Understanding High-Value Home Insurance Coverage
High-value home insurance coverage is specifically designed to meet the unique needs of homeowners with high-value properties and valuable assets. This type of insurance goes beyond the standard coverage offered by typical homeowner's insurance policies and provides comprehensive protection for luxury homes, high-end possessions, and the additional risks associated with owning high-value properties.
High-value home insurance provides coverage for homes valued over $750,000 and often includes higher property coverage limits and increased asset protection. In this article, we’ll review what high-value home insurance is, how it differs from standard coverage, and how much it typically costs.
What is high-value home insurance?
Most standard homeowners insurance policies have coverage limits that would not be enough to cover repairs or replacements made to large properties with a higher market value. That’s where high-value home insurance comes in.
High-value home insurance is a type of homeowners insurance policy that provides specific coverage for properties like large homes, historical houses, homes of architectural significance, or homes constructed from rare or expensive materials. Coverage will vary by carrier, but most high-value home insurance policies cover homes worth more than $750,000.
How is a high-value home insurance policy different from a typical homeowners insurance policy?
High-value home insurance includes the same type of home insurance coverage as a typical policy, but it also offers a variety of additional coverage options and benefits, including:
Extended Replacement Cost Coverage: High-value home policies often offer extended replacement cost coverage for dwellings and structures, providing reimbursement for repairs exceeding the amount listed on the policy's declaration page.
Better Contents Coverage: These policy types provide higher levels of contents coverage, blanket jewelry coverage, coverage for antiques, fine art, and collectibles, as well as coverage for all risks (as opposed to named perils) for personal belongings.
Generous Liability Coverage: High-value home insurance policies provide extensive personal liability coverage, offering options for higher coverage limits and covering legal defense costs outside the liability limit.
Increased Coverage Limits: These policies provide automatic coverage for sewer backup, increased limits for replacing shrubs and trees, better medical payment limits, and higher coverage for credit card, forgery, and counterfeit money compared to standard policies.
How much home insurance coverage do I need to cover my high-value home?
When determining how much home insurance coverage you need, one of the most important considerations is how much your home and personal property would cost to be replaced. For high-value homes, you’ll want to consider replacement cost coverage, which replaces your home and belongings at full value instead of actual cash value and also factors in depreciation. Our coverage quiz can help give you an idea of how much home insurance coverage would be good for you.
What is the cost of high-value homeowners insurance?
Since high-value home insurance covers more expensive properties, the premiums will typically be higher than traditional home insurance rates. The cost of high-value homeowners insurance can vary significantly based on the value of the property and the level of coverage required.
While the average annual cost of homeowners insurance in the U.S. is $2,511 for a standard homeowner, high-value homeowners may expect to pay higher premiums due to the increased value of their properties and possessions. The cost of high-value homeowners insurance can also be influenced by factors such as property location, size, condition, and the type of coverage you choose.
Protect Your Other Assets with Umbrella Insurance
In the event that you reach your homeowners insurance coverage limits, you still have the opportunity for additional protection with umbrella insurance. Umbrella insurance—also known as excess liability insurance—can protect your assets when you’ve exhausted the limits of your home or auto insurance coverage. Umbrella insurance is a good option for high-net-worth individuals, because it can help protect you from being responsible for unexpected costs related to your high-value property.
Find High-Value Home Insurance with SelectQuote
We know that as a homeowner, protecting your property and assets is incredibly important, and having the right home insurance policy is the best way to do so. At SelectQuote, we can answer any questions you have about high-value home insurance. We’ll also search a variety of trusted home insurance carriers in a matter of minutes, quickly finding you the right coverage for your property.
