Insurance for high-value homes is also known as homeowners insurance for million dollar homes. This is the kind of policy that you’ll need if you have a property with a value that’s higher than average. More specifically, the worth of your home should be $750,000 or more. This applies to heritage homes and homes with special features and design elements. If you qualify for high end homeowners insurance, you’ll be receiving one of the most comprehensive types of insurance available.
It’s important to note that high value home insurance may be more expensive than standard home insurance because the policy could offer a more personalized experience and the coverage limits are greater than typical home insurance policies.
FYI: This type of insurance is not limited to primary and secondary residences, it’s also available for rental homes and condos.
The challenge for high-net-worth individuals when it comes to insuring million dollar homes is to not over-insure against minor threats or under-insure against major threats. That’s why high value homeowners insurance is so useful, because it creates a balance between needs and coverage.
According to Bill Gatewood, director of personal lines at Burns & Wilcox, under-insuring high-value homes is quite common at 40%. This is because homeowners usually get enough insurance to cover the sale price or the mortgage of the home, which doesn’t include specialty construction or custom work, but not enough insurance to rebuild in case of a total loss.
You should consider this type of home insurance if:
Essentially, a high value home is unique and luxurious, which means that high value home insurance offers an expanded coverage limit, compared to standard homeowners insurance. If you qualify for this kind of insurance, your home will be inspected so that its value is verified and a guaranteed replacement value is provided.
During this inspection, the insurance company will help you document everything you own and they will make suggestions about how you should protect your most valuable possessions.
Compared to standard home insurance, high value home insurance offers larger policy limits for reconstruction costs, structure repair or replacement coverage, personal collections (jewelry, antiques, fine arts, etc), living expenses during restoration, cyber protection, reconstruction costs, and much more.
The bottom line is that homeowners insurance for million dollar homes may be more expensive than standard policies per square foot, but when you have a property with a value that’s much higher than average, the policy pays for itself. Fill out the form on top of the page or visit our home insurance page to request a quote now!