High Value Home Insurance

High-value home insurance is a specialized homeowner insurance product, specifically designed for homes with a high cost to rebuild. Typically, a high-value home insurance policy is offered only to homeowners with a replacement value above $750K. Note that this value does not reflect the market value of your home but represents the cost to rebuild at the time of the loss and typically reflects a number higher than market value.

A standard home insurance policy is a boxed model of providing insurance. Premiums and coverages are calculated as the percentage of the cost to rebuild and as a result less flexible. This unnecessary coverage can result in higher premiums that would be better served filling coverage gaps on other parts of the policy. Additional coverages and enhancements are added on ala carte to standard homeowner policy and there are limitations.

If you are a high-value homeowner, it’s possible to add policy endorsements to fill gaps with standard coverage, but in the end risks being significantly underinsured. The standard policy and a standard insurance carrier marketplace does not account for a high-value homeowner’s unique needs, lifestyle and expectations at the time of a loss.

Not every home or every person requires a high value home insurance policy. It is very much dependent on the unique needs, lifestyle and expectations of the homeowner.

If your home is valued over $750K or greater, you are a renter or own a condominium, you should inquire and discuss this type of solution with a licensed insurance agent that has knowledge of the space. Not every agency has access or expertise to the high net worth market place.

Here are some reasons to consider a high value home insurance policy:

• Customized coverage

• Specialized coverage: to protect your lifestyle

• Claims experience: White glove claim experience should a loss occur.

Other reasons to consider a high value home insurance policy:

• Your home has unique architectural features.

• Your home uses materials that are hard to find and replace.

• Your home is a heritage or on the historical home registry.

• You own expensive or priceless fine art, jewelry, wine, or other items

• The interior and exterior design features are unique, such as luxurious outdoor living areas, guest houses, swimming pool area, custom landscaping.

• Protection for vacation homes or second homes.

• Car insurance for luxury autos, classics and antique vehicles

• Comprehensive cyber and fraud coverage

• Liability insurance for household employees

• Liability coverage for non-for-profit board members
  

Rates do vary greatly based on many individual risk factors. Each carrier is different on how they view and calculate.

Some of the most impactful rating factors are:

• Your credit score

• Your occupation

• Location of the home

• Construction type of the home

• The cost to reconstruct your home

• Year built

• Your loss history (Typically the past 5 years)

• Deductible
  

While there are many features, three key reasons to choose high-value home insurance comes to:

• Policy customization

• Enhanced and automatic built in coverages

• White-glove claim response and experience down to:

With a standard home insurance policy coverage and offerings are capped and limited. Coverage offerings and enhancements are not as broad, and the claim experience and expectations may fall short. Some of the automatic features that are part of the high value home insurance:

• Deductible waiver – If your deductible if $25K or less and you experience a covered loss that is more than $50K, your deductible is waived.

• Guaranteed Replacement Cost - A guarantee that your home will be fully rebuilt in the event of a total loss, regardless if the cost to rebuild exceeds your policy limit. In this same total loss scenario, a standard home insurance policy would only pay up to your policy limit.

• Cash Settlement Option - Coverage gives you the option to rebuild or receive a cash settlement. You decide.

• Broader liability coverage

• Including defamation, liable or slander.

• Unlimited Loss of Use
  

High net worth insurance is a niche insurance product, comprised of multiple policies and coverage layers. It is designed to protect the unique lifestyle and needs of the high-net-worth families.

These carriers include:

• AIG Private Client

• Berkley One

• Chubb Personal Risk Solutions

• Cincinnati Insurance Companies

• Pure

• Vault