More on Home Insurance
More on Home Insurance
High-value homeowners insurance is offered by both standard and high-end insurance companies — it features higher coverage limits for your home and personal property and policies include multiple perks and benefits.
With homeowners insurance, your home, personal belongings, additional living expenses, and legal expenses are covered in the event that something bad happens. Most home types are covered by the same six basic protections found in every standard homeowners insurance policy, but if you live in a high-value home with expensive or priceless valuables and appliances, you’ll want a more robust policy with higher coverage limits.
Many insurance companies that cater policies primarily to small or mid-sized homes — such as Nationwide and Travelers — often have separate policy packages for high-value residences. High-value home policies are more expensive than standard insurance, but often include extended or guaranteed rebuild coverage, personal property replacement cost reimbursements, high coverage limits for expensive valuables, and a number of other perks and benefits that aren’t found in a standard policy. There are also several insurance companies that will only insure high-value homes or expensive homes that need coverage on multiple other lines — like car insurance, boat insurance and valuables insurance.
If you live in a home with a replacement cost of $1–1.5 million or higher, you’ll want to look into a policy catered toward high-value properties, or high-value homeowners insurance
With high-value homeowners insurance, policies typically include more comprehensive coverage and higher coverage limits for expensive homes
Chubb and AIG are two of the go-to luxury home insurance providers, but standard insurers like Travelers and Nationwide also offer high-end policy packages
Most people think of high-value homes solely in terms of the property’s market value; a high-value home could mean a massive ranch home in Dallas or a 1,000 square-foot townhouse in Brooklyn — in both cases, the purchasing price is probably over $1,000,000.
But for insurance purposes, the term is primarily used as an indicator of how much it will cost to rebuild the home — including the exterior structure itself as well as flooring, cabinetry and built-in appliances. (Remember, your home rebuild coverage, or dwelling coverage amount should reflect how much it’d cost to construct a new home in the event it is leveled or burned to the ground. Your dwelling coverage isn’t based on the market price or fair market value of the home.)
From a homeowners insurance standpoint, a high-value home generally means a home with a replacement cost of around $1–1.5 million and up, according to Fabio Faschi, property and casualty operations lead at Policygenius.
When insuring a home with a replacement cost in the millions, insurance brokers will typically point you toward companies that cater to high-net worth homeowners like Chubb and AIG. High-value home insurers are known in industry terms as “premier” insurance companies and offer not just more robust and granular insurance coverage, but “white glove” customer service and claims-handling as well.
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You’ll notice a few common themes when looking at high-value homeowners insurance policies from company to company: broader coverage, expanded coverage limits, multiple additional coverage endorsements, and policy perks and benefits like immediate reimbursements after a loss.
Here’s what you should expect from a high-value home insurance policy compared to standard coverage:
A typical HO-3 homeowners insurance policy — the standard policy form used by insurers — covers your home at its replacement value and your personal property at its actual cash value, by default. That means if your three-year-old TV is destroyed in a fire, you’ll only be reimbursed for the TV after three years of depreciation has been deducted from its replacement value. Most insurers give you the option of adding replacement cost contents coverage for an additional premium.
In terms of the hazards you’re covered against in a standard policy, the dwelling is covered by “all risks” (everything except what is specifically outlined in the policy) while your personal property is only covered against the 16 perils named in the policy. All risks coverage is considered superior to named perils as it has the potential to cover a broader variety of losses since the only perils it doesn’t cover must be specifically listed in the policy.
A high-value home insurance policy covers your home and personal property at its replacement cost, and both coverages are insured against “all risks” as well. Here are some other coverage enhancements you’ll find in a high-value home policy:
Unlimited additional living expenses while your home is being repaired or rebuilt
Up to $25,000 in medical payments coverage
Unlimited debris removal coverage and high landscaping coverage limits
High sublimits for personal valuables like jewelry and fine art that typically have low limits of liability in a standard policy
A high-value home insurance policy will also include multiple additional coverages that need to be added as endorsements to standard policies. Here are some — but not all — additional protections that you should expect to see in high-value homeowners insurance.
Identity theft coverage
Business property coverage
High ordinance or law and loss assessment coverage limits
Family protection coverage
With high-value home insurance coverage, you’re paying for a lot more than just better coverage — luxury home insurance providers also offer certain perks and benefits that won’t be available through a standard insurance company. Homes insured with Chubb and AIG, for example, are offered special protection against natural disasters like wildfires and hurricanes. If you live in a wildfire area, Chubb will provide you with a consultation on how to better protect your home against brushfires and will even deploy a special firefighting team to your home if a wildfire threatens your area.
Here are some other perks you should expect with a high-value homeowners insurance policy:
Complimentary home appraisal service
Cash settlements, meaning you can use claim payouts however you want — not to just to rebuild or repair your home or personal property
Deductible waiver for losses over $50,000
Loss prevention consultations
High-value homeowners insurance policies — either purchased through a luxury provider or a standard company — are generally going to be more expensive than the average $1,200 cost of a standard policy. The amount you pay will vary depending on where your home is located, the age and build of your home, your credit score, and if you need any additional coverage for high-priced valuables.
If you’re looking for high-value homeowners insurance, look no further than Policygenius — we offer the likes of Chubb, AIG, and Nationwide and can help you find a high-value policy that’s right for you and your home.
Pat Howard is a homeowners insurance editor at Policygenius in New York City. He has written extensively about home insurance cost, coverage, and companies since 2018, and his insights have been featured on Investopedia, Lifehacker, MSN, Zola, HerMoney, and Property Casualty 360.
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