Understanding the Cost of High-Value Home Insurance

A standard policy won’t provide the comprehensive protection an owner of a luxury residential property with high net worth possessions needs. For maximum coverage, a high-value home insurance policy is often required. Read on to learn more about the need for high-end homeowners’ insurance.

What Is High-Value Home Insurance?

This special coverage, also known as high-value home insurance, is designed for luxury, expensive properties. You should consider getting it if you own a property valued above $750,000, be it a magnificent castle, waterfront, or urban domotic house. However, some carriers specialize in properties worth $1 million or above.

Why Invest in High-Value Home Insurance?

Exclusive coverage for your luxury home and its valuable contents is necessary for effective protection and peace of mind. It’s impossible to have full coverage for your high-end investment with a standard homeowners’ insurance policy.

How to Insure Your Luxury Residential Property?

When it comes to insuring a high-end property, you should choose a policy that provides the right coverage amount. Consider involving an expert (insurance agent) to audit and establish your specific coverage requirements. Key considerations to get maximum protection include:

  • Your valuables, from the wine cellar and fine art collectibles to high-end jewelry
  • Your physical luxury residence
  • The full cost of rebuilding your physical property from scratch and replacing its contents

Customizing Your High-End Property Coverage

Some people have an average home with high-value possessions, while others have a luxury residence with modest-value contents. Since the owner’s high-value home insurance requirements vary widely, you should always seek a personalized cover that meets your needs. Consider these factors when customizing your coverage:

  • Including umbrella insurance to maximize liability protection
  • Securing a guarantee to cover all the valuable possessions inside your luxury home
  • Insuring your home for its replacement value
  • Including water damage/natural disaster protection

Luxury Home Insurance Coverage Options

When shopping for high-value home insurance, you’ll encounter providers specializing only in luxury residences. Traditional carriers whose insurance products include high-end property solutions may also suit your requirements. However, not every luxury home insurance policy provides the coverage benefits you’re after. Here are some of the options available in the market today:

  • Policies that cover money in the safe and luxury cars in the garage
  • Policies that exclude certain items or only include them as a coverage option, such as damage to windows or flower boxes
  • Policies with optional garden reconstruction coverage
  • Premium, comprehensive solutions that include garden reconstruction, pest control, and irrigation systems coverage by default
  • Traditional policies with optional coverage for cars in the garage

Factors that Impact Your High-Value Home Coverage Costs

Your insurer will calculate your high-value home insurance premiums based on risk/cost factors such as:

  • Your home’s location (a luxury villa in an exclusive, private neighborhood is safer and cheaper to insure)
  • Type/features of the house (differences in design and other attributes for high-end mansions, palatial homes, etc. do impact coverage costs)
  • Age of the home (generally, older properties attract higher premiums)
  • Construction material (high-quality materials go with high insurance costs)
  • Personal property coverage (the value of your insured jewelry, works of art, and other contents of your home)
  • Your home’s usage (is it a habitual residence, vacation property, or rental?)

Protect Your Luxury Property with Reardon Insurance!

A luxury property is a massive financial investment–you should guard it with all you’ve got. The experts at Reardon Agency can help provide the right high-value home insurance to protect your top-of-the-range property. Contact us today to get started!

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