Do you own a high net worth home? One of the ways you can protect it and other valuable things is by getting high-value home insurance. When you own a luxury home, the standard homeowners policy may not give you adequate coverage. This is where high net worth home insurance comes in. This type of policy provides sufficient coverage needed to protect a luxurious home. It comes with higher coverage limits than a typical homeowners’ policy. Rebuilding a high-end home can be very costly. But with high-value home insurance, the homeowner is cushioned from that financial loss.
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What Qualifies as a High-Value Home?
A high-value home is one that costs $750,000 or more. Some insurance companies offering this policy have a limit of $1 million. Historic homes and homes with unique features can also be classified as high-value homes. It is important for policy buyers to realize that the market value cannot be the same as the replacement cost. Insurance companies account for the complete cost of rebuilding a house, from flooring, appliances, cabinets, and labor. When you factor in all this, rebuilding a home to its initial condition will quickly exceed $750,000.
Certain home insurance companies do not cover homes valued at a certain price because the risk is too high. That is why if your home is costly, you should consider this policy. With that said, here are some of the things you need to consider when buying this policy.
Cost
As expected, high-value home insurance will be more costly than the standard home insurance policy. For obvious reasons, your home is more costly. In addition, if you have costly valuables like art, jewelry, furs, coins, fine wine, high-end appliances, pools, etc., replacing or fixing these items would be expensive. That is why this type of insurance is more costly than usual home insurance. However, it is all worth it because you are getting more coverage. But before you buy, shop around. Look at the insurance companies in your area offering high net worth home insurance. Not all insurance companies are the same. Shopping around ensures that you end up with a company offering the best rate.
Coverage Limit
The coverage limit is the maximum amount that your insurer will pay for the damages in case of an accident such as a burglary or a fire. When choosing a high-value home insurer, you want to ensure that you are comfortable with the coverage limit you are getting. Keep in mind that when it comes to rebuilding, certain high-value home policies can pay out more cash than the covered amount.
Opt for a High Deductible
An insurance deductible is the amount you will have to pay before your coverage kicks in. If you choose to pay a high deductible, then your premium will be lower. And if you choose a lower deductible, the vice versa is also true. While it is all about your preference, a high deductible means you will not be financially strained every month when covering the premiums.
Customer Service
Considering that you are paying more than the usual home insurance, it is only fair to enjoy great customer support whenever you need service. This is also an important aspect to think about when choosing a high-value home insurer. It is good to have a dedicated agent that is just a phone call away whenever you have questions. When inquiring about this policy from different insurers, from the way the customer care agent speaks, you will be able to tell whether this is a reliable company or you need to continue looking.
When you own a high-end home, if you encounter a risk like fire, the financial loss can be devastating. But with insurance, you will not have to worry as your policy will cover the resulting expenses. That is why you need to think hard before choosing a high-value home insurer. You need a partner that will not only advise you accordingly but also give you quality service.
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