High Value Home Insurance

What Is High-Value Home Insurance?

High-value home insurance is a kind of homeowners insurance aimed at homes that have a high market value. It’s the perfect insurance policy for homes worth $1,000,000 or more, which includes high-value condos, second homes, heritage homes, and homes that feature special interior design or architectural elements.

Homeowners benefit from a comprehensive package that will provide all the coverage they need, and that’s exactly what high-value home insurance provides. It’s a much better option for high-value homes than your standard homeowners' policy.

Over 1 in 20 Florida homes are now worth $1 million or more, so high-value home insurance in Florida is quite popular. Protecting the things, you own is essential because the stakes are quite high. As such, you need to work with insurance companies that specialize in providing the insurance policies affluent homes require.

High-value homes are not just luxuries, they are a reflection of milestones and achievements that you’ve accomplished in your life. Insurance aimed at these high-value properties not only protects the home itself, but has available options to protect your valuables, collections, and the unique elements that make your home so unique and luxurious. We are happy to provide the guidance you need to insure your fine home and important assets.

We provide high-value home insurance and we can help you customize coverage based on your unique needs. Our insurance carriers provide high coverage limits and a variety of options so you can have peace of mind. The process of choosing appropriate insurance can be overwhelming without assistance, that’s why it’s our goal to simplify your insurance experience!

Our expert knowledge and network allow us to provide the support and guidance you need to get the most out of your high-value home insurance. Let’s continue exploring this kind of insurance to provide a clearer idea!

What’s the Main Difference Between High-Value Insurance and Standard Home Insurance?

The main difference between high-value insurance and standard home insurance is that it offers higher limits and broader coverage for your unique needs. For example, let’s say that you and your neighbor both have high-value homes worth $1,000,000.

You get high-value home insurance with replacement cost coverage and your neighbor gets standard home insurance with a structural coverage limit of $1,000,000. If there happened to be a fire on your street, your homes would need to be rebuilt.

High-value homes often have features and materials that are difficult to replace, so it may cost more to rebuild them. If your neighbor’s home costs $1,200,000 to rebuild, his current insurance policy will only cover $1,000,000.

The rest would need to be paid out of pocket or he would have to settle for a less glorious home. In contrast, your high-value home insurance would cover the full cost of rebuilding even if it goes over the replacement cost coverage limit. This is just one of the big advantages high-value home insurance has to offer.

What Does High-Value Home Insurance Cover?

The structure of high-value home insurance coverage is quite similar to that of the standard home insurance policy. However, as was shown in the example above, basic coverage is not enough to cover the needs of high-value homes and it can leave big, expensive gaps.

By working with us, we will give you options to make sure your insurance policy is customized to the needs of your high-value household so there will be no gaps. This is why high-value home insurance exists, to bridge the gaps and cover risks that your standard policies don’t address.

In Florida, the weather is an important factor to consider because it increases the risk of loss. In many instances, with high-value home insurance, you will be able to rebuild your house in case of a loss and restore it to its original architecture and design. You may also get coverage for special features and customizations in the home that will be replaced.

You should consider the following when looking at high-value home insurance:

• Generous coverage limits to protect your high-value home in the present and future.

• Generous coverage limits for valuable belongings.

• Personal liability coverage for the homeowner and their family.

• Coverage for cost overruns if the rebuilding exceeds the limit of the policy.

• Broad liability protection for a wider variety of risks than the standard policy.

Most insurers offer higher coverage limits for high-value homes and we offer specialized options that will allow you to cover all your bases. For example, your high-value home is not the only valuable asset you have. If you’re a collector, whether that’s fine art, rare coins, fine wines, jewelry, classic cars, etc., they can’t be covered with a standard home insurance policy. You will need a specialized high-value home policy to keep these valuable and unique belongings protected.

To provide a bit more insight, here’s a general overview of the coverage provided by high-value home insurance:

Structural Replacement or Repair

Standard home insurance provides structural replacement or repair coverage but it’s often limited to the rebuilding cost. High-value homes often cost more to rebuild if they have suffered damage due to their unique features and design.

That means it’s more likely they will cost more to rebuild, so the costs can easily go over the coverage limit. In that case, you would need to get guaranteed replacement cost coverage which is often a monthly add-on that could increase as building costs and labor increase.

With high-value home insurance, this won’t be an issue. Even if the costs exceed the stated limit of the policy, the guaranteed replacement cost coverage is included and it will cover the rest without having to pay expensive add-ons or riders.

Belongings

High-value home insurance can offer broader limits for valuable belongings such as antiques, fine art, jewelry, money, and other items, including business items that you store in your home. With a standard home policy, you’d have to pay an additional percentage to insure your belongings at replacement costs instead of true cash value.

Additionally, if you make a claim based on the current cash value of belongings, the standard home insurance will pay less for older items. In contrast, high-value home insurance often insures items at replacement cost, which means you’ll get the resources to replace the items.

Liability and Living Expenses

High-value home insurance offers a higher limit for personal liability, loss assessment, and medical payments. Additionally, it can cover the legal costs if you need to be defended against lawsuits for defamation, libel, or slander.

On the other hand, this kind of policy also offers more generous living expenses. If you suffer a loss and your home needs to be rebuilt, the living costs while you wait for construction to be finished will be higher, so they may cover hotel, food, and laundry.

Why You Should Consider Specialty High-Value Home Insurance

Your high-value home is a result of hard work and success, which means you need to protect it. This type of home often requires you to consider unique coverage. In Florida, that includes weather risks. However, liability is the biggest risk due to lifestyle.

For example, if you maintain a household staff and tend to entertain guests very often, liability risks will be higher. Additionally, there is more at risk; not just your home, but also valuable belongings.

Standard policies have strict limits regarding the coverage of your valuables, which means you will be underinsured. Specialized high-value home insurance can offer higher coverage limits that you can customize to make sure it fits your needs perfectly.

This won’t only guarantee that your high-value home insurance protects everything you care about, but it will also keep it affordable. With specialized high-value home insurance, you only have to pay for what you need because we will help you create tailored solutions.

Let’s take a look at the most important aspects of specialized high-value home insurance in a bit more detail.

Liability Coverage

As mentioned before, liability is one of the main concerns for high-value homes. While losses due to damage can be substantial, losses due to personal liability can be a lot worse, which is why it is the largest risk. As you may well know, all insurance policies offer some kind of liability coverage.

However, liability coverage limits provided by standard home insurance can be too low. Specialized high-value home insurance increases those limits and allows you to expand your coverage as well. An umbrella policy is the most affordable way to increase coverage limits for underlying insurance policies.

Additionally, it offers liability coverage that isn’t available in standard home insurance. This includes coverage against claims of slander, defamation, or libel. In the age of social media, it can be easy for others to misinterpret whatever you or your family post online, for example. Given your lifestyle, this poses a greater risk. So, having this additional coverage will be helpful.

You have the option of expanding your liability coverage even more by getting an excess liability policy as part of your high-value home insurance. Having several layers of protection will increase the limits of liability coverage while remaining cost-effective.

 Weather Risks in Florida

You know how unpredictable and dangerous Florida weather can be. The state receives more storms than other states and hurricanes are not an uncommon occurrence. That means that Florida weather is an important risk to consider when it comes to high-value home insurance.

You need your coverage limits to be up to par with Florida’s weather risks. Additionally, you’ll need your policy to cover your valuable belongings and the unique features and elements of your high-value home. We have your back with our high-value home insurance packages for Florida homeowners!

They are designed to offer coverage for wind and rain, which are the biggest concerns. Flooding is also a risk to keep in mind, depending on what part of Florida your high-value home is located. We will help you cover all your bases with our specialized policies.