For homeowners who maintain luxury homes and have high net worth, standard homeowners insurance is usually not enough. It is designed to cover homes that are more costly than the average home, such as luxury single family homes, apartments, condos, mansions, historic homes, custom homes, architecturally significant homes, and homes with expensive or unique materials or structural features.
High-value home insurance policies usually have larger limits and more hands-on service than a standard insurance policy.
Better Dwelling Coverage
With a standard policy, your dwelling is insured for a specific amount, which is listed on your policy’s declaration page.
High-value home policies will often go above and beyond a standard policy by offering extended replacement cost coverage for your dwelling and other structures. This feature gives you reimbursement for house repairs that are above the amount listed on the policy. This can be important if local material and building costs rise after a disaster such as a tornado.
There may also be a “cash out” option in a high-value home insurance policy. If your home has been destroyed, this lets you take the insurance check and build elsewhere.
Better Contents Coverage
Getting enough insurance for possessions is often of special concern to owners of luxury homes, which are filled with expensive personal items.
All Risks Coverage for contents – A standard home insurance policy covers your dwelling for all risks (meaning anything not specifically excluded, such as earthquakes) but your contents have protection from 16 named perils such as fire and lightning. A high-value home policy, on the other hand, will insure contents for all risks.
Replacement cost – you can generally choose to insure your possessions under “actual cash value” or “replacement cost” coverage with a standard policy. Replacement cost coverage is better because it reimburses you for new items to replace the damaged ones – such as a new living room furniture set. Actual cash value would give you only the depreciated value of the furniture, which leaves you short when you want to buy new items.
High-value home insurance policies generally include replacement cost automatically. They also typically provide higher coverage limits for valuable items such as jewelry.
Pairs and Sets – having damage to one item in a pair or set can cause a problem when there’s no exact replacement available. High-value homeowners insurance typically pays to replace the entire pair or set.
Luxury vehicles face similar risks associated with traditional vehicles. However, the risk for theft, vandalism, and expensive repairs is greater. If you file a claim, the costs associated with repairing or replacing the vehicle might be several times higher.
If you have an expensive vehicle, liability doesn’t cover your damages. You also need to purchase comprehensive and collision coverage, which is typically called full coverage.
A standard home insurance policy includes personal property coverage. But most insurers limit the amount of money they’ll pay to repair or replace certain types of personal property. The value of collections such as fine art, model trains, stamps, wine, and fine jewelry often exceeds the limits of a standard home insurance policy. There are 2 main categories of extended coverages for valuables and collectibles: Scheduled Property Coverage and Stand-Alone Collectibles Insurance
Scheduled property coverage is an add-on to your policy that allows you to increase the amount of coverage for a specific item, like a collectible comic book. To add scheduled property coverage, you may have to provide documents such as an appraisal, photos, and proof of ownership such as a receipt.
Stand-Alone Collectibles Insurance You can also elect for a separate collectibles insurance policy. Collectibles insurance is designed to protect your treasures and can provide broader coverage than a scheduled property rider. You can buy collectibles insurance for almost any type of collection, including: antique rugs and tapestries, books and maps, collectible stamps, comic books, dolls, fine art, firearms, jewelry, model trains, musical instruments, pottery, rocks and minerals, sports memorabilia, toys, vintage cameras, wine
Watercraft insurance is an umbrella term for 3 types of insurance: boat insurance, yacht insurance, and personal watercraft insurance. It protects against damages to vessels powered by a motor that has a horsepower of at least 25 miles per hour (mph). Examples of the types of costs covered by watercraft insurance policies include physical loss or damage to the boat, theft of the boat, and towing.
Most yacht coverage is broader and more specialized than pleasure boat coverage because larger vessels travel farther and are exposed to greater risks. It also generally costs more in design, material and labor. There are 2 main parts of a yacht insurance policy: hull insurance and protection and indemnity (P&I).
To determine the ideal types of personal umbrella and other liability insurance for your needs and goals, contact us today to schedule a time to review your situation to find the right coverage.
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