There’s no denying that home repairs can be pricey, especially for expensive properties. If you’re the owner of a high-value home, you may need more coverage than the standard homeowners insurance policy provides. Luckily, you have the opportunity to purchase a high-value home insurance policy. This type of insurance provides coverage for homes valued over $750,000 and often includes higher property coverage limits and increased asset protection. Let’s walk through what you need to know about high-value home insurance.
What is high-value home insurance?
Most standard homeowners insurance policies have coverage limits that would not be enough to cover repairs or replacements made to large properties with a higher market value. That’s where high-value home insurance comes in.
High-value home insurance is a type of homeowners insurance policy that provides specific coverage for properties like large homes, historical houses, homes of architectural significance or homes constructed from rare or expensive materials. Coverage will vary by carrier, but most high-value home insurance policies cover homes worth more than $750,000.
How is a high-value home insurance policy different from a typical homeowners insurance policy?
High-value home insurance offers the same type of home insurance coverage as a typical policy. The main difference is that a high-value policy will often have higher coverage limits. Dwelling coverage in a typical home insurance policy will cover you for the amount listed on your policy, while a high-value policy includes extended replacement coverage. This type of home insurance policy can also include “all risks” coverage and a more generous liability support, giving you coverage for legal defense costs outside of your liability limit.
How much home insurance coverage do I need to cover my high-value home?
When determining how much home insurance coverage you need, one of the most important considerations is how much your home and personal property would cost to be replaced. For high-value homes, you’ll want to consider replacement cost coverage, which replaces your home and belongings at full value instead of actual cash value and also factors in depreciation. Our coverage quiz can help give you an idea of how much home insurance coverage would be good for you.
How much does high-value home insurance cost?
Because high-value home insurance covers more expensive properties, the rates will typically be higher than traditional home insurance rates. However, like traditional home insurance, premiums will depend on a variety of factors. These include where your home is located, the age and build of your home, your credit score and any additional coverages you choose to add to your policy.
Protect Your Other Assets with Umbrella Insurance
In the event that you reach your homeowners insurance coverage limits, you still have the opportunity for additional protection with umbrella insurance. Umbrella insurance—also known as excess liability insurance—can protect your assets when you’ve exhausted the limits of your home or auto insurance coverage. Umbrella insurance is a good option for high-net-worth individuals, because it can help protect you from being responsible for unexpected costs related to your high-value property.
Find High-Value Home Insurance with SelectQuote
As a homeowner, protecting your home and assets is incredibly important, and having the right home insurance policy is the best way to do so. At SelectQuote, we can answer any questions you have about high-value home insurance. We’ll also search a variety of trusted home insurance carriers in a matter of minutes, quickly finding you the right coverage for your property.
