Do You Need High-Value Home Insurance?
Home insurance is designed to protect your property from a variety of hazards that could result in significant monetary damages. Standard homeowners insurance policies include coverage limits that may not be enough to cover your damages depending on the value of your home.
High-value home insurance helps homeowners with high-value properties get more protection by offering larger coverage limits. If your home meets the requirements for this type of home insurance, it’s worth considering as it may help you avoid significant out-of-pocket expenses if you experience damages due to a covered event.
If you’re not sure whether or not your standard homeowners insurance policy offers enough coverage for your needs, here’s everything you need to know about high-value home insurance.
KSA Insurance can help you get the coverage you need. Contact us today to request a quote.
What is High-Value Homeowners Insurance?
High-value home insurance is very similar to standard homeowners insurance except that it offers higher coverage limits and additional benefits that help protect your home and its valuable contents, including art and jewelry, from damages.
What is a high-value home?
To qualify for high-volume home insurance, your home typically needs to have a replacement cost value (RCV) of $1 million or more. The RCV is the cost required to rebuild your home, not its market value. This includes the exterior, foundation, built-in appliances, roofing, flooring, and more.
For homes worth this much, a traditional home insurance policy will usually not offer enough coverage, making it necessary for homeowners to purchase high-value home insurance for comprehensive protection.
How much does it cost?
Like standard homeowner insurance, the cost of high-value home insurance can depend on several factors, including:
- Your home’s RCV
- Credit score
- Claims history
- Coverage limits
As these policies offer increased coverage limits for high-value homes, they carry higher premiums than standard home insurance policies.
What Does High-Value Home Insurance Include?
High-value homeowners insurance includes several additional measures and features that protect high-value homes from various hazards.
Higher coverage limits
The primary benefit offered by high-value home insurance is expanded coverage limits that protect your home from covered hazards. These increased limits apply to both your home and its contents.
While standard homeowners insurance policies offer endorsements to increase coverage for certain items, high-value policies cover your expensive items, like jewelry and antiques, without the need for endorsements.
With high-value homeowners insurance, expanded coverage limits are typically available for:
- Dwelling coverage
- Content coverage
- Second home coverage
- All-risks coverage for home contents
- Liability coverage
- And more
High-value policies also often offer additional endorsements for disasters like floods and earthquakes that are typically not offered by standard homeowners insurance policies.
Additional benefits and coverages
High-value policies offer several additional benefits and coverages that are usually not found with standard policies.
Guaranteed replacement cost coverage ensures that your policy will pay for the full cost to rebuild your property, even if the cost exceeds your coverage limits. This applies when your home is completely destroyed due to a disaster, like a wildfire.
Your high-value policy may also offer additional coverages, like water backup coverage, landscaping coverage, business property coverage, and identity fraud coverage for no additional cost.
Other additional benefits may include:
- The option to choose a cash settlement in the event of a total loss.
- Home inspection and risk consulting services.
- The ability to avoid paying a deductible after a major loss with deductible waivers.
These additional benefits provide additional protections for individuals with high-value homes.
Individuals that purchase a high-value home insurance policy will typically receive dedicated customer service to enhance their experience.
For example, this may include a personal insurance representative that will help you file claims, hire contractors, and perform other tasks on your behalf. High-value home insurance providers are also more experienced in dealing with expensive items and materials, meaning you’re more likely to receive accurate appraisals for high-end items.
Other Policies to Consider
Many insurance companies offer several insurance products designed for high net worth homeowners.
This may include:
- Boat insurance
- Second home insurance
- Umbrella insurance
- Travel insurance
- Vintage car insurance
These types of policies provide additional protection for high-cost items and assets that may not be covered under your high-value home insurance policy.
Request a Quote
If your home’s value exceeds $1 million or more, you should strongly consider purchasing a high-value home insurance policy to ensure your property and its contents are fully protected against common perils.
At KSA Insurance, we work with residents in South Carolina and across the southeastern United States to help them find comprehensive home insurance policies that protect themselves, their homes, and their personal property from a wide range of risks.
Contact us today to request a quote and learn more about high-value home insurance.