For homeowners who maintain luxury homes and have high net worth, standard homeowners insurance will leave liabilities and gaps in critical coverages. For homes with values starting at 1 Million dollars +, a high level of attention to proper risk assessment and analysis is required. It is crucial to identify and address liabilities and potential coverage gaps which could expose the client and their property. For high value homes and estates, a standard homeowners insurance policy may not provide enough coverage (or the right type of coverage) for the home and the contents such as custom high end finishes, antiques, art, jewelry and valuable collections.
Property Insurance
High-value home policies can go above and beyond a standard policy by offering extended replacement cost coverage for your dwelling and other structures. This will have your home repaired or rebuilt to its original condition-even if the cost exceeds your listed policy limit. The carrier may even pay for upgrades made necessary by the loss due to modern building codes .This can be important if material, labor, and building costs rise due to inflation and other market conditions, such as we are experiencing now.
Certain Home insurance companies specialize in covering High Value Homes and are better equipped, and more experienced in handling losses in such scenarios. They understand the unique and sophisticated requirements to rebuild and repair fine homes, such as the rare materials and specialized contractors required to achieve the required level of craftsmanship to bring the home back to it’s original condition, or better. Some of these carriers will offer options such as the ability for you to choose your own contractors, or “cash out” options. If your home has been destroyed, this lets you take the insurance check and build wherever you want.
Another extra offered by some high value homeowners insurance providers is guaranteed replacement cost coverage. Estimating the rebuild cost of a high-value home can be very complicated. The cost of rebuilding unique construction features and distinctive touches can be difficult to estimate. With a standard homeowners insurance policy, often the risk of cost overruns fall to the homeowner. Specialized high value homeowners insurance policies can put this risk with the insurance company by offering the client guaranteed replacement cost coverage.
High Value Homes and Liability Insurance
Liability Insurance – high value home insurance policies provide liability coverage, similar to any standard policy. However, certain insurance carriers may also provide for your legal defense costs outside of the liability limit. That leaves more coverage to pay for legal judgments and settlements.
Individuals with significant assets have a lot to lose in potential lawsuits, often even being targeted for attempted suit. Liability insurance under these special policies can also provide personal injury coverage such as libel, slander and defamation which otherwise is typically only available through an Umbrella policy. That being said, some of the high value home insurance carriers have Umbrella limits as high as $50-100 Million.
With high value homes, a one size fits all approach will fall short. Our Bloomfield Hills, Michigan based insurance advisors are experienced in properly assessing and advising on the risks, exposures and liabilities a luxury home or estate may have.
Contact us at 248-362-1313 or submit the form below and we will be able to get you the policy that meets your needs.
