While a standard home insurance policy may provide a passable level of protection, high value homeowners may struggle to enjoy the proper peace of mind.
The additional coverage that high value homeowners insurance has to offer alleviates many of the more common concerns but there is a wide range of considerations that need to be made. By taking the time to do the necessary research, it has never been easier for a high-value homeowner to zero in on the coverage that they need.
The more protection that a homeowner obtains for their high-end properties, the easier it becomes to sidestep the typical problems. Thanks to this guide, homeowners are able to make the most informed decision possible and learn more about the most important aspects of these policies.
What Are The Most Common Reasons For Obtaining High-Value Policies?
If the home in question has a replacement or reconstruction value that is higher than the usual norms, this is a sure sign that the homeowner needs to choose a high value homeowners insurance policy. Homes that are worth over $750,000 typically qualify, while there are some policies that will only offer this form of coverage if the home is worth $1 million or more. Homes that have unique design elements also require additional coverage because they will drive the reconstruction costs even higher.
There are also properties that may qualify for these policies, even if the homeowner does not expect them to. Heritage homes can come with features that are not typically used in conventional construction practices and they require additional coverage. The same is true of homes that contain fixtures that are expensive and unique in nature. Does the homeowner have any expensive art, jewelry, rugs or a valuable wine collection? They will want to be sure to obtain a high-value policy.
When Should These Policies Be Considered?
Before potential clients take the time to speak with a company like Coastal Insurance Solutions, they will often find themselves struggling to make a final decision. When should the high-value homeowner take decisive action? While this is a common question, fortunately the answer is easier to come by than most would expect. Regular home insurance might seem like all that is necessary, but nothing could be further from the truth for high-value homeowners.
It is important to remember that the homeowner will not be considering the home’s purchase price or the value of the land when they are making these decisions. The value of the home as it relates to these policies is tied to the replacement costs. If the cost of rebuilding the home from the ground up exceeds the aforementioned costs, these policies need to be obtained.
What Do These Policies Encompass?
The expanded coverage limits provide homeowners with increased peace of mind, but it is important to know what these policies actually encompass. In addition to going above and beyond the aspects that are typically included in a standard policy. As the costs of building materials and manual labor continue to increase, this is something that needs to be taken into account.
High-value homeowners also tend to have plenty of high-end items that need to be protected and that’s where these policies become especially valuable. The increased liability coverage is a major plus as well. Those who have significant assets must take the necessary precautions so that they can remain protected. With high-value home insurance, the costs of legal defense costs and legal settlements are handled more easily because the homeowner can go above and beyond the policy limits.