Not all home insurance is created equal. Among the array of insurance options for homeowners is one called high-value home insurance. Also known as luxury home insurance, high-value insurance is a bundle of services designed specifically for people with high-value homes.
So, what constitutes a high-value home? And what exactly does high-value insurance offer that typical homeowners insurance doesn’t? Below, we’re breaking down what high-value homeowners insurance is, which services it includes, and who should consider it.
High-value homeowners insurance is a type of homeowners insurance that protects costly properties. Think: luxury apartments and condos, mansions, historic homes, architecturally significant homes, and homes with expensive or unique materials or structural features.
To qualify as a high-value home, a home typically has to be worth at least $750,000, though that’s just a baseline; many high-value insurers only insure homes worth $1 million or more. Some insurance companies refer to a home’s worth as its replacement cost value. If a home has a replacement cost value of $1 million, for example, that means it would cost at least that amount to “replace” the home by building it back from the ground up.
While standard homeowner insurance generally covers homes up to $2 million, high-value home insurance usually covers homes starting at $1 million up to $100 million. High-value home insurance generally offers higher coverage limits and a wider range of services than standard homeowner insurance. That’s because high-value homes aren’t just more expensive; they also tend to come with more insurance complications, like pools or in-home employees.
There are two key factors that set high-value home insurance apart from the standard type:
The primary appeal of high-value home insurance is the increase in coverage limits. Higher limits mean that not only will you have greater coverage on your property as a whole, but you’ll also have more coverage on pricey individual items within the home, such as artwork, cash, jewelry, silverware, electronics, currency, firearms, and antique furniture.
Beyond higher limits for your home and your belongings, high-end home insurance also offers extended coverage for things standard home insurance either doesn't provide or has limited coverage options for. For example, depending on the high-value insurance provider, you may be able to get higher limits for things like:
While there are fewer home insurance exclusions with high-value insurance, there are some you should be aware of. The most common exclusions with a high-end homeowners insurance plan include:
Keep in mind that exclusions vary depending on the insurance provider, so it’s a best practice to ask your prospective provider for a detailed breakdown.
True to its name, high-value home insurance is more expensive than standard home insurance. The exact cost of a home insurance plan depends on your home’s location, your policy type, the insurance provider you choose, and your personal claims history.
However, the average annual premium for standard home insurance with a $250,000 dwelling coverage is $1,393 per year (or roughly $116 a month). On the other hand, the average annual premium for dwelling coverage above $750,000 ranges from roughly $1,800 to $2,700, depending on the provider.
High-value home insurance is best for people who own homes worth $750,000 or more, have a lot of assets they want to be protected, and generally want more comprehensive coverage in case of an emergency or loss. High-value insurance is also good for people who have a high net worth, and may be at greater risk of things like ransom or identity fraud.
You should consider high-value home insurance if:
If you’re interested in high-end insurance, you might also be interested in other types of luxury insurance, including:
As a homeowner, it’s critical to have reliable homeowners insurance, but if you have an expensive or unique home, you might have to take your insurance up a notch. High-value home insurance can give you increased limits, expanded coverage options, and policy perks to protect your property and give you valuable peace of mind.
If you’re curious about what type of homeowners insurance you need, check out our guide to finding home insurance that works for you.
Here are some frequently asked questions about insurance for high-value homes:
The cost of home insurance is based on a handful of different factors, including a home’s market value or replacement cost value, the home’s location, the home insurance provider, the home insurance plan you choose, and your personal credit history.
The cost to insure a mansion varies greatly depending on where that mansion resides and what it’s worth. Insuring a mansion in Utah, for example, will typically cost less than insuring a mansion in California. Instead of looking at a home’s size, it’s better to consider the home’s location and monetary value.
Home insurance on a $300,000 home usually costs between $1,000 a year and $1,500 a year, depending on the provider. To give you an idea, the average annual home insurance premium for $250,000 of dwelling coverage is $1,393 a year.
The cost of homeowners insurance for million-dollar homes varies depending on the insurance provider, the plan you choose, and your personal credit history. However, annual premiums for high-value home insurance with dwelling coverage of $750,000 generally run between $1,800 and $2,700 a year. Getting coverage for $1 million may cost more than that.
Yes, you can insure your house for more than it’s worth. The market value of your home may be lower than the replacement cost value (what it would cost to rebuild in the event of a major loss).
No, not every home insurance provider offers high-value insurance; only high-end insurance companies offer high-value home insurance.
There are several factors to consider when choosing a high-end home insurance provider and a high-value home insurance plan. Make sure you take into account:
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