Although several insurance companies offer home insurance policies, it’s quite difficult for owners of luxury and heritage homes to find policies that will comprehensively cover their property.
Statistics reveal that about 77% of American homes are insured under standard policies. Contrarily, few homes are under luxury home insurance policies which are customized according to a homeowner’s needs to cover their high-value assets.
But, what does the high-value home insurance policy entail, which factors are considered, and how do you shop for the cover? Here are the answers you might be looking for.
What Exactly Is A Luxury Home Insurance Policy?
Standard home insurance policies are not sufficient to cover high-value homes and their contents, and this led to the introduction of luxury home insurance. The term is used to distinguish a policy tailored to specific needs from the typical insurance plans.
Luxury home insurance products vary depending on the particular needs of the homeowner. The preferences, in turn, depend on the value of the home and the assets inside it, including jewelry, vintage wines, collectibles, antique pieces and other things whose market value cannot be readily determined. Your assets are professionally evaluated to ensure that the policy comprehensively covers them.
You will find most insurance companies offering the product to homeowners with a property whose value is equal to or above $750,000. Nonetheless, you can apply for the cover with a building worth $300000 and high-value assets. Langs High Net worth Insurance takes into consideration things like the non-conventional roof, exceptional design and construction, and special features such as guest houses, swimming pools, and outdoor living area.
Shopping For High-Value Home Insurance
Finding the appropriate luxury home insurance policy can be overwhelming, considering that there are several policies, carriers, and agents to choose from. The challenges deepen when you start getting into the specifics such as premiums, deductibles, coverage limits, and exclusions.
You should look for a company with impressive ratings and reviews as well as a strong complaint rating. Also, be sure to find a carrier with superior financial strength ratings. Such companies are likely to pay claims regardless of prevailing conditions.
As much as you are comparing various options, an insurance agent can help you make an informed decision. An insurance agent also assists in the management of your insurance account.
Assessing the Value of Your High-Value Property
When applying for high-value home insurance, the insurance provider will send a home inspector to evaluate the value of your building and other assets. The expert determines the worth of your property and documents all valuables present in the property, including the assets mentioned in the above section—not forgetting the furniture, exterior space, and green and elaborate roof.
You may request a second appraisal if you feel dissatisfied with the first one. Periodic property review and inspection are necessary to take into account any changes that may affect the value of your property.
Benefits of Luxury Home Insurance Policy
High net worth individuals pay higher premiums for high-value home insurance due to the valuable benefits they enjoy. First, the policy offers comprehensive coverage that protects your property, high-value possessions, and high-end lifestyle. Moreover, a luxury home insurance policy has higher special limits when compared to the typical policies.
Special limit of liability on an insurance policy stipulates the maximum amount of money you can be paid for particular items. With high-value insurance, you enjoy customized experience and VIP services such as quick customer service, 24-hour claims hotline, and immediate access to insurance professionals.
Exclusions of Luxury Home Insurance
Exclusion refers to a risk that is not covered by an insurance policy. Here are the standard exclusions of luxury home insurance.
- Damage due to war or terrorism
- Inherited personal property
- Damage due to conditions that occur gradually such as wear and tear, oxidation, rust, and warping
- Mechanical breakdowns and electrical faults
- Loss of metered gas
The list is not exhaustive, so consider consulting your insurance company for comprehensive information.
You are eligible for luxury home insurance if you have a high-value home and assets. Several things are taken into account during the evaluation, including valuable items in the house, the house’s design and construction, and other features present in the compound. Hopefully, the guide above provides useful information that will be of assistance to you when searching for favorable high-value home insurance.