Luxury Home Insurance: A Look Into The Details

Luxury Home Insurance Explained

If you’re like most financially successful people, then you might have a great deal of wealth invested in your home. In such situations, typical homeowner insurance policies might not be suitable.

If you happen to have a high value estate with valuables and expensive furnishings, you may require specialized insurance so as to cover your investments against any damage or loss.Insurance agents understand the exclusive need of high net-worth personalities and they can provide information on the available high value home insurance policies.

Because of the relationships that these agents establish with the top insurance companies, they can also provide you with a wide selection of policies at reasonable rates. Contact local agents today for personalized services and quotes that are tailored to meet your needs.

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What Constitutes a “High Value Home”?

When dealing with high quality home insurance, you have to know if your home is a member of this policy. A number of insurance companies always give a great value of home insurance to clients with homes bigger than $300,000 in their value. This only applies when the home is at least $750,000 worth.

Another group of insurance companies gives high value insurance to homes worth $1 million and above.

Luxury real eslate via 7th heaven properties

The prices and values of home insurance are different all over the country. Different insurance companies may differ in their insurance requirements. A company may ask for a high value than that of your home so as give a big coverage, while another can just offer coverage to your home.

Therefore, you have to do a good research before buying any policy. When your home value exceeds the usual caps of the available insurance carriers, you can discuss a better value insurance with an agent. This will help you get the insurance company that meets your standards.

Do Luxury Homes Need Special Insurance?

People with high-class homes tend to host guests and staffs at their places. These home owners have many luxurious items on display and therefore, are often more concerned with the loss as a result of theft than other home owners.

This is because their homes are a great target for thieves. In addition, when you own expensive luxury home stuff such as; fine woven rugs from Persia, a wine cellar with the Lafluer wine from France, and a stained glass window made in Italy.

an underwater view in the flooding interior

It’s always hard to convince insurer their values in case of a loss. Mostly if, they’re items that appreciate in value with time, rather than depreciating.

To make sure you’re covered fully depending on the real value of your item, you require a special insurance cover from a company that knows the actual value of your home. This will enable you to reconstruct a new home in the event of a loss.

How Is High Value Home Insurance Different?


This insurance gives all coverage given by all other home policies and even more. In cases where your whole home is destroyed, and you have to reconstruct a new home, High value insurance will enable you to rebuild it, to its initial state.

Also, a normal homeowner policy usually has caps on the contents being covered for various categories of items. For cases where your belongings are more than the stated amount, the home owner will have to buy a different insurance to cater the extra value.

But, you can still get full insurance on your home without having to buy different riders and that’s very economical. Additionally, a typical homeowner’s policy will have caps on contents coverage for

Coverage Options for High Value Home Insurance


These home insurance offers know that your home requires more coverage than what typical traditional policy covers. Therefore, they’ll provide various insurance options that will cover your needs fully.

1. Excess liability and umbrella liability coverage

When wealthy people cause accidents, the victims of the accident always see a way of getting a big amount of money.

Therefore having this insurance offers you a full coverage towards any lawsuits you may have to handle.

This includes paying fines, hiring a good legal advisor and any other restitutions needed.

2. Liability insurance to cover domestic help

For cases where you have domestic helpers, you’ll need extra coverage. This will help you carter for their medical expenses if they get injured while in your home.

Liability insurance to domestic help extends to your servants and their lost wage if they’re unable to work.

Also, it covers you in case you’re sued or named responsible for your employees’ injuries.

3. Flood insurance

 A typical homeowner insurance policy doesn’t give any cover towards damage as a result of floods.

Flood coverage offered by National Flood Insurance Program is always in all the insurance agent policies.

The advantage of High value home insurance policy is that it knows the NFIP do not offer coverage close to the sum required by this these home owners, therefore it includes flood insurance in their insurance package.

4. Identity theft insurance

Identity theft is a rampant crime these days. Anyone with a high net worth and a clean credit report are always target than the average people.

When you’re a victim of this identity theft, you may require legal representation to keep your good name from being dirtied.

Identity insurance will, therefore, cover to some extent, the cost you might incur if you become a victim of this identity theft.

Thief with a bar of iron via Safe Road Insurance

5. Kidnap and ransom insurance

Let’s hope, you’ll never require kidnap and ransom insurance. But wealthy people are always great targeting for many criminals as they it as a way to get cash.

This insurance will protect you in cases of such incidences and also carter for the hiring of an expert to negotiate. 

It's always the best way to protect your loved ones.

6. Coverage for vacation homes

A number of insurance companies permit you to add your other structures like vacation houses and pool houses.

By making this policy into being one, it’s very economical and you’ll save a lot and still have the full coverage you want.

7. Medical coverage for your pets

Many high value insurance companies will also cover your pet. The medical insurance cover for your pet will carter for its veterinary bills. Also, it will include boarding expenses in case the home became unlivable due to disaster.

Little girl laying down near the red kittens

How Do Insurance Companies Determine Property Values?

To determine the property value, the high value insurance company usually sends an expert to your home to survey, asses and document any high value contents. If you do not agree to the value assigned by this appraiser, you just ask for a 2nd appraiser to come and do a survey on your stuff.

Also, you can appeal by giving your own assessment.Your insurance value can change with time, like; Buy valuable items, redecorate your home or when you renovate it.

Therefore, the insurance company will have to do a periodic assessment. It’s always good to conduct your home insurance. It’s always good to conduct your home insurance cover review at least one times after every 5 years.

Let an Agent Assist You

If you have a high value home, you’ll want to ensure that you have the ideal overage in place so as to protect all your assets. Find an agent in your community today who will help you find the high value home insurance policy that will meet your unique coverage needs.

About the Author Maria Stark

I'm an undergraduate research assistant for Luxury Home Stuff. I help people to choose the best products and buy the right one.

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