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While basic home insurance covers most homes, those with properties valued at $750,000 or more require high-value home insurance.
Before you know if high-value home insurance is right for you it’s important to assess your home’s true value. It might surprise you to know that it isn’t just the purchase price or the value of the land your home is on that determines its value.
As with traditional home insurance, the value of your home is determined by the amount of money it would cost to rebuild it and restore it to its prior condition. This is what is known as the “replacement cost” and it includes both the interior and exterior of the home.
Many things differentiate high-value home insurance from traditional insurance.
Additional items covered include:
Broader and more inclusive protection for your luxury items is provided through both itemized and blanket coverage in HIGH VALUE HOME INSURANCE policies.
After an application is filed for high-value home insurance your home will be inspected by the insurance company. This is done to determine the replacement cost as well as the amount of coverage you will need. This inspection will determine if you qualify for high-value home insurance.
Several things determine if you own a high-value home.
When a home is damaged or destroyed the insurance policy provides you for losses in one of two ways depending on the type of policy you have.
When it comes to high-value home insurance it is better to have RCV coverage. While it costs more upfront you will get significantly more coverage. This means you will pay less out of pocket if you file a claim. With ACV coverage your payout will most likely not be enough to cover the entire cost of the damage to your home and you will have larger out-of-pocket expenses.
Another thing to consider when determining your coverage needs is if your home contains valuables that exceed coverage limits, like collections or antiques. If it does it may be necessary for you to purchase a scheduled personal property endorsement.
With high-value home insurance there is more to consider than with a traditional policy.
When purchasing luxury home insurance, you are given the option to select different types of add-on coverage which helps to create truly customized coverage.
Some add-on coverage types available include:
Here are the key take-aways if you are considering high-value home insurance
If you live in an ultra-expensive home you will benefit from a high-value home insurance policy because it offers higher coverage limits, unlimited additional living expenses coverage, and numerous add-on coverages. Insurance carriers that offer high-value home insurance usually provide a higher level of customer service. However, it’s important to remember that while you will pay a premium for this coverage and its “extras”, you may be able to save a considerable amount of money should you ever need to file a claim.
At Lofton-Wells Insurance, we have the skill and experience to guide you in obtaining coverage for your luxury home. We go beyond your needs and expectations to protect every branch of your life. In doing this we can provide the highest quality and most appropriate coverage for our clients. Contact us today at 901.388.7283 or fill out the form below!