Should You Buy High Net Worth Home Insurance?

High net worth homeowners insurance is an additional coverage available to those with high value homes or an otherwise significant amount of assets. High value home insurance typically has greater limits and extensive hands-on services. This policy can offer higher policy limits, additional benefits and services, and an overall higher level of expertise and care.

What’s Covered?

The most significant aspect of high net worth home insurance is that it allows people to opt for expanded coverage limits for both property as a whole, and individual items. Expanded coverage limits are especially common for contents subject to specific limits, like jewelry, art and cash. For instance, a standard home policy might have an overall policy limit on an individual item, while high net worth homeowners insurance policies will provide higher limits without any special endorsements required and may also offer extra endorsements for natural disasters, such as flooding and earthquakes.

High-Value Home Insurance Explained

Home insurance for high net worth individuals also often includes a number of other high limits, such as guaranteed replacement cost coverage, which pays for the full cost to repair or replace your high value property, even if doing so would exceed policy limits. Certain cases involve cost of both labor and materials, which are likely to raise due to high demand, making it possible to exceed standard limits, but with guaranteed replacement cost, you are not responsible for the extra cost.

Some insurance coverages to consider as the owner of a high-value home:

  • Replacement Cost
  • Extended Replacement Cost
  • Cash Settlement
  • Replacement Cost Personal Property
  • Sewer & Drain Backup
  • Coverage for Collections of Jewelry, Art, Wine, Antiques and Other Valuables
  • Temporary Living Arrangements
  • Higher Liability Limits
  • Risk Consulting

The Importance of Specialized Coverage

Some of these higher limits offered to high value homeowners provide benefits that aren’t available at a regular insurance company and may be invaluable to high net worth individuals.

The cash settlement benefit will assist in the event of a total loss and allows you to use the money received however you want (not just to rebuild the home).

The risk consulting portion will typically involve an onsite inspection at your home, helping you select the right level of coverage, as well as offer risk management methods.

Another key benefit of securing this protection is the highly customized service and higher level of overall care you will receive. For instance, if your home is uninhabitable due to a natural disaster, the temporary living arrangements portion of this insurance allows your insurer to book you a room at a hotel that’s still within driving distance of your children’s school and cover these costs.

Plus, these insurers are generally more experienced with high-end homes and furnishings. You cannot put a dollar value on this knowledge, but there is great value in dealing with an insurer who is experienced and comfortable handling high-end materials and can appraise and care for your prized possessions.

About Transparity Insurance Services

Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.