What Is High-Value Home Insurance and Is It Worth It?

family in backyard of high value home

 Klaus Vedfelt/ Digital Vision / GettyImages

High-value home insurance products provide some of the most comprehensive insurance packages on the insurance market today and is a top choice when you qualify for it. High-value home insurance is tailored to provide insurance coverage for buildings of higher than the average value, such as heritage homes, as well as homes with special features or design elements.

High-value home insurance is not just for homes but can be for high-value condos and renters as well.

High-value home insurance products are based on:

  • Reconstruction value of the property (not real estate value)
  • Lifestyle of the people who live there.

Choosing the best home insurance is an important consideration to be able to maintain your lifestyle when you have a claim. High-value home insurance has features to make sure you are able to do so.

family in backyard of high value home
What kind of homes need luxury or high valued home insurance? Is it for you? This BBQ looks pretty basic, but look at the details and features of the home behind it. This family may be better served by high value insurance.  Klaus Vedfelt/ Digital Vision / GettyImages

If You Should Get High-Value Insurance

Here are examples of things that high-value home insurance is worth considering for:

  • Your home is worth $750,000 to $1,000,000 or more.
  • Your home or condo has design elements that are unique, or you have used an interior designer to decorate your home, or an architect designed your home or condo.
  • Your home is a heritage home or is of older construction with features not found today in common construction materials.
  • You have high-value fine arts, rugs, collections, jewelry, wine or other special items. Standard home insurance does not cover items like fine arts and antiques adequately as part of the standard coverage.
    home with interior design elements for insurance
    Even though your home may be simple if the design elements required an interior decorator or are elegant and use special materials high value home insurance is a good idea to look into.  tulcarion/E+/GettyImages
    • You are more interested in quality than quantity and are willing to pay for value. The items you choose to decorate or put in your home would not be found at standard stores.
    • If your roof is non-standard, for example, made of clay, tile, copper or metal, a green roof, or has an elaborate design.
    • If you have a green home or have invested in environmentally friendly design and construction or heating.
    • If you have special features on your property, such as outdoor living areas, guest houses, swimming pool areas, or special landscaping.
      Home exterior with beautiful landscaping and outdoor living area
      Sunrooms, windows, outdoor landscaping and materials like natural stone or brick used to create outdoor living areas can make the difference between the need for a high valued home policy and a standard home policy to make sure you get properly compensated in a claim. Perry Mastrovito/Image Source/ GettyImages

      Examples of Advantages of High-Value Home Insurance

      • Flexibility and convenience: Full cash value payouts without depreciation basis of claims settlement for both the home and personal contents in your home.
      • Higher policy limits for money, jewelry, landscaping, personal contents, business use items.
      • Coverage for items like fine arts, antiques or wine collections.
      • Coverage for increased costs of construction after a claim due to bylaws.
      • Additional living expenses on many high-value home or condo and renters policies are unlimited. This allows you to live in a place that is up to your standard of living for as long as it takes to rebuild your home or while repairs are being done without a hassle. It also allows time to get the right architects and professionals involved to rebuild your home just as it was before. Standard home insurance limits additional living expenses.
      • Complimentary home inspection to verify the value of your home and give you a guaranteed replacement value. This also provides the insurance company an opportunity to help you properly document your home and make any suggestions about items of high value.
      • Insurance for sets and pairs on standard home insurance may limit the amount payable in a loss to the lost item, not the whole set. High-value home insurance may replace the pair or set even if only one part of it is lost. Similarly, if you have a partial loss, like a fire in only part of your kitchen, for example, and only half of the room is damaged, standard insurance does not necessarily have any obligation to replace the other half of the kitchen that is undamaged. When you have a high valued home your design needs to match fully. You would not be able to redo half a kitchen or half a floor and end up with a similar look. High-value home insurance companies will consider the importance of the design elements and will do their best to make sure everything comes out "matching" even if it means replacing things that weren't damaged just to get your "look" right.
      • Higher limits of liability insurance and excess liability to protect your liability worldwide
      • Perks and extra coverages are common add-ons with many high-value home insurers, Chubb, for example, offers the possibility of cyber protection.

      Paying More For a High-Value Home Insurance Policy

      Costs of a high-value home policy are usually more expensive than a standard home policy because:

      • It provides more extensive coverage.
      • It is created to provide a personalized experience for clients in claims and protect your lifestyle.
      • It has higher special limits than standard policies.
      • It offers top of the line service, it is a "VIP" type of product that you will pay more for.

      One of the questions that can help put the cost of high-value home insurance in perspective is to compare it to how you choose to spend money in your personal life. Choosing insurance is a lot like how you buy your shoes or eat out. When you look in your closet, do you see a bunch of shoes you got for under $100 or do you have shoes worth hundreds of dollars a pair?

      If you went out to dinner, would you skip ordering wine, or only order the house wine, or are you the type of person that will spend a couple of hundred dollars going out to a nice dinner and order a la carte? The difference between the cost of high-value home insurance and standard insurance is probably similar to the cost of one of a nice dinner out every month.

      If your things aren't average and if you want the insurance company to go above and beyond when handling your claim, then buying high-value home insurance, renter or condo insurance is the way to go. Standard insurance that provides "average coverage" won't protect you or your lifestyle properly in a claim.