Homeowners insurance protects your home and personal belongings against common hazards, ranging from theft to fire and everything in between. But if you own a high-value home with high-end appliances and valuables, a standard homeowners insurance policy won’t offer the higher coverage limits and other benefits you need to remain fully covered against potential damages.
High-value home insurance features several unique perks and benefits alongside higher coverage limits to provide more comprehensive protection for high-net-worth individuals. If you live in a home with a high replacement cost, it’s important to consider purchasing this coverage to ensure your home and assets are fully covered. To help you determine whether or not this coverage is for you, let’s take a closer look at what high-value home insurance is and what it covers.
If you’re ready to request a quote, reach out to FIB Insurance today. Our expert agents are ready to help you find the best policy for your needs.
What is High-Value Home Insurance?
High-value home insurance is designed for homeowners with high-value properties. High-value homes are those with replacement cost values (RCVs) of at least $750,000. If your home’s RCV is lower than this, you likely will not qualify for this type of policy. Keep in mind that your home’s RCV is how much it would cost to rebuild your home—it is not the same as your home’s market value.
If your home’s replacement costs do exceed this amount, a traditional homeowners policy will typically not offer enough coverage to replace your home and personal belongings in the event of a disaster. It’s also important to keep in mind that these policies are typically more expensive than standard policies, as they offer higher coverage limits and additional perks.
High-Value Home Insurance Coverages & Perks
High-value home insurance offers the same six basic protections as traditional homeowners insurance policies. This includes dwelling coverage, other structures coverage, loss-of-use coverage, personal liability coverage, personal property coverage, and medical payments coverage.
On top of these protections, high-value home insurance offers several benefits and features that provide more comprehensive protection for high-value homes:
High-value home insurance stands out from standard home insurance policies primarily due to the higher coverage limits and expanded protections that it offers.
Whereas standard home policies cover your home at its replacement cost value and personal property at its actual cash value, high-value policies cover both at their replacement cost values. Moreover, high-value policies protect your home and personal property against all risks—not just the 16 named perils found in standard homeowners insurance policies.
High-value home insurance also typically offers unlimited additional living expenses while your home is being rebuilt after a disaster, higher medical payments coverage limits, unlimited debris removal, and higher limits for valuables, like art and jewelry.
Water Backup Coverage
Standard home insurance policies do protect against certain types of water damage, but water damage due to sewer backups typically is not included. High-value home insurance policies, however, do offer water backup coverage—which is also called sewer and pipe backup coverage—to protect your home against possible water damage.
Identity Theft Coverage
Identity theft can be devastating, and high-net-worth individuals with valuable assets stand to lose a lot if they are targeted by an identity thief. High-value home policies often include identity theft coverage to help you secure your accounts and recover your identity if it is stolen.
Guaranteed Replacement Cost Coverage
Most high-value home insurance policies offer extended or guaranteed replacement cost coverage, which increases your home’s insured value. Extended replacement cost coverage increases your dwelling coverage limit by 25% to 50%, meaning if your home is damaged, your insurance will cover up to 125% to 150% of your home’s rebuild cost.
Guaranteed replacement cost coverage means that your insurance company will reimburse you for the total cost to rebuild your home to its original condition before any damages occurred. This means that even if your home’s rebuild costs exceed your coverage limits, your insurance will cover the repair costs.
High-value policies offer several other perks that make it stand out from standard policies, including:
- Free home appraisals
- Deductible waivers
- Cash settlements
These perks aren’t found in traditional home insurance policies and provide extra value to those with high-value homes.
How Much Does It Cost?
You can expect your policy to cost more than a standard homeowners policy due to the expanded coverages and added benefits, but the specific cost will depend on several factors, including:
- Home age
- Credit score
- Claims history
- Additional coverages
In general, you can expect your annual high-value home insurance premium to exceed $3,500.
Request a Quote
For high-value homeowners, standard home insurance will typically not offer sufficient coverage to protect their homes and valuables. If your home’s replacement cost exceeds $750,000, you may need high-value home insurance to ensure you are covered in case of a disaster.
Contact FIB Insurance today to get a custom quote and learn more about high-value home insurance in Miami, FL, Pembroke Pines, and the surrounding areas.