On average, there are more than 300,000 home structure fires every year. Because of things like fires, floods, and other damages, homeowners are wise to purchase insurance that can cover their homes in case of disaster. But what if you're a High Net Worth Individual with a high-value home?
Does insurance work the same for high-value homes as it does for regular homes? What are some things you need to consider with your insurance? Read on for everything you need to know about insuring your high-value home.
Who Counts as a High Net Worth Individual?
First of all, what is a High Net Worth Individual, or HNWI? Essentially, an HNWI is a person with assets over a certain threshold. This threshold varies somewhat, but the most common cutoff is $1 million. These are the country's millionaires!
One benefit for HNWIs is that many of them have expensive, high-value homes. However, one potential drawback of this is that they have more to lose if something happens to their home. That's where high net worth home insurance policies come into play.
What Is High-Value Home Insurance?
This type of insurance policy is specifically designed with high-value homes in mind. Although the exact cutoff may vary from company to company, the typical value of a high-value home is $750,000 and up. However, some companies require a minimum home value of $1 million to get this special policy.
This means that if your home is worth more than $750,000, you likely qualify for this type of policy. Although it's similar to regular insurance, homeowners insurance for high-value homes is designed for the unique needs of expensive homes. This makes it a far better option than a regular policy, particularly because these special policies include added perks and benefits to help homeowners.
Isn't a Regular Insurance Policy Just as Good?
Unfortunately, regular policies often don't cover the same things that a high-value homeowners policy does. These policies often have lower caps on coverage, fewer features, and are generally not suited for the needs of more expensive homes.
For example, most insurance companies don't include guaranteed replacement cost in their policies. This is the best type of reimbursement you want in case your home is damaged or destroyed, but you're unlikely to get it with a regular policy. However, many high-end policies often include this level of replacement cost.
There are also more endorsements with these special policies. A regular policy may not have much coverage for things like earthquakes or flooding, both of which are common in areas with many expensive homes like California or Florida. You aren't sufficiently covered by these events if you go with a regular policy.
What Are the Benefits of These Policies?
The first and biggest benefit of high-value homeowners insurance is complete, high-level coverage. With one of these policies, you'll ensure that your entire home is completely covered in case of damage or accident. A regular homeowners policy often caps out at a certain amount, which is detrimental if that limit is less than the value of your home.
Second, these policies offer expanded coverage that takes care of more than the basics. Have you thought about what would happen if your home became unlivable for a time because of damage? You might have to move out and live in a hotel, and you'd probably see a temporary rise in your living expenses.
These policies were built with those needs in mind. Oftentimes, a high-end policy will pay your living expenses while you're stuck out of your home. This then becomes one less thing you have to worry about.
High-value home policies also often include identity theft and loss prevention measures and coverage. Many people with expensive homes are seen as high-profile targets, and many scammers and thieves target these homes or their owners. That's why you want insurance that can help take care of you in situations like this.
Finally, many insurance companies offer HNWIs other types of expanded insurance in addition to their home coverage. Things like insurance for a second home, luxury, and collectible insurance, or even umbrella and liability insurance are all vital additions to your homeowner's insurance. And when you buy high-value home insurance through a company, they'll be happy to help you get your other insurance needs taken care of as well.
How Can You Get a High-Value Home Policy?
Your first step should be searching for an insurance company that specializes in high-end personal insurance. Not every company will carry more than the standard homeowner's insurance, so your options will be a little more limited. But the end result will be worth the search.
You don't want to end up with a regular policy that doesn't cover everything in your home. You never know when disaster might strike, and you want the peace of mind to help you handle it. That's why it's critical not to settle for the basics. Many high-value home insurance companies offer a lot of policy customization. This will allow you to choose the aspects you actually need, all while saving money by not buying the parts you don't need. They will also sometimes lump in other types of insurance such as luxury, auto, and umbrella insurance, giving you better rates to protect your belongings across the board.
Whatever company you end up going with, make sure they're willing and able to help take care of all your needs. Companies like Highline Risk Solutions offer some of the best high-value home insurance around, giving you great, personalized care whenever you need it. With them, you can rest assured that all of your issues will be taken care of.
Learn More About High-Value Home Insurance!
If you're a High Net Worth Individual, you almost certainly have a home worth more than the average. That means your insurance needs to be above average as well.
If you'd like to learn more about the types of insurance you should get as an HNWI, or you're interested in upgrading your home's insurance, contact us! We're happy to help you figure out your insurance needs and ensure your coverage gives you the peace of mind you deserve.