As Home Value Rises, So Does Coverage Complexity

The more your home is worth, the trickier it is to make sure it and all of its contents are covered properly and that you are not paying too much premium.

If you have a high-value estate you will need specialized insurance to cover your property, assets, and liability risks. You may need multiple policies for full coverage.


High-value home insurance has broader coverage and higher limits than normal homeowner’s insurance policies.

It is designed for homes worth millions of dollars, typically containing state-of-the-art media equipment and technology, costly appointments and furnishings, extensive collections of art, and items of great value.

Coverage options

High-value home insurance companies will often work with you to tailor your policy to your needs. You can add certain coverages not normally available on a typical homeowner’s policy, such as:

  • Better dwelling coverage: These policies will reimburse for home repairs above the listed amount. This is crucial if you have a home with hard-to-find or imported materials. Some policies include an option to cash out if the home is destroyed. In those cases the insurer would make a payment, allowing the policyholder to rebuild somewhere else.
  • Better contents coverage: Some policies have high jewelry coverage of up to $150,000 and special coverage for antiques, art, and collectibles if they are broken or damaged.
  • Replacement cost: High-value coverage will usually include replacement cost coverage, which reimburses you for new items to replace damaged ones.
  • Flood insurance: High-value homeowner’s policy can often include flood insurance, as well as coverage for sewer backups.
  • Living expenses coverage: Most policies provide generous coverage for living expenses. The limits are either a stated dollar amount or a two-year limitation. Many insurers will allow you to include coverage for other structures, including pool houses and vacation homes.

Some final tips

It is expensive to cover theft or loss in a high-value home because the items in these properties are typically more costly.

Being in a gated community and/or having a security system in place can significantly reduce risks, and insurance companies often will discount your premium based on this.

Also, if you make any upgrades to your home, you should update your policy by having a new insurance appraisal.

You should also keep track of all your new purchases in terms of furnishings and technology.

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