Individuals here in the Greensboro and Guilford County area owning homes valued in excess of seven hundred thousand dollars are likely candidates for something known as high-value or luxury home insurance. This includes a select group of clients who require more homeowner’s insurance coverage than is available with a standard policy. High-value coverage is typically designed to be unique to your specific home and family.
High-end homeowners insurance, typically written for our most affluent policyholders, offers more comprehensive coverage and higher limits than standard policies, due to the unique needs of those particular clients. Someone living in a multi-million dollar estate, for example, will often have expensive artwork, jewelry, silver, firearms, furs, antiques and any of a variety of collectibles such as coins or stamps. Most standard homeowner’s policies have limits regarding how much they’ll pay out in the event of a total loss. High-value insurance looks at the value of your personal belongings individually and fully covers losses.
High-Value Insurance Specifics
It’s estimated that approximately 40% of high-value homes are under-insured. Many times, homeowners are carrying homeowners coverage that’s only meant to cover the amount of their mortgage payoff or the market price of their home were they to sell it in today’s market. In many cases, this amount of coverage would not be sufficient to rebuild in the event of a total loss, especially when custom, specialty construction would be required to build a home back to its original standards.
Often, a standard homeowners policy not only doesn’t guarantee full repair or replacement of a destroyed home, but if you elect not to rebuild it won’t pay off at all. High-value insurance typically covers full repair or replacement of a total loss but, in the event you choose not to rebuild, will pay out the equivalent of the replacement cost in cash.
High-value insurance usually has generous basic coverage and extras that standard policies don’t cover such as protection against backed up sewers or drains. They also provide generous, often unlimited, coverage of living expenses while your residence is unlivable.
And Even More
High-value coverage will also offer protection against identity theft, enhanced personal liability protection and high-dollar umbrella coverage. For those clients employing domestic workers such as nannies, housekeepers, gardeners, drivers, etc., you may need to consider employment practices liability insurance. This protects you from alleged offenses relating to employment such as discrimination, sexual harassment or wrongful termination.