Do You Need High-Value Home Insurance?
If you’re like most people, your home represents a safe haven for you and your family. A place where you can relax after work and spend leisurely evenings around the dinner table. And, your home is likely one of the most important financial investments that you’ll make during your lifetime. Given that, it’s important to carefully evaluate the homeowner insurance options that are available to protect your estate.
One thing to keep in mind is that home insurance varies greatly, which directly impacts your exposure to risk. It’s especially important for individuals who are buying higher-end, custom homes to select insurance policies that match the quality of their investments.
Specifically, homes that are in excess of $1 million in replacement value actually require a higher-tier of coverage classified as high-value home insurance. This type of coverage is customized to protect larger homes that are often built to spec.
Want to ensure that you are adequately insured? Here are five important aspects of homeowner’s insurance to keep in mind.
5 Facts About High-Value Home Insurance to Consider
(1) Domestic employees need to be covered.
Many high-value homeowners have workers who regularly perform work on their premise. Many times it may be a groundskeeper, nanny, or housekeeper. An EPLI or Worker’s Compensation policy may be worthwhile to consider. This is a great conversation to have with your insurance agent.
(2) Know the difference between “replacement cost value” and “market value”.
The primary difference between the two is that the replacement cost value takes into consideration real-time fluctuations in labor and materials. For example, if your home is damaged and there is a local surge in demand for skilled workers, the total replacement cost would likely exceed the normal market value. To protect your financial liability, consult your insurance provider to better understand how to fully protect your financial investment.
(3) Personal articles defined as inland marine need to be discussed and defined.
Many high-value homeowners own art, jewelry, firearms, fine wines, furs and collectibles. Take record of these items and know that coverage may not be available under a standard homeowners policy. A professional insurance agent will be able to evaluate these exposures and ask specific questions around these items.
(4) Review the all structures on your premise and how they need to be insured.
Most high-value homeowners have a pool and possibly a guest house. There are specific coverage parts carved out to meet the needs of this special niche. It is important to acknowledge that coverage for these items is not found under the building cost of the home. It has a specific listing in the policy called “other structures.”
(5) An umbrella policy can be added to protect your assets.
Take consideration of your assets and the potential exposures associated with personal risk. The cost for an umbrella policy is rather inexpensive and considered to be the best insurance buy. Search for an agent who has experience working with high-end clientele.
High-Value Home Insurance Coverage to Protect You and Your Family
Don’t make the mistake of building the home of your dreams only to find yourself underinsured. At the John Bailey Company, we are dedicated to helping families find the right home insurance coverage to protect their biggest investment. And, we offer a wide variety of insurance options. We can work with you to develop a personalized policy to address your specific needs. Contact us today for a customized policy quote. Call (865) 524-0785 to learn more about your personal insurance options.