High-Value Home Insurance Vs. Standard Home Insurance
If you own a high-value home, securing a high-value home insurance policy may be a wise decision. It offers additional benefits when compared to a standard home insurance policy and can cover your investment more completely.
The team at Akin & Associates in Decatur, Alabama, can help you decide if high-value home insurance is right for you. Contact us today to learn more.
Do I Need High-Value Home Insurance?
High-value home insurance is meant to provide additional coverages for individuals with large investments in their home and its contents. In general, high-value homes are those valued at $750,000 or more and the costs to replace these houses could exceed $1 million. Additionally, these homes may be of historical or architectural significance or may be built from materials that are difficult or costly to replace. Your agent can discuss if your home is eligible for coverage under this type of policy and if it best suits your needs.
What Makes High-Value Home Insurance Different?
A high-value home insurance policy is generally more robust than a standard policy and offers higher limits. Examples of this include the following:
- Extended replacement cost coverage or guaranteed replacement cost coverage—Repairing or replacing a high-value home can be expensive. Standard policies may make the policyholder pay for the costs exceeding the policy’s limit. However, a high-value home insurance policy may include extended replacement cost coverage, which helps pay for a percentage of that amount, or guaranteed replacement cost coverage, which may cover the full expense. This can reduce the policyholder’s out-of-pocket burden.
- Additional liability coverage—A high-value home insurance policy may provide higher liability limits than a standard policy. It may also cover claims of defamation.
- Added coverage for personal possessions—High-value home insurance generally includes replacement value coverage for personal belongings. This coverage is also typically offered on an open perils basis, meaning causes of loss are covered unless they are specifically excluded in the policy.
- Living expenses after a claim—This aspect of a high-value home insurance policy may help cover the cost of meals, hotel stays and other living expenses if you are forced to move out of your home while it’s being fixed following a covered event. These allowances may exceed what you would receive under a standard home insurance policy.
- Increased medical payment coverage—This may help pay for your guests’ medical bills if they are injured while at your home.
Coverage for water backup, identity theft and business property may also be available. Additionally, high-value home insurance may come with other perks, such as appraisal services and loss prevention consultation. Contact your agent to discuss terms, limits and exclusions.
Contact Us for More Information
The agents at Akin & Associates are ready to discuss high-value home insurance. Contact us today for more information and to get a personalized quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.