High Value Home Insurance: Your Really Complete Guide


Learn about High Value Home Insurance from A-Z including key topics like structure, enhancements, exclusions, cost factors, premium estimates and why it's crucial to protect your luxury residence.

High Value Home Insurance is an essential risk management tool for affluent homeowners. This specialized coverage provides unique protections for valuable properties and their important contents.  Even though this coverage is critical to consider, many families are uncertain about the significance of these programs and how they differ from typical home insurance policies.

Our goal in this blog is to help make sure that your confusion (about the insurance jargon!) doesn’t get in the way of understanding the importance of obtaining this kind of protection. Individuals who own valuable properties with significant assets need to strongly consider obtaining high value home insurance.

Our insurance agency, Notable Risk, taps into 20 years of experience in risk management (as well as JD and MBA degrees) to offer unparalleled benefits to our clients. We would be happy to assist you.

Please click here to schedule an introductory meeting or call us at 888-897-4815

Table Of Contents:


Understanding High Value Home Insurance

When you talk about protecting considerable property, high-value home insurance surfaces as an important consideration.  This specialized form of homeowners policy is crafted to cater to high-net-worth households with homes that exceed a typical value threshold. Oh, and it’s not really “market value” — more on this in a minute!

The standard homeowners policy often falls short of providing adequate coverage for luxury properties due to their elevated rebuild costs and valuable contents. This coverage gap calls for a more comprehensive solution like high-value home insurance which offers increased limits (in some cases in the many millions of dollars), broader coverages, and some additional policy perks.

What Constitutes “High Value”

We mentioned earlier that “market” value is not the key determinant when insurance enters the picture. Determining what is considered “high value” can vary depending on the carrier and their individual guidelines. Generally, however, a high value home refers to properties with a higher than average rebuild or replacement costtypically $1.0 million or greater. This includes luxury homes, custom-built residences, historic houses, and properties with unique architectural features or very expensive materials.

In addition to the property itself, high value home insurance also takes into account the valuable possessions inside the house. Although limitations may apply, these may include fine art collections, antique furniture, jewelry, designer clothing and accessories, rare books, high-end electronics, and golf equipment. Ultimately, understanding what is meant by “high value”, and then what steps have to be taken with insurance, is crucial to protect both your property and valuable possessions in case something unfortunate were to occur.

Specific Coverage Parts Included in High Value Home Insurance

The structure of high value home insurance follows a similar pattern to standard homeowners policies, but with enhancements that cater specifically to the needs of luxury homes and their owners. These core coverage parts include so-called Coverages A -F.  Insurance jargon aside (sorry!), here is a look at each portion of the policy in detail.

1. Dwelling Protection (Coverage A) 

When it comes to protecting your dwelling, also known as Coverage A, high-value home insurance offers comprehensive coverage for homeowners. This type of insurance is specifically designed for homes with a higher replacement cost than average. Unique luxury home features can include things like custom-built additions, high-end finishes and fixtures, specialty roofing materials (such as slate or copper), ornate architectural details, imported materials, advanced security systems, and extensive restaurant-grade stoves and other appliances. These features are often what make high-value homes stand out from standard properties but can also increase their replacement costs.

Dwelling Protection provides coverage for the structure of your home itself, including its foundation, walls, roof, and other attached structures such as garages or decks. In the event of damage caused by covered perils like fire, windstorms, or vandalism, this coverage will help cover the costs of repairing or rebuilding your home — taking into account the unique features listed and many others.

These policies often include high coverage limits to ensure adequate protection in case of total loss. Standard homeowners insurance companies have maximum amounts that are often insufficient to cover these properties. Additionally, high-value home insurance typically includes extended replacement cost coverage — an important extra cushion above the standard policy limits based on a percentage (usually an added 25-50%) of your dwelling coverage amount.  Another unique feature geared towards high-value homes is guaranteed replacement cost coverage. This goes even further and ensures full cost reimbursement regardless of whether rebuilding exceeds policy limits, providing an added layer of financial strength by mitigating inflationary increases over time.

2. Detached Structures (Coverage B)

When it comes to insuring your high-value home, it’s important to consider coverage for detached structures that are not directly attached to your main dwelling, such as garages, sheds, barns, or pool houses. They are not included in your Dwelling Coverage.  So, if your detached garage is damaged or destroyed due to a covered peril like a fire or theft, you can file a claim and receive compensation for repairs or rebuilding costs, subject to your Detached Structures limit.

The coverage limit for these structures on your property is usually a percentage of the overall insured value of your home (so, it’s based on Coverage A). It’s essential to ensure that this limit adequately reflects the value of these structures on your property. If they have unique features or expensive materials used in their construction, you may need additional coverage options.

To determine the appropriate amount of Coverage B needed for your high-value home insurance policy, you need to consult with an experienced insurance agent who specializes in luxury homes. By ensuring adequate Coverage B for detached structures within your high-value homeowners’ policy, you can eliminate a typical coverage gap and rest assured that you have protection for these valued structures on your property.

3. Personal Property (Coverage C) 

Protecting valuable items is an essential component of high value home insurance for your belongings, such as furniture, electronics, clothing, and other personal items. To generalize, the things that move in and out of your house — i.e. they are not attached to it. With high value home insurance, not only is your dwelling protected but also the contents within it — typically, even when they move outside of your home. In case of theft, fire damage, or other covered perils, Coverage C will help reimburse you for the cost of repairing or replacing your personal property.  Perhaps one of the most critical features for your content is replacement cost coverage. This protection ensures that you receive enough money to replace your valuable belongings with new items of similar kind and quality, without factoring in depreciation!

It is essential, however, to understand that certain valuable items such as jewelry, artwork, antiques, and collectibles may have lower sub-limits or narrower coverage for specific causes of loss. To ensure proper protection for your valuable possessions against accidents, thefts, and natural disasters such as floods or earthquakes, it may be necessary to obtain additional endorsements or separate policies.

To guarantee that you have adequate coverage limits for all of your personal belongings, including those with higher values, it is advisable to conduct a thorough inventory and appraisal of these items. This will help determine their worth and assist in obtaining the appropriate coverage structures and limits. Ultimately having comprehensive Personal Property coverage within your high value home insurance policy offers peace of mind knowing that both your dwelling and its many contents are appropriately protected against unforeseen events. Do not underestimate how rapidly the overall value of your personal belongings in your home can increase to a significant monetary amount for replacement.

4. Loss of Use (Coverage D) 

This is another lesser-known, but important component of high value home insurance, that caters to individuals with unique lifestyles. This coverage provides financial protection if your home becomes uninhabitable due to a covered loss, such as fire or water damage. And, unfortunately, this happens to even careful homeowners. It helps cover additional living expenses (or ALE in insurance jargon!), including temporary housing and meals, while your home is being repaired or rebuilt.

Valuable homeowners often have specific needs and preferences when it comes to their living arrangements. They may require more significant accommodations or specialized amenities during the period of displacement. Loss of Use coverage considers these unique lifestyle factors and ensures that you can maintain a similar standard of living even if you are temporarily forced out of your home. In addition to providing financial support for alternative housing, loss of use coverage can also help cover other related costs like transportation expenses or storage fees for personal belongings.

This comprehensive protection allows homeowners to focus on getting their lives back on track without worrying about the added financial burden caused by moving out and the rebuilding delays that are all too frequent. This is an area where insurance can help avoid out-of-pocket costs of $100,000 or more. So, if you own a luxury home and lead a distinctive lifestyle, it’s crucial to ensure that your insurance policy includes broad additional living expenses reimbursement.

5. Personal Liability Protection (Coverage E) 

This part of a luxury home insurance plan provides essential financial protection for homeowners in case they are held legally responsible for bodily injury or property damage to others. In a high value home insurance policy, Coverage E typically offers higher limits (very important!) compared to standard homeowner’s insurance policies.  It protects homeowners from potential lawsuits and claims that may arise due to accidents occurring on their property or caused by their actions. It helps cover legal fees, medical expenses, and potential settlements or judgments that may arise from such incidents. Arguably, Coverage E is valuable simply due to the legal fees reimbursement which can quickly escalate into the hundreds of thousands of dollars.

For example, if someone were to fall on your property due to a loose railing and sustain injuries, you could be held liable for their medical expenses and other damages.  Personal Liability Protection would help cover these costs (including legal fees!) up to the specified limit of the policy. Additionally, this coverage extends beyond incidents that occur within your property boundaries. If you accidentally cause damage or injury while away from home (e.g., during a vacation), Personal Liability Protection can still provide coverage. Pause for a minute and give some added thought to this point — “away from the home” — as families are not often aware of this important protective feature and its expansiveness (after all, it’s your home insurance so the added benefit is a valuable surprise to many).

Homeowners who possess valuable assets should, promptly (note: this is an important coverage!), consider acquiring high-value home insurance that includes comprehensive personal liability protection with significant coverage limits. Numerous insurance companies in this specialized field offer substantial liability limits, and they may also provide umbrella policies to further extend these amounts. The elevated limits provided by this type of coverage provide greater safeguards against potential major legal liabilities that may arise.

6. Medical Payments (Coverage F) 

This cost reimbursement is a type of insurance coverage that can be included in high value home insurance policies. It provides financial protection for medical expenses incurred by individuals who are injured on the insured property, regardless of who is at fault. This coverage typically includes payment for necessary medical treatments, such as hospital stays, surgeries, and doctor visits. It may also cover ambulance fees, X-rays, prescription medications, and other related costs.

Medical Payments coverage is designed to provide immediate assistance and help prevent potential lawsuits or legal disputes over minor injuries that occur on the insured property. By covering medical expenses upfront, it aims to promote a fast resolution and maintain good relations with visitors or guests who may have been injured while visiting your home. This can also avoid a larger claim helping to minimize negative impacts on your insurance score (more on this later!).

It’s important to note that Medical Payments coverage has certain limits and exclusions outlined in the policy. These limits vary depending on the specific insurance provider and policy terms chosen by the homeowner. While the coverage amounts tend to be significantly lower than other coverage parts under your homeowners insurance, nonetheless adding Medical Payments in your high value home insurance policy minimizes unexpected accidents or injuries occurring on your property that can be dealt with fairly and promptly without growing into a larger and regrettable dispute.

High Value Home Insurance

Coverage Enhancements in High Value Home Insurance?

High-value home insurance policies offer a fairly wide array of coverage options that go beyond the standard homeowners policy. These enhancements — some extras (i.e. endorsements added on) and others included (you get them without paying more!) — cater to high-net-worth households, providing higher coverage limits and additional protections for their valuable assets. Many of these are worth some careful consideration as they can provide much-needed relief for situations that arise frequently in the residential context. Here is an in-depth summary of a few key ones:

1.  Water and sewer backup coverage

We start with one of the most important coverages which protects from damage caused by water or sewage backing up into residences. In the event of a backup, this coverage typically provides reimbursement for expenses related to cleanup, repairs, and restoration. It may also cover costs associated with replacing damaged personal belongings and furniture. Water and sewer backups can occur due to reasons such as clogged pipes or malfunctioning sump pumps. In practice, this coverage often proves to be a very big relief for families. The resulting damage can be extensive and costly to repair without proper insurance coverage.

2. Ordinance and Law Coverage

This safeguard is another important aspect of high value home insurance. It protects homeowners against additional costs incurred due to changes in building codes or laws during the repair or rebuilding process after a covered loss. In the event of a claim, if there are new building codes or laws that require upgrades or modifications to be made to the property, Ordinance and Law Coverage can help cover these expenses. In many areas of the country, particularly those near the coastlines, codes are continuously changing.

Without this coverage, homeowners may have to pay out-of-pocket for these additional costs to comply. Also, high value homes often require specialized construction materials and techniques, which can make them even more susceptible to changes in building codes.  In some municipalities, older homes may not even meet current building requirements, which can result in additional expenses when it comes time to rebuild or repair.

This type of coverage typically includes three main components: demolition coverage, increased construction cost coverage, and loss of use coverage. Demolition coverage pays for the cost of tearing down any parts of the home that do not comply with current building codes. Increased construction cost coverage covers the additional expenses associated with bringing the home up to code during reconstruction or repairs. Loss of use coverage provides compensation for temporary living arrangements if the homeowner cannot occupy their residence during renovations. With this coverage in place, you don’t have to worry about each new proposed building ordinance or law change that is announced near you.

3. Cash-Out Option Instead Of Rebuilding

When it comes to high value home insurance, homeowners are often faced with the decision of whether to rebuild their damaged property or opt for a cash-out option. This choice can be particularly challenging as it involves significant financial implications and considerations. The cash-out option allows homeowners to receive a lump sum payment from their insurance company, for the full cost (less any applicable deductible, etc.), instead of rebuilding their home.

This alternative can be valuable for a few reasons. First, it provides immediate access to reimbursement funds that can be used however the homeowner sees fit — a fairly great amount of flexibility.  So, if they want to purchase a new property or simply have additional financial security, the choice belongs to them.  Second, opting for a cash-out avoids what can be a very lengthy and complex process of rebuilding a high-value home — for many, simply not a fun experience.  New ground-up construction projects often involve various challenges such as designing, permitting, finding reputable contractors, coordinating multiple parties involved in the project, and dealing with potential delays, cost overruns, or complications along the way (kind of supports the point about this not being enjoyable!).

On the flip side, even though this alternative may seem like an easy choice at a glance, some important factors need to be carefully considered before making a final decision on opting for a cash-out instead of rebuilding:

  • Adequate coverage: Ensure that your insurance policy offers sufficient coverage limits so you receive fair compensation through the cash-out option. In some instances, it may pay to rebuild.
  •  Replacement costs: Evaluate if purchasing another property, comparable in size and quality within your preferred location is feasible with the cash-out amount. Additionally, give thought to the available inventory for homes and land in your desired location.
  • Emotional attachment: Perhaps obvious but important to note: assess the sentimental value attached to your damaged property and consider if receiving a lump-sum payment would be able to compensate for the loss — your family’s home.

Before making any decisions regarding a cash-out option, homeowners should also carefully evaluate their specific policy terms and consult with professionals such as insurance agents and contractors who can provide expert advice tailored to their situation.  Take the needed time to dig into the details.

4. Service Line Coverage

This coverage is often overlooked completely! It protects homeowners from costly repairs to underground service lines that help provide utilities such as water, sewer, and electrical services. High value homes often have extensive and complex underground service lines throughout the property that can be susceptible to damage due to various factors like tree roots, natural disasters, or even human error during construction projects. Repairing these buried service lines can be extremely expensive and time-consuming.

This coverage typically includes repairing or replacing damaged pipes, wiring, or other components necessary for the functioning of utility services. In addition to covering these costs, some policies may also provide additional benefits such as replacing disturbed landscaping and reimbursement for temporary living expenses if homeowners need to relocate while repairs are being completed. Keep in mind, the public utility company will often need to make the repairs, and the timeline to complete can be unpredictable. It’s important for high value homeowners to carefully review their insurance policies and understand the specific terms and conditions of their Service Line Coverage. They should ensure that it adequately covers all potential risks (like loss of use due to displacement from your home!) associated with their underground service lines.

5.  Landscape Coverage

Landscaping coverage ensures that any damage or loss to the outdoor areas like gardens, lawns, trees, and other features, are protected. High value homes often have extensive and well-maintained landscapes that can be quite costly to repair or replace in case of unforeseen events like storms, fires, vandalism, or theft. Many families are surprised to learn that their Dwelling Coverage is often inadequate. Therefore, including this coverage in a comprehensive insurance policy is crucial for homeowners who want to carefully protect their outdoor investments. This coverage may also extend to hardscape elements like patios and retaining walls which can be more costly to replace than the greenery. With landscape coverage included in their high value home insurance policy, homeowners can receive financial assistance to restore damaged gardens or replace stolen plants.

6. Green Rebuilding Coverage  

On the topic of this same color, Green Rebuilding Coverage is yet another unknown protection to consider as part of your high-value home insurance policy. It provides coverage for the costs associated with rebuilding or repairing your home using environmentally friendly and sustainable materials and practices.  With this enhancement, homeowners can prioritize renewable resources, energy-efficient systems, and low-impact construction techniques.  Additionally, Green Rebuilding Coverage may include reimbursement for upgrades required by local building codes or ordinances related to environmental standards. This ensures that your newly rebuilt or repaired home meets all requirements for sustainability and efficiency.

7. Identity Fraud Protection  

This additional coverage may be included or endorsed as part of the luxury home insurance package. So, in addition to protecting your valuable property, the insurance policy also helps add measures around your personal information. Identity fraud protection typically offers a range of services to help prevent, detect, and resolve instances of identity theft. Some examples of what’s typically included are:

  • Credit monitoring, so that you get alerts of any suspicious activity on your credit report;
  • Identity restoration assistance, which helps you through the process of recovering from an identity theft incident and
  • Reimbursement for expenses directly incurred as a result of having to resolve the identified issue.

Exposures in this area are growing rapidly and this of course includes targets on affluent individuals. It is crucial to carefully examine the terms and conditions of each of these potential enhanced coverage options above to fully understand what is covered, or excluded, for each one. Of course, every situation is unique, so it’s very important to get advice from a licensed insurance professional as well as other experts before making any decisions about coverage.

What’s Missing in High-Value Insurance Policies for Your Home?

High-value home insurance policies provide extensive coverage, but it’s essential to understand that certain exclusions apply.  These are specific situations or items not covered by the policy.  To accommodate the high values and the locations of numerous distinct properties, certain exclusions may need to be carefully reviewed and attacked to close gaps. This can be achieved by obtaining endorsements or separate standalone policies.

Common High Value Home Insurance Exclusions

Below is a list of twelve typical exclusions found in high-value home insurance policies to carefully weigh:

1. Earthquake and flood damage: Most standard high value home insurance policies do not cover damages caused by earthquakes or floods. Separate standalone policies for earthquake and flood insurance, which are available from specialist companies, may need to be purchased for these specific risks.

2. Wear and tear: Insurance generally does not provide coverage for damages that result from the natural wear and tear of a property over time, such as foundations deteriorating or plumbing systems aging.

3. Maintenance-related issues: Any damages resulting from poor maintenance or neglect are usually excluded from coverage. This includes problems like mold growth due to lack of proper ventilation or failure to fix leaking pipes promptly.

4. Acts of war and terrorism: Damages caused by acts of war, terrorism, civil unrest, or military actions are generally not covered under high value home insurance policies.

5. Intentional damage: If the homeowner intentionally causes damage to their property, it will likely be excluded from coverage.

6. Nuclear accidents: High value home insurance typically excludes any damages resulting from nuclear accidents or radiation exposure.

7. Power failures and power surges: Damage caused by power failures or electrical surges is often excluded unless additional coverage specifically addressing this risk is obtained.

8. Business-related losses: Home-based business activities and related losses are frequently excluded from high value home insurance policies unless separate commercial insurance is purchased.

9. Vacant property conditions: Some insurers exclude coverage for vacant homes that have been unoccupied for a certain period (typically 30-60 days). It’s important to check if this exclusion applies to your policy if you plan on leaving your residence vacant for an extended period.

10. Losses due to pets, wild animals, pests, or insects: Any damage that is caused by furry household pets (think chewing on furniture), wild outdoor animals (think raccoons damaging roof shingles), difficult pests (think termites causing structural damage), pesky insects (think ants infesting the house) is typically restricted unless you obtain additional endorsements to provide coverage for causes of loss due to these multi-legged creatures.

11.  Certain types of personal property: High-value items such as jewelry, fine art collections, antiques, and expensive electronics may have limited coverage scopes and amounts under a standard policy and, to some extent, even under high value home insurance policies. Additional endorsements or separate policies (i.e. a personal articles floater in insurance jargon!) may be necessary to adequately insure these items against loss or theft.

12. Personal liability claims related to certain events: Liability claims arising from incidents like dog bites, swimming pool accidents, and trampoline injuries might be excluded depending on the specific terms of the policy.

13. Bonus Note — Umbrella insurance: Although it may not fall under the category of exclusions mentioned earlier, personal liability insurance is still worth mentioning due to its significance in safeguarding your assets. Personal umbrella insurance offers an extra level of liability coverage that goes beyond the maximum limits set by your current homeowners insurance policy. In certain situations, it can even expand the underlying coverage provided.

It’s essential when purchasing high value home insurance that you carefully review the policy documents and consult with a licensed agent who can analyze these limitations above to help identify any additional exclusions specific to your policy or situation.

Contrasting High-Value Home Insurance Companies with Standard Homeowners Insurance

At this point, you have gained a greater understanding of how luxury home insurance works — what’s in, what’s not, etc. We also noted that there are some similarities with typical homeowners insurance — for example, the Coverage A – F structure. But, there are divergences among the products available.

A Summary of the Major Differences

Here are some key distinctions between high value home insurance and standard homeowners insurance:

1. Coverage Limits:  A primary difference between these two types of policies lies in their respective coverage limits. While traditional homeowners insurance typically caps dwelling coverage and personal property at certain levels, high-value home insurance offers higher coverage limits to fully accommodate the rebuild costs associated with luxury properties.  This comprehensive coverage extends beyond just your residence; it also provides higher sub-limits for valuable items such as artwork or jewelry which are often found within high-net-worth households.

2. Valuation Method: High value home insurance usually employs an agreed-upon valuation method for determining the insured property’s worth. This means that in case of a covered peril (i.e. loss), you will receive a pre-determined cash settlement amount based on your initial insuring agreement with the insurer. In contrast, standard homeowners insurance typically uses actual cash value (which factors in depreciation) or replacement cost coverage (which won’t guarantee any specific amount) methods to determine reimbursement amounts.

3. Additional Coverage Options: High value home insurance policies often include additional coverage options tailored specifically for luxury properties. These may include coverage for valuable artwork, jewelry, collectibles, or other high-end possessions that may exceed the limits provided by standard policies.

4. Greater Loss of Use: Both policy types offer protection for additional living expenses incurred if you’re displaced from your house due to a covered loss. However, this aspect further illustrates the difference between them – insurers dealing with luxurious residences generally provide more generous allowances than those covering average-priced homes because they understand their clients’ lifestyle requirements during reconstruction periods following major damage incidents like fires or storms.

5. Enhanced Loss Settlements: In high value home insurance, there might be enhanced loss settlement provisions available that provide greater flexibility in settling claims after a covered loss occurs. This can help ensure that repairs or replacements are made using materials and craftsmanship comparable to those originally used in constructing the property.

6. Personalized Service: Given the unique nature of high-value homes and their owners’ specific needs, insurers offering this type of coverage often provide personalized service and dedicated account managers who specialize in handling these types of policies. They may also offer services like risk assessment consultations, disaster preparedness support, or access to preferred contractors experienced in handling upscale repairs or renovations.

7. Higher Premiums: Due to increased coverage limits and specialized features offered by high value home insurance policies, premiums tend to be higher compared to standard homeowners’ plans.  Deductibles under standard homeowners insurance usually range from $500-$5,000 while those applicable towards luxury dwellings might go up to $100,000 (or even more).

High Value Home Insurance

What Factors Affect High Value Home Insurance Rates?

The cost of high-value home insurance is influenced by several components. Here are ten key factors to consider:

1. Location: The location of your home plays a significant role in determining insurance rates. Homes located in areas prone to natural disasters, such as hurricanes. earthquakes or wildfires may have higher premiums due to the increased risk.

2. Replacement cost: The replacement cost of your high value home is another important factor. Insurance companies consider the materials used, construction quality, and unique features when determining how much it would cost to rebuild your home if it were destroyed. Ultimately, this will correlate with the coverage amount required for the dwelling limit — a major factor in determining premiums.

3. Home security: The level of security measures you have implemented can also affect insurance rates for high value homes. Installing advanced security systems, surveillance cameras, motion detectors, and reinforced doors and windows as well as 24-7 remote-monitored alarm systems can help reduce the risk of theft or damage and potentially lower your premiums.

4. Claims history: Your claims history with previous insurers can impact future insurance rates. If you have filed multiple claims or had a significant loss in the past, insurers may view you as a higher-risk policyholder and charge higher premiums accordingly.

5. Personal liability coverage: High value homes often come with higher liability risks due to their size and amenities (such as swimming pools). Insurers take these risks into account when calculating premiums for personal liability coverage. Also, if you opt for higher personal liability coverage limits on your policy, it can lead to increased premiums.

6. Deductible amount: The deductible is the amount you must pay out-of-pocket before your insurance coverage kicks in after a claim is made. Opting for a higher deductible can lower your premium but will require you to pay more upfront if an incident occurs.

7. Credit score: In some states where permitted by law, insurers may consider credit scores when calculating premiums for high value homeowners’ policies because studies show a correlation between creditworthiness and claim frequency.

8. Coverage options: Additional coverages like scheduled jewelry or art collections will increase policy costs since they require additional endorsements or separate policies tailored specifically to these valuable items.

9. Risk elements associated with the property:  Houses deemed risky due to certain characteristics face elevated rates. For example, properties without burglar alarms are attractive targets for theft, outdated electrical wiring systems pose fire hazards, unrenovated plumbing systems may result in higher risks of water damage and older roofs are susceptible to leaks.

10. Occupancy type: Whether a homeowner occupies their residence full-time or uses it as a vacation/secondary home can affect insurance costs. Unoccupied homes are generally considered riskier and may result in higher premiums.

It’s important to note that each insurer has its own underwriting guidelines and may weigh these factors differently, and consider others when setting premium prices for high value homeowners policies.

Average Premium Amounts for Luxury Home Policies

Here are some examples (for illustration purposes only!) of the potential average estimated premium amounts for a homeowners insurance policy through high-value carriers:

  • $1 million replacement value: $2,500 to $5,000
  • $3 million replacement value: $8,000 and $16,000
  • $5 million replacement value: $15,000 to $25,000
  • $10 million replacement value: $50,000 or more

Importantly, these estimated figures for homeowners insurance policies are just averages and actual premiums can vary greatly. These amounts are for illustration purposes only and should not be relied upon for any purpose. 

Reduce Your Costs through Bundling and Higher Deductibles

When it comes to expensive insurance costs, there are two important strategies to consider: bundling and higher deductibles. Bundling involves combining two (or more) coverages like your luxury homeowners, auto, and personal umbrella insurance policies with one carrier. This not only makes managing your policies easier and eliminating gaps simpler but can also lead to significant savings on premiums. On the other hand, opting for higher deductibles can make you appear less risky to high-value insurance companies and may result in more favorable insurance applications.

Premium Savings and Gap Reductions through Policy Bundles

The most tangible benefit is cost reduction. While not always the case, many home insurance companies offer discounts when you bundle more than one type of coverage with them. The discount usually increases for each additional line added, potentially resulting in considerable overall premium reductions.

Bundling also minimizes risk by preventing gaps between different types of coverage that could leave you financially vulnerable following a covered loss or claim against your personal property. With all policies managed by one provider, there’s less chance of failed overlaps or holes within your comprehensive coverage plan.

Ease Of Management Through Consolidation

Apart from financial advantages and closing potential gaps, consolidating various insurances offers convenience through streamlined policy administration tasks like renewals and claims processing. Having all coverages consolidated into a single provider allows easier access to information about each policy type, making communication simpler during claim situations or inquiries regarding changes on any given policy.

Having fewer bills to manage and fewer renewal dates can greatly simplify life, which is particularly beneficial for affluent households with high-net-worth homes that require complex protection.

Gaining Competitive Advantages with Higher Deductible Options

Selecting a high-deductible option does more than just reduce premiums. It also boosts competitiveness when applying for coverage from leading companies with strong financial strength that specialize in insuring valuable properties. These well-regarded companies value clients who demonstrate financial responsibility through larger upfront payments during losses instead of leaning heavily upon the insurer’s payout each time there’s an incident.

The List of Self-Retention Benefits

Here are five key advantages of high deductibles for high-value home insurance:

1. Lower premiums: By choosing a higher deductible, you can enjoy significantly lower premium rates on your insurance policy. This is because the higher deductible means that the insurer will have less financial risk in case of a claim, resulting in reduced monthly or annual payments.

2. Customizable coverage: High-value homes often come with unique features and expensive belongings that require specialized coverage. With a higher deductible, you can tailor your insurance policy to meet your specific needs and ensure comprehensive protection for valuable assets such as art collections, jewelry, or luxury furniture.

3. Financial stability: Homeowners with substantial savings or emergency funds may find it advantageous to opt for a higher deductible. In the event of minor damages or losses that fall below the deductible amount, they can comfortably cover these expenses out-of-pocket without filing an insurance claim which helps maintain an attractive insurance-based score (which measures whether you file large and frequent claims among other things). This helps maintain their claims history and prevents potential premium increases.

4. Reduced frequency of claims: A higher deductible encourages homeowners to be more cautious and selective about filing claims only for significant losses or damages exceeding the set threshold. This leads to fewer frequent small claims which could potentially impact future insurability and result in increased premiums.

5. Long-term cost savings: While initially paying a larger sum out-of-pocket after an incident might seem daunting, over time, selecting a higher deductible can lead to significant long-term cost savings on insurance premiums if no major incidents occur.

Homeowners who maintain their properties well and avoid making frequent small claims may benefit from lower overall insurance costs in the future — i.e. through higher deductibles. It’s important to carefully consider your circumstances before deciding on an appropriate amount.  Ultimately, high-net-worth households showing a willingness towards risk-sharing via increased deductibles can find themselves receiving favorable terms during negotiations with these specialized home insurance companies as a sign of stable, safe, and effective home-management practices.

High Value Home Insurance

Where to Find Insurance for a Luxury Residence

Now that you have a good grasp of this unique and comprehensive coverage, here is a list of 12 recognized high-value home insurance providers to learn more about their potential programs:

1. Chubb: Chubb is renowned for its extensive coverage and top-notch customer service, providing tailored insurance policies for upscale residences and valuable possessions.

2. AIG Private Client Group:  AIG specializes in providing customized insurance options and personalized risk management services to meet the unique needs of affluent homeowners. With a focus on high-value solutions, AIG offers tailored coverage and comprehensive support for individuals with specific requirements.

3. PURE Insurance: PURE specializes in providing insurance coverage, catering to affluent individuals, for valuable assets, and offers tailored policies that safeguard against a range of risks associated with luxury properties.

4. Nationwide Private Client: Nationwide is a leading provider of insurance coverage tailored to the needs of affluent homeowners. With their exclusive options and personalized service from dedicated personal risk advisors, they ensure that your valuable assets are protected.

5. Cincinnati Insurance Company: Cincinnati Insurance is renowned for its exceptional claims service and comprehensive coverage choices, offering customized solutions specifically designed for high-value residences.

6. Openly Insurance: Openly Insurance is a trustworthy option for insuring your valuable assets, like luxury homes or high-end properties. Their user-friendly online platform makes it simple for customers to manage their policies, file claims, and seek assistance from their knowledgeable team.

7. Travelers High-Value Homeowners Insurance: Travelers offers specialized insurance coverage for high-end properties, ensuring that valuable assets are fully protected from potential risks. Their policies are tailored to meet the unique needs of upscale homeowners and provide comprehensive security for their valuable possessions.

8. Hiscox USA: Hiscox specializes in providing insurance coverage for luxurious homes that have unique features or historical importance. They offer flexible policies tailored to the needs of high-value properties, ensuring comprehensive protection.

9. Safeco Premier Home & Auto Coverage (Liberty Mutual): Safeco Premier offers a comprehensive insurance package that combines coverage for both your home and car. This specially tailored plan is designed to provide enhanced protection for higher-end homes and vehicles.

10. Vault Insurance: Vault’s policies provide comprehensive coverage for your home and its contents, going beyond just the physical structure. This includes safeguarding valuable artwork, jewelry collections, fine wine collections, antiques, and other cherished possessions. Along with standard protection against fire damage or theft, Vault also offers specialized coverage for natural disasters like earthquakes or hurricanes.

11. Berkley One: Berkley One combines traditional insurance expertise with modern technology to offer customizable policies covering not only the physical structure but also lifestyle-related elements such as domestic staff liability or home office equipment.

12. Beazley Insurance: Beazley’s insurance policies are specifically crafted to safeguard valuable assets and offer clients a sense of security. They have an in-depth understanding of the distinct requirements of affluent individuals and customize their coverage solutions accordingly.

Important: Please note that the above list is not exhaustive and it is neither deemed to be an authority nor an official review of any of the above insurance companies. The content is for illustration purposes only and shall not be relied upon for any purpose. Also, there may be other high-value home insurance companies available and you should consult a licensed insurance agent to review options specific to your individual needs.


High value home insurance is a top priority investment for homeowners with properties of significant worth (i.e. high replacement value amounts!). This specialized coverage provides comprehensive protection against potential risks such as natural disasters, theft, and liability claims.  Additionally, the personalized nature of this type of insurance allows for individualized policies to suit each client’s needs and preferences. With its extensive coverage options and exceptional customer service, high value home insurance companies offer unparalleled benefits (and some great policy perks!). Therefore, it is highly recommended for those who own homes with substantial value to take a close look at the advantages offered by high value home insurance to ensure that their most important possessions are fully protected.


DISCLAIMER: The information provided in this blog is intended for general educational purposes only and should not be relied upon for any specific purpose. Additionally, the information contained herein is not regularly updated. Neither this blog nor any of its content (express or implied) should be considered as legal, financial, health, or other professional advice. It is essential to consult with your own advisors regarding any matters discussed in this blog or elsewhere. Notable Risk LLC and its owners, members, managers, directors, officers, partners, consultants and similar entities do not make any representation or warranty regarding the accuracy or completeness of the information presented in this blog or elsewhere.

Updated: September 22, 2023