High-value homes are generally those over $750,000 in value or $1 million in value, though this can vary per insurer. Qualifications for high value homes can vary depending on your insurer, however. If you are not sure where your home falls when it comes to value, have your home evaluated and speak with an insurance agent. Coverage limits are different for regular homes vs. high value homes since high value homes stand to lose more financially after an accident.
What Does High Value Home Insurance Cover?
High value home insurance covers a lot of the same coverage as a normal home insurance policy except with higher limits. This includes:
Dwelling coverage provides compensation for damages to the physical home and its attached structures caused by fire, wind, hail, lightning, smoke, theft, vandalism and more. If the roof is damaged due to hail or a storm, for example, dwelling insurance should help cover repairs.
Since the cost of repairs and replacements for the dwelling is higher on high value homes, high value home insurance offers larger limits for damages.
Personal Belongings Coverage
Personal belongings cover repairs and replacement costs for your personal items such as clothes, furniture, decorations and more. This covers damages caused by fire, lightning, smoke, theft, vandalism, etc.
Many basic home insurance policies have limitations on coverage for more expensive items such as jewelry, furs and art. With a high value home insurance policy, you may receive around $25,000 in coverage for antiques and fine art and $10,000 per jewelry item.
Liability insurance under home insurance covers bodily injury and property damage someone else may suffer on your home’s property. If someone falls and breaks their ankle in your home, for example, liability insurance can help with the victim’s medical bills and protect the homeowner in case of a lawsuit.
High value home insurance covers higher limits of general liability, as many high value homes have areas of risk such as trampolines, pools and hot tubs that could lead to severe injury.
You can also purchase additional insurance through umbrella liability, which fills in gaps left by your other liability insurance coverages.
Additional Living Expenses
Additional living expense (ALE) coverage provides compensation for living expenses if the original home is rendered uninhabitable by a disaster, including food and boarding costs.
Make sure to speak with an insurance agent about whether or not your home is covered by high value home insurance.