What Is Considered High-Value Home Insurance?
If you’ve ever heard the term high-value home insurance then you have probably wondered what it is and if you need it. You’ve come to the right place for your answers. Client home insurance is for those of you that have a high net worth. If you are considered a high-net-worth individual then you probably need high-value home insurance that protects your assets. Knowing that information, private client home insurance is going to be the best option for you individuals that want to protect just about everything.
Your home is extraordinary, it probably has custom features that are unique to just your home. This means you need a homeowner’s insurance policy that is just as extraordinary or specialized as your home. Insurance Advisors of St. Louis offers high-value home insurance policies that give you the flexibility to tailor your coverage to meet your specific needs. If your home is valued at $1 million or more then IASTL’s high-value home insurance might be right for you.
- Architecturally Significant Homes.
- Historic Property.
- Luxury Apartments.
- Luxury Condominiums.
- Homes Made For Special Features.
- Homes Constructed With Rare Or Expensive Materials.
When owning a home with such a high value, you know that it comes with a unique set of challenges. These problems don’t just come from your property having a high price tag. A lot of the problems that you see come from having to pay higher personal property taxes and liability limits that wealthy customers face. With that said private client homeowners insurance comes with some unique perks as well.
Who Can Benefit From High-Value Homeowners Insurance
If you are ready to stop asking questions about high-value home insurance, we are here for you.
Have you heard of the term attractive nuisances? Those consist of things such as swimming pools or play equipment. You as the owner will be on the hook for any harm to those items. With that said, it’s better to be safe than sorry and get the appropriate policy for your home.
If you have teenagers and their friends who think it will be a good idea to sneak onto your property while you are away and they get hurt, you can and most likely will be held responsible. Examples like this are the exact reason that higher liability limits are probably what you need to protect your assets.
High-Value Home Insurance Covers:
- Additional Living Expenses.
- Cost-Free Home Inspections.
- Employment Practice Liability.
- Identity Theft Coverage.
- Partial Loss To Your Home.
- Pipe And Sewer Backup Coverage.
- Set Or Pair Conditions.
If I’m Getting High Net Worth Home Insurance – How Much Do I Need
When thinking about how much insurance you need, you need to think about how much money it’s going to cost you to replace your property or your home, or both. There are many options for high-value home insurance that you can choose from.
Here are a few common policy options:
- Replacement Cost Coverage.
- Actual Home And Property Value.
If you are a person with a high net worth home, thinking about the cost of replacement coverage for your home is a good idea. The reason you might want to think about this is that it becomes extremely expensive to replace everything in your home at the correct value. This also includes depreciation. To avoid issues it’s our recommendation that you go with our high net worth homeowners insurance policy.
Another form of insurance coverage is extended replacement cost coverage. You will have to pay an additional cost, but this coverage is best for replacing everything that you own and for more than you originally paid. All of your fees will be covered from labor to material costs.
In a lot of cases, most high-net-worth individuals will already have a home that comes with extended replacement cost coverage.
What Is Covered By High Net Worth Homeowners Insurance Policies
If you have a high-value home then you have a high-value property and the items that come along with that. Antiques, fine art, and things like jewelry are items that are covered by standard insurance. That type of insurance usually only covers items that are valued up to $1,500. There is no way that is enough coverage for high-net-worth homes.
Valuables Covered With High Net Worth Homeowners Insurance
- Business Properties
High-Value Home Insurance FAQs
What Is The 80% Rule In Insurance?
The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
Is Homeowners Insurance Based On Appraised Value?
These appraisals are—generally—only conducted when a homeowner is selling or refinancing their home. While your home's purchase appraisal will affect your home insurance rates—since home insurance premiums are based on the value of your home—these appraisals are different from homeowners insurance appraisals.
What Causes Homeowners Insurance To Be High?
The most common reason is an increase in the cost to rebuild your home. Home reconstruction costs, including labor and materials, can go up due to changes in the market and the effects of inflation. Remodeling and improvements can also result in higher replacement cost.
How Much Home Insurance Do I Need?
Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.
What Is The Average Cost Of Homeowners Insurance In Missouri?
Missouri is one of the most expensive states for homeowners insurance. The average cost of homeowners insurance in Missouri is $2,251 a year, or $516 more than the national average of $1,735. But we saw annual rates as low as $1,214 per year, as costs vary between companies and areas.
If you still have questions about high-value home insurance, please contact our independent insurance agents today at IASTL, one of the best insurance companies for high-value homes. You can contact us at (314) 842-0960 or by using the contact form below.