A lot goes into purchasing a home. It’s not just time and money. There are emotions and expectations involved. For some, buying their first home means fulfilling a dream. For others, it comes with the anticipation of wonderful memories ahead. And for others who are into real property investing, it is a means to build wealth. Purchasing a home is a statement about one’s achievements. And, at the same time, a reflection of one’s personality and lifestyle. And when you know your home’s value is higher than average, you wouldn’t want to go with an ‘average’ homeowners insurance. You’d want the best there is. You’d also want to ensure you don’t only get the protection and peace of mind every homeowner deserves. But also the excellent service that goes with choosing to have a high-value home insurance company take care of your needs.
After all, you deserve nothing less. So, let’s talk about what high-value home insurance is about, who it is for, and who insures high-value homes.
What is High-Value Home Insurance?
High-value home insurance provides more comprehensive coverage for homes that have higher-than-average values. And this includes houses, high-value condos, and rental homes. High-value home coverage also means more extensive coverage for personal property and additional structure. These companies that offer this type of insurance understand the specialized needs of their clients. You can expect that before, and after-sales service would be more personalized and of higher standards.
Who Needs High-value Home Insurance–when Should You Consider Getting One?
- When you have a home that is a heritage. Or one with features no longer standard in modern-day construction. Or, architecture, your home will most likely have increased value.
- When your home has expensive landscaping, additional structures, or attractive nuisances, attractive nuisances are the features that present a higher risk for claims.
Examples are having swimming pools or basketball courts on your property.
Although these amenities provide fun and leisure to your family and friends, remember that the homeowner is liable for any injury on the property.
- When you have expensive or priceless items in your home, such as antiques, expensive furniture, fixtures, and the like, not to mention costly paintings, priceless jewelry, and wine collections.
- When your lifestyle demands a more personalized service from your insurance provider.
Although similar in many ways to the standard homeowners’ insurance as we know it, high-value home insurance provides something more to its policyholders in terms of some unique privileges and benefits.
What Are The Benefits Of Having High-value Home Insurance?
Personalized claims service
Any event that warrants a claim could mean trauma for you and your family. At the very least, making a claim can be time-consuming and inconvenient. Having high-value home insurance removes the burden of worrying about your claim. You can expect rapid responses and extended services. For example, getting help finding the “right” temporary home during repairs.
More extensive coverage for expensive personal property
When you have jewelry, fine art, wine collections, and other special items in your possession that are priceless, you would need coverage with higher-than-usual limits. If you’ve shopped for any insurance before, you’ll know that one drawback of lower policy prices is the limited coverage. Limited coverage means limited protection. If you have a collection of paintings worth at least $300,000, getting a policy with limits that aren’t even remotely close to this amount won’t make much sense.
Combined single limits
Typically, insurance policies would have subsections for coverage. Coverage for personal property will have its own limit, and coverage for loss of use will have a separate limit. Imagine having a limit for repairs set at $300,000 and a limit for personal property of $60,000. If your kitchen sustains substantial damage from fire and, repairs will cost $350,000, having split limits will mean that you would have to shoulder the extra $50,000 in repairs. Even if your personal property claim only amounts to $10,000. When you have a combined limit, you can use your coverage however you like.
Identity theft coverage
They say that the more money you have, the bigger or more complicated your problems get. And one of these would be identity theft, which could include fraudulent transactions involving your assets.
The option to get cash instead of having to build your home again when there is extensive damage
It is always good to know that if anything happens to your home. And, If you no longer feel safe living in the same area, you can request cash instead of having your home built again.
Unlimited loss of use coverage
When you want to make sure that in the event you need to make a claim and also won’t be able to use your home (i.e., it needs to be repaired or reconstructed), you would have access to unlimited loss of-use coverage–and the magic word there is “unlimited.”
More extensive coverage in terms of repair or property replacement
Whereas a standard homeowner’s insurance does not require the insurance company to replace parts in damaged areas of your home or an entire collection when only a part of it is missing, the same isn’t true for high-value home insurance. If a fire damages half of your kitchen, your coverage will include replacing the entire kitchen. A standard policy will leave you having to shoulder the reconstruction or renovation of the other half if you want everything in the kitchen to match perfectly (which you’d surely want).
These may include assistance preventing loss or damage from wildfires, 24/7 emergency services, assistance detecting moisture or fire hazards, and referrals to pre-qualified contractors/service providers.
Which Companies Provide High-value Home Insurance?
Not every insurance company offers high-value home insurance, and understandably so. High-value homes can cost millions. And, it’s not enough to have a cash flow that covers just one to two claims at a time. So, you can imagine how much funds should always be available because it is not just about settling the claim. But also about sending the client a check within 24 to 48 hours. So, here are the top 4 insurance companies for high-value, upscale residential homes. Let’s see what kind of protection and services each one can offer.
Nationwide Private Client
Nationwide has been providing its services since 1926 and has been given an A+ rating from A.M. Best, an A1 rating by Moody’s, and an A+ rating from S&P.
Here are a few things that Nationwide Private Client promises you:
- Customized products to suit your needs and your lifestyle.
- Efficient service that not only meets your needs but saves you time.
- Assigned claims professionals from the Private Client team will provide hands-on support throughout your entire claims process to ensure an exceptional experience.
- Access to a risk solutions team that provides proactive advice to prevent loss and minimize risks.
Taking up home insurance with Nationwide means you will have a comprehensive and customizable policy that offers unique coverages to protect you and your family, your home, and your lifestyle.
Below are some of the exceptional benefits you can expect from a Nationwide Private Client high-value home insurance:
- Temporary arrangements – relocating or finding a temporary place permanently will be necessary if you suffer a covered loss. At the same time, if you wait for your home to be returned to a habitable condition, you will be covered for the increased living expenses needed to maintain your household’s usual standard of living.
- Replacement cost – replacing your home “to its original specifications” will be part of the coverage, even if the cost might exceed the policy limit.
- Replacement cash-out option – you will be paid up to the limit of your home and personal property’s coverage in the event of a total loss.
- Accidental breakage – they offer special limits of $50,000 to cover damage or breakage of fragile items in your home, such as sculptures, figurines, statuary, mirrors, china, glassware, crystal, wine bottles, and other similar items.
- Identity theft assistance – your coverage will include identity theft assistance benefits to assist you in properly protecting your identity and reputation.
- Equipment breakdown – depending on the terms of your policy, the cost to replace or repair damaged household systems or appliances may be covered.
- Claims promise – Nationwide Private Client promises to quickly assign a “highly skilled, caring, and responsive professional” in the event of a loss so that you have the proper assistance throughout the process.
You can find an agent through their website, pay your bill, and even start a claim. The website also gives you access to many resources regarding loss prevention tips. In addition to homeowners insurance, Nationwide Private Client offers automobile, personal collections, and excess liability insurance.
PURE — Privilege Underwriters Reciprocal Exchange
PURE has been in business since 2006, with its President and CEO previously affiliated with The Chubb Group and AIG Private Client Group. The company takes pride in its “member-owned model,” where there is an “alignment of interests” among its stakeholders. And as part of its “commitment to transparency,” it’ll issue an annual report to its membership each year, where they share its “Pricing Principles” to show its set rates.
Pure has continued to innovate to present solutions to its high-net-worth members, finding ways to reduce their risk of claims. Indeed, prevention is better than cure. It was also rated A by A.M. Best and was named “Best High Net Worth Insurance Company” at the 2019 Private Asset Management.
Some of the features of their homeowners’ insurance are as follows:
- Rebuild, replace, or choose cash settlement – in the event of a total loss, you can rebuild your home or receive a cash settlement.
- Guaranteed replacement cost – should you choose to have your home rebuilt, you are guaranteed that this will be done in likeness to your home’s design and quality before it was destroyed, and this will be done regardless of whether the actual cost to do so exceeds your coverage limits. This feature, however, may not be available in all states.
- Jewelry protection – your homeowners’ insurance will include coverage of up to $50,000 for stolen or lost jewelry, with a limit of $25,000 for any single item.
- Sewer and drain backup coverage – when sewers back up, it can cause toilets or drains to overflow. The coverage includes payment for services to clean up the damage and rebuild or replace damaged property.
- Comprehensive risk prevention – PURE believes in the importance of risk prevention as this helps its members avoid the inconvenience of going through a claim. More importantly, minimizing risks means preventing losses and adding protection for your family’s and your belongings’ safety. The lower the risks, the more protection you and your family will have, and the more peace of mind there is for everyone. To do this, PURE has risk managers who advise how to make your home safer for you, your family, and your friends. PURE also has services available to help you implement those recommendations.
AIG Private Client Group
Established in 1999, AIG Private Client Group focuses on providing solutions to high-net-worth individuals’ and families’ property and casualty insurance needs. AIG Private Client Group falls under the century-old umbrella of American International Group, Inc., a global organization providing insurance solutions and financial services in more than 80 countries. AIG has financial strength ratings of A from A.M Best and A+ from S&P as of 2019.
So, what does AIG Private Client Group have to offer in terms of high-value home insurance? Here are some of the features of a policy for high-value homes:
- Coverage to include homes outside of the United States.
- Coverage for items damaged by pets, breakage of fragile items such as china and crystal, and landscaping.
- Coverage is to address your needs regardless of where your home is.
- Customized policy limits that address your needs according to your lifestyle.
- Repair or replace (with new items) covered personal property without depreciation deduction.
- Availability of funds for additional living expenses if you cannot inhabit your home due to loss or damage.
- Rebuilding your home, whenever possible, to match its design and quality before the damage or loss–regardless of policy limits.
- The option to have your claims settled in cash without the obligation to repair/rebuild the property or replace lost items.
AIG Private Client Group also promises its clients that a claims specialist will be available 24 hours a day, 7 days a week. And they will contact y within an hour in case of an immediate crisis. And because they understand that some of your personal property has sentimental value, if an item is stolen or lost, attempts to recover it will continue even after receiving a settlement.
CHUBB is a global company with a history that dates back to 1792. Since then, the company has continually grown and has a presence in more than 50 countries, providing commercial and personal property and casualty insurance, among others. Backed by assets worth more than $174 billion, it has financial strength ratings of A++ from A.M. Best and AA from S&P.
The following are some of the features of high-value home insurance from CHUBB:
- Extended replacement cost feature where coverage will be extended beyond policy limits should you need to rebuild your home after a loss.
- The option to get cash up to the policy limit in case you would not wish to rebuild your home after a loss.
- Assistance in finding a temporary place to stay while your home is being rebuilt or restored, with coverage for additional living expenses.
- Personal property can be insured for the amount it costs to replace them without considering depreciation and up to your policy limit.
- Damage due to water backup from the interior sewer and drainage is covered up to your policy limit. Dependable claims service where you can expect to be contacted within 24 hours of loss or damage report–with payments issued within 48 hours of settlement.
- Emergency services are available 24 hours a day, 7 days a week.
- Complimentary services that include referrals to pre-qualified service providers, wildfire defense and hurricane damage assessment, and detection of moisture and fire hazards.
Tips On Choosing The Right Company And Policy:
- Ask questions and never assume – When buying insurance, there is no such thing as having “too many questions”; it is your right to ask and know the nitty-gritty details about your home insurance.
- Compare policies – A wise buyer will always check options before purchasing. Ensure you know your coverage, policy limits and deductibles, and any complimentary service they provide.
- Make sure you understand the claims process right from the start – Be clear about what you need to do and what information you would need to provide should you ever have to make a claim.
- Check for discounts on bundles – Ask your agent about their other products and see if combining your homeowner’s insurance with another product you might need will mean savings and be more convenient. But, never assume that having the lowest rate for home insurance will mean that the same company will automatically have the lowest rate of all the other products (i.e., auto insurance).
- Don’t just rely on what a friend or colleague tells you about features and benefits – Coverage and services may differ depending on where your property is located.
Undoubtedly, each of the abovementioned insurance companies delivers their promises. And indeed, with financial strength ratings the equivalent of “excellent,” you can know that these companies are financially stable and can payout claims. What’s important is that you practice due diligence in your research regarding pricing and coverage, and you go with the company you feel best understands your needs.
Got any questions lingering in your mind regarding your current policy? Does it cover everything? Call us today here at Team AIS in Denver, CO, and we’ll gladly provide a free policy review.