Home Insurance for 1 Million Dollar House in 2023?

May 27, 2020 | Personal Insurance

At one point, you dream of owning a lovely house that costs 1 million dollars (or maybe more). If that happens, you will do everything to protect that house and your valuables inside it. Home Insurance for a 1-million-dollar house is one of the most relevant decisions you have to take about protecting your home.

A standard home insurance policy may not suffice if you have a million-dollar house. Insurance companies cater to the needs of a much larger group of customers. Since many home insurers do not have features in their plans that include a million-dollar house, getting the right insurance can be challenging.

Home insurance for a 1 million dollar house 

Home insurance for a 1 million dollar house varies across the United States. In some states, the insurance rate can be $0.05 per $100 of insured value. It may equal that of a high-value condominium or a rental home in other states.

The kind of insurance policy you need does not just cover your house. Accordingly, it also touches on details that are integral parts of your property. A million-dollar house comes with a unique set of insurance premiums. Your insurers do not want you to be underinsured so that the insurance cost may be higher. These details are necessary for deciding whether the price of your insurance would go up or down, year built, credit score, deductible, personal items, and other valuables.

Looking for affordable, reliable Home insurance for a 1 million dollar house?

What Are Considered for Home Insurance for 1 Million- Dollar House

House structure

In case you have a roof to reduce greenhouse gas emissions, a ceiling that opens through remote control whenever you want to see the stars and the night sky, or a gate that is a motion-sensor or voice-activated door.


Your house is in a beach-front area. You live in an area prone to floods or other natural disasters. Crime statistics in your area are also considered for loss assessment.

Construction or Architecture 

Your house may have a swimming pool, an entertainment room, or an indoor spa. These contribute to the total assessment of your home’s premiums and coverage.

Safety features

Having safety features means your house is child-friendly in every aspect, or you have a state-of-the-art security system. The house is fire-resistant and uses unique construction materials that cannot be easily destroyed by natural calamities like hurricanes, floods, and earthquakes. You have an alarm system for breaking, protecting your home from burglary.

Year Built

Any brand new house tends to be more durable than a million-dollar house built ten years ago. Insurers do not automatically believe that the older the house, the better it stands the test of time. High-tech safety features in newly-built houses are a good basis to have home insurance for million dollar homes.

Credit score

Your high credit score may lead to lower insurance rates, and a low credit score may lead to higher insurance rates. Based on some insurance studies, credit scores and claims frequency have a symbiotic relationship. If insurers do not find your claim history anomalous or repeatedly done, you will get a higher insurance score.


Your deductible is the part of the claim that you pay. All home insurance policies have a deductible. Frequently, different types of deductibles are applied to different types of claims. If you choose a higher deductible, you take up a more considerable amount of risk, which generally corresponds to lower rates for your home insurance. Insurance companies will not cover claims if they are below the deductible amount.

Personal items

You have a lot of jewelry and cash inside your home. Collector’s items include art pieces, expensive appliances, gadgets, decors, and fixtures. Previously, the rates of insuring a costly house depend on which state it is located in. It could be higher or lower compared to other states. The rates for an upscale neighborhood in New York may not be the same rate as the neighborhood in Delaware.

Home insurance for million dollar homes can have other valuables included. Insurers determine a coverage amount for your million-dollar house-based software. They might consult building experts to determine a rough estimate for restoring your house to its original form in the event of a loss. A complimentary home inspection by an insurer also gives them enough time to help you document your home correctly. Your insurer will be able to confirm the value of your house and provide an approved replacement value.

Other Valuables

The insured value of your house may not match its market value. A million-dollar house uses a formulaic rate to estimate the cost of home insurance. This rough estimate is necessary to make your house good as new after any possible repair and restoration that you may need in the future. The cost of insuring a multi-million-dollar house is different from that of a place insured for a higher value. Assuming that coverage for home insurance for a 1 million dollar house uses a formulaic rate to estimate the cost of home insurance, say $0.18 per $100 of coverage, say the house itself is insured for $1 million, the other structures would have an insured value of $100,000. They would insure your personal property for up to 500,000.

Insurance that gives you the power of security. 

If you have a million dollar house, you should have a million dollar insurance. 

Captive vs. Independent: Which Insurance Agent To Talk To?

The best way to get the right insurance is to shop for a personalized quote. There are two types of insurance agents, a captive agent and an independent agent. An independent agent known as an insurance broker may have unlimited offers since he is not tied to one insurance company. A captive agent may not be able to fully handle the complexities that come with insuring a million-dollar house. Speaking to two different agents with separate roles could mean understanding how they differ.

Some insurers can only offer limited or inadequate coverage and may not have an available package for a house that costs one million or more. It is a must to learn specialty coverage to protect your million-dollar house from unfortunate circumstances. Unlike standard coverages, specialty coverages have adjustable policies that will give you options on how much coverage you prefer.

Specialty coverages will suit and be a perfect addition to each of your coverage, depending on your risk profile. That said, you become stress-free about not being covered.

What Your Specialty Insurance Agent May Want To Know:

Do I live in a high-risk area?

If you have high-value assets and don’t get flood coverage, you may face a bigger problem in the future. Insurance companies that deal with million-dollar homes include flood coverage as part of their package. If you are new to the neighborhood, finding trusted contractors will pose a big challenge.

Do I get the appropriate value for my house?

Your home’s insurance value should be accurate and updated. Guaranteed replacement cost coverage allows you to replace or rebuild your house, even if the damage is beyond your policy’s limits. You should know both market value and replacement cost since the coverage only applies to rebuilding your house at the same spot.

Am I provided a temporary shelter after losing my home?

The coverage for temporary housing, including any additional living expenses, is provided for by Loss of Use coverage. This coverage is relevant when your house is being repaired or rebuilt. Some carriers limit the time they can shoulder, while others insurance providers have unlimited coverage. If you rent out your property, the loss of use coverage helps cover the lost rent if your tenant has to move out because of the property loss.

How will my assets be protected from man-made disasters?

Having cybercrime and identity theft coverage helps you stop a security breach committed against yourself. Using your credit card to purchase something, clicking a link that arrives in your inbox, or an innocent post on social media can lead to cybercrime. If you have more valuable assets, you lose more than you gain.

What about my legal rights?

If you put much thought into the coverage for your liability insurance, better choose the one that can give you broader coverage. This liability coverage will be your immediate aid if any of your domestic help employees are injured on the job. In cases when your domestic employees file a lawsuit against you, your employment practices liability will pay for your legal fees.

What if I have a vacation house?

Many insurance providers have features in their policies that also provide coverage for vacation houses. If you combine this coverage into one approach, this will help you get your money’s worth, and at the same time, you get the full range you need. 

What happens if I get kidnapped?

Kidnap and Ransom Coverage Policies often cover funds given to kidnappers or any other expenditures incurred due to an abduction. These dangers are quite real and can strike any highly valuable individual or company.  Anyone can purchase the kidnap and ransom coverage, but since the cost of this policy can be unreasonably high, most customers who buy it are wealthy and VIPs.

Corporations and Non-Government Organizations can purchase kidnap and ransom coverage to protect their employees and volunteers from the effects of kidnapping and ransom demands. If you travel to countries in which the U.S. has an active travel ban, such as Syria or Iran, your coverage will be considered null and void.

Get Home Insurance for a 1 Million Dollar House!

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