Obtaining the right insurance coverage for a high-value home is like a two-sided coin. On one side is an individual with an attention to detail that has proved a cut above. The evidence of that personal attribute, coupled with hard work, is visible even to an outsider: your house(s), your car(s), your jewelry, your art; and so on.
Unfortunately, insurance coverage that doesn’t match that level of commitment to success is all too often on the reverse side of that coin. This disparity has led to much heartache among high-net-worth individuals, who—either out of a lack of knowledge or appropriate concern, or grandfathered-in insurance relationships that began as far back as college days—have failed to protect their most valuable assets from ill-fitting levels of coverage.
It’s an easily avoidable situation with the right insurance broker on your side—someone with a matched attention to detail and the resources to fully insure your assets.
For owners of luxury homes who have a high net worth, standard homeowners insurance is likely not sufficient. High-value home insurance is designed specifically for these property owners, offering better dwelling insurance (including extended replacement cost coverage); better contents coverage (insuring all risks, not just the standard 16 named perils); and more generous liability coverage (including legal defense costs beyond the liability limit and more).
Some specific advantages of a high-value home policy over a standard policy include:
- Cash settlement options on a total loss
- Waiver of AOP deductible for losses over 50K – excluding named storm/hurricane and earthquake
- No limit on law and ordinance coverage
- No limit for debris and demolition coverage
- Assignment of carrier adjuster the same day of the loss vs. contact from the reporting center
- Scheduled property coverage (jewelry, fine arts, wine, silverware, musical instruments, etc.) available w/o appraisals unless valued over $50K
- Unlimited water backup vs. $5,000 max limit for water backup damage
- Scheduled property insured at agreed value vs. settlement options through vendor/merchant for the lowest replacement cost.
If your home is valued at $1 million or more, it requires additional coverage that mass-market coverage simply can’t provide. High-value home insurance expands to ensure every unique detail of your home and your life within it is protected: no worries, no guesswork.
So, as you consider purchasing your dream home or second home, ask yourself this important question: Is the level of attention that realized your purchase worth extending into the policies that guarantee its security?
Robert Kerdasha earned the designation of Certified Advisor of Personal Insurance (CAPI) in 2015 from the University of Pennsylvania’s Wharton School of Business. He is managing director of Assured Partners’ Bluffton office, specializing in high net worth personal lines of insurance. At AssuredPartners, clients have access to high net worth insurance carriers including Chub ,Cincinnati, Berkley One, AIG, and Pure, along with many others. Rob K. can be reached at (843) 405-8270 or Robert.Kerdasha@assuredpartners.com.
