By Haig Artan
Homes with a higher market value are generally in a more desirable geographic location and coincidentally are homes with a greater reconstruction value. Insurance premium is tied to the reconstruction value of a home; in the event of a loss, high value home insurance will repair or reconstruct the damaged property .
High value homeowners have carefully selected to live in homes that are usually well customized with luxury kitchens, high vaulted ceilings, crafted molding and upgraded fitted appliances. Floors are usually constructed of expensive marble and counters are often constructed of granite. A high value home cannot be compared to an average home and should be insured by a luxury home insurance policy; a policy that covers the enhanced desires of the high value homeowner.
Insurance for high value homes should be customized to tailor the needs of the homeowner; the customization of the policy will reflect the customized construction of the home and the required insurance for the personal property the homeowner possesses.
Items that are generally expected in a high value home insurance policy are as follows:
- Extended replacement cost of the dwelling up to 200% of the limit listed on the policy
- Building code upgrade up to the full limit of the policy
- Increased limits of jewelry, furs and silverware
- Water backup coverage up to the full limit of the policy
- Inclusion of Personal Umbrella Coverage for qualified homeowners
- Identity theft coverage
- Personal computer coverage including recovery of data
The above are simply examples of coverage that in most cases may not be available on a regular home insurance policy.
The select few insurance underwriters providing this level of insurance offer a complimentary appraisal service paid for by the insurance company; the companies offer the homeowner a free detailed copy of the appraisal with color photos for safekeeping. This is truly an excellent way to assure that the homeowner has adequately insured the investment. The service also offers the insurance company a method of properly underwriting the risk and provides sophisticated loss control techniques.
Although it may not always be the most economic option, it is advisable to place one’s automobile insurance with the same carrier thus securing a multi policy discount and in most cases, qualifying to add a personal umbrella endorsement thereby offering you a superior claims experience handled by one company in the unfortunate event of a loss.
If a homeowner should decide to carry the automobile insurance separately, it is a better idea to attempt to purchase the personal umbrella policy from the same carrier that handles the auto insurance.
It is imperative that a homeowner of a luxury home adequately insures the home with a high value home insurance policy thereby providing the financial security and peace of mind expected by most homeowners.