Owning a high value home has its own unique set of challenges. With this large investment at stake, it’s crucial to adequately protect your property. Homeowners insurance for high-value homes offers specialized coverage that covers the unique risks and needs associated with these properties. ***

Here are some factors to consider when insuring a high-valued home: 

1. Standard homeowners insurance policies may not provide adequate coverage for high-value homes. Traditional homeowners policy coverage limits may not adequately cover the value of your property and its contents. High-value homes may have custom architectural designs, luxurious finishes, and expensive amenities, which can increase the replacement cost significantly. So, it's essential to get an insurance policy that offers sufficient coverage to protect your investment fully. Your insurance company may also have to underwrite these customized home features to make sure the policy is written correctly to cover the home and its other structures. 
2. Physical structure. Expensive homes usually require guaranteed replacement cost coverage. If there is a covered loss, the policy will pay for the full cost of rebuilding or repairing the property, regardless of the current market value. This coverage is essential, and may even be required by the insurance company, for the cost of rebuilding a high-value home. The insurance premium may also be much higher than the market value due to factors such as custom features and high-quality materials.
3. Personal property. The homeowner's policy must include sufficient coverage limits for valuable possessions, such as jewelry, fine art, antiques, or collectibles. The standard homeowner's policy has specific limits on these items, so an endorsement or separate personal property policy on the jewelry, artwork, collectibles, or other unique property should be considered. These endorsements or policies provide coverage that extends beyond the limits of a standard policy. 
4. Liability coverage. Owners of expensive homes also need higher liability limits to protect them if someone is injured on the property or if they are legally responsible for damages caused to others. A claim may have significant financial claims, so liability coverage that matches the value of the home and assets needs to be added. Personal Liability Insurance policies (commonly known as “Umbrella” insurance policies) give the homeowner an extra layer of liability protection, extending coverage beyond the limits of your homeowner's policy.
5. Other homeowners insurance coverage may include coverage for security personnel or engaging restoration specialists for damaged artwork or furniture. Coverage may also be needed for concierge services to assist with emergency situations, such as arranging temporary housing or coordinating repairs.

When selecting homeowners insurance for a high-value home, the insurance company needs an experienced insurance agent or broker who specializes in it. They can assess the specific risks associated with the property, understand coverage requirements, and customize a policy that meets these needs. Review the policy terms and conditions thoroughly, especially the exclusions and limitations. 

Homeowners insurance for high-value homes protects your significant asset. The specialized coverage ensures that your property, personal belongings, and liability are protected. When selecting homeowner’s insurance for your high-value home, work with your insurance company professional. 

For more information on high-valued homeowner’s insurance coverage and how it can be covered under your homeowner's policy, contact our licensed and experienced insurance consultants at Lindquist Insurance. We can review your coverage with you and make sure your home is fully covered. Call (301) 694-0008 for an appointment. 

We serve the Annapolis, MD, and Frederick, MD areas. 

*** For more information on high-valued homes, visit the Baltimore Banner website.