If you have a high net worth and own a home with a rebuild value of $1,000,000 or more, you will want to consider high-net-worth home insurance to protect your assets both now and in the future. A standard homeowners insurance policy is unlikely to cover the expenses tied to high-value properties and the valuables within.

Insurance for high-value homes is generally comprised of several policy pieces, which allow you to customize the coverage to suit your specific needs. With these policies, you can request more comprehensive dwelling, content, and liability coverage in addition to some other insurance benefits.

Let’s dive into it further.

High Net Worth Home Insurance Offers Several Areas of Expanded Coverage

Higher Dwelling Coverage

Insurance coverage for high-value homes often offer extended replacement cost coverage for your house and other structures on your property. For example, if you live in California and your home was devastated by wildfires, extended coverage options offer reimbursements greater than your defined policy limit. Such local disasters generally increase demand and material prices, making extended replacement cost coverage crucial. Some policies can also include a “cash-out” option, allowing you to fund building at a relocated site.    

In addition to requesting higher coverage limits for your main home (or ‘Dwelling’), you can also request additional coverage for a detached guest house, groundkeeper quarters, pool house or garage.

Higher Contents Coverage

High-value home insurance offers extended contents coverage, allowing you to protect valuables such as antiques, fine art, jewelry, and even expensive wine collections. Features include:

• “All risks” coverage. Provides protection for 16 common insurance perils, which include events such as fire, windstorms, falling objects, and explosions. Alternatively, a “named risk” policy only covers those perils specifically listed in the policy itself.

• Replacement cost. “Actual cash value” options will only reimburse you for the depreciated value of your possessions, whereas “replacement cost” options cover the full cost of purchasing new replacement items.

• Pairs and sets. It can be difficult to replace one item in a pair or set when there are no exact replacements, such as antique fine china, luxury brand shoes, or custom jewelry. When specified, high-value home insurance will cover the cost to replace the whole set or pair.

Higher Liability Coverage

Having a high net worth can leave you more vulnerable to lawsuits in the event you or someone in your household causes bodily injury or property damage to others. Extended liability coverage may be used to cover expenses such as legal fees or settlements, medical bills or lost wages of the injured party, or even libel, slander, and defamation suits.  

 Similarly, if you employ anyone that works from your home, such as a nanny, housekeeper or property manager, high net worth home insurance can be expanded to cover these household workers as well.

Additional Insurance Coverage

High net worth individuals will also want to also consider additional insurance options to protect their estate, including:

• Vintage car insurance

• Umbrella and excess liability insurance

• Boat insurance

• Recreational vehicle insurance

• Jewelry and art insurance

• Life insurance

• Personal Directors and Officers insurance if you sit on any corporate or non-profit boards

Where to Get a Quote for High-Net-Worth Home Insurance

Typically, you won’t be able to get a quote online as the vast majority of online carriers do not offer this specialized form of insurance. Instead, you’ll likely want to work with an insurance broker that specializes in coverage for high-net-worth individuals. Working with a family-owned insurance firm like The Weiser Agency guarantees a higher level of customer care. For high-value home insurance – or any of your personal, business, or life insurance needs – give the Weiser Agency a call at (805) 984-3777 or fill out the contact form here.