You need enough high-value homeowners insurance to cover your home and belongings and enough liability insurance to properly cover your assets if you’re sued.
Home insurance companies can estimate your house’s replacement value, which you’ll use to select your dwelling coverage limit. This covers the structure of the house. Your dwelling coverage also influences your contents coverage, which is usually a percentage of dwelling coverage (such as 50%) and covers your belongings. You may be able to increase the percentage if you need more coverage for possessions.
You can also schedule personal property, which covers expensive items separately from your contents limits. You can schedule items like artwork and jewelry.
You also want to determine your net worth, including your home, to decide how much liability insurance you need. People with a high net worth can be lawsuit targets, so being properly insured is critical.
What Are Things to Consider When Purchasing High-Value Homeowners Insurance?
Les Masterson
Insurance Editor
Jason Metz
Insurance Lead Editor
Michelle Megna
Insurance Lead Editor
Estimate Your Net Worth
Liability insurance plays an important role if you’re sued for injuries or damage that you accidentally cause. Figure out how much liability coverage you need by evaluating your assets. Home insurance policies often provide liability insurance up to $500,000. If you need more, you can buy umbrella insurance.
Look for Insurers That Specialize in High-Value Homes
Home insurance rates are important, but we also suggest owners of high-value homes look at high-value home programs offered by insurers like Chubb and AIG’s Private Client Select. These kinds of high-value policies can provide high levels of liability coverage and offer special coverage options that address your needs.
Check Into Guaranteed and Extended Replacement Cost Coverage
Some home insurance companies offer guaranteed or extended replacement cost coverage, which lets you extend your dwelling coverage limit if building costs and inflation push your home’s replacement value above dwelling limits. There is an added cost to these add-ons but it’s worth considering.