Understanding the unique coverage needs of high-value homes

Your home is much more than just the place you live. It’s a reflection of your own and your family’s hard work. One part financial investment, one part emotional investment – plus a one-of-a-kind expression of you – it deserves protection. Whether your home is a luxurious city walk-up, a heritage estate on a hundred hectares of land, or something else altogether, its unique aspects call for high-value home insurance, so you, your home, and everything attached to it stay safeguarded.

What defines a high-value home?

Most insurance providers define a high-value home as one with a replacement cost value of $750,000 or more. Depending on a company’s preferences, some may include homes with a lower replacement cost value (such as $500,000) or a higher one (of $1 million and up).

No matter where the line is drawn, because of the home’s unique features, the luxury contents housed within it, and even the elevated risks faced by the high-wealth individuals who own it, a standard homeowner’s insurance policy won’t supply the necessary protections.

Why high-value home insurance policies differ from standard policies

Along with the house’s features, owners of high-value homes often have unique assets that require additional coverage. High-value home insurance includes extra features and higher coverage limits to reflect this reality.

Enhanced protections can include:

Home, out-building, and landscaping coverage
It’s obvious that modern homes boasting massive square footage or featuring cutting-edge design elements will require increased coverage, but classic homes can be just as pricey to reconstruct. Country homes with coach houses and stables are high value not just because of the extra square footage they feature by way of outbuildings, but also because their stone masonry and woodworking techniques can be challenging for even today’s artisan contractors to replicate.

Built-in appliances and professional culinary equipment like a vintage espresso machine or a wood-fired pizza oven brought brick by brick from Italy call for enhanced coverage. Exclusive fixtures, unique finishes, and materials that are imported or are from renowned brands such as Perrin & Rowe are expensive to replace. But countertops made of enamelled lava or Carrara marble are just as exclusive.

Landscape features in high-value homes can stand out. Privacy fences woven from ficus trees that took 20 years to grow, an onsite olive grove made from trees imported from Greece, or modern snow-melting systems for walkways and driveways all require the increased reimbursement that, typically, only a high-value home insurance policy can provide.

Lastly, home amenities such as outdoor or indoor pools, tennis or basketball courts, screening rooms, and skateparks all warrant supplementary coverage.

Equipment breakdown coverage
Sophisticated and highly automated plumbing, electrical, refrigeration, HVAC and climate control systems, as well as specialized maintenance equipment, make high-value homes the model of efficiency when everything works as it should. But when bespoke systems or specialized equipment breaks down, repairs can run into the tens of thousands of dollars. Insurance for high-value homes considers this and usually includes policies and limits designed to get these complex or custom systems up and functioning fast.

Personal property coverage
Owners of high-value homes appreciate high quality and convenience, and as such they need protection for their possessions and quality of life. Items not typically protected in a regular homeowner policy that are often covered under a high-value home insurance policy include:

Antiques and collectiblesCars, motorcycles, and motorhomes

Private airplanes and helicopters

Water damage coverage
The structural integrity of any home can be compromised by water leaks and floods, severely affecting walls, floors, ceilings, and even foundations. Repairs for water damage to high-value homes and the replacement costs for high-end furnishings and contents damaged by water can be steep.

Because the stakes are so high, in order to prevent, detect, and reduce water damage, owners can install inexpensive, wireless smart home water monitoring and shut-off systems, and may receive discounts on their high-value home insurance policy as a result.

Protect the people and things that matter the most

Get peace of mind with unlimited replacement cost coverage for your home and personal contents, plus enhanced protections where you need them most with a personalized policy from Northbridge Insurance. To learn more, visit our high-value home insurance page today.