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Everything You Need to Know about High-value Home Insurance

Tuesday, June 25, 2019

Insurance is an important investment for every home buyer. It protects you against any significant losses resulting from unforeseen events that may damage or destroy your property. Choosing the right type of coverage is as crucial as picking the best listing that matches your needs and lifestyle.

Just as the selection of Metro Atlanta homes for sale is wide and diverse, so too are insurance products. For those who own or are buy residential properties in high-end price ranges, a high-value home insurance policy is the ideal choice.

What makes high-value home insurance different from traditional home insurance policies?

Simply put, high-value home insurance provides more comprehensive insurance coverage than standard, traditional insurance policies. In the unlikely event that a major disaster causes significant damage to your home – even total destruction or loss – high-value insurance has features that enable you to rebuild or restore your home to its previous state or value. In some cases, it can even cover increased costs of construction.

Below are some specific examples of advantages you gain from high-value home insurance products:

  • Full cash value payouts. In the event of a total loss and the homeowner chooses not to rebuild the home, a cash settlement option is available. High-value insurance coverage is structured so that depreciation does not apply to any claims.
  • Coverage for high-end personal items. From fine art, to any items you use for business, to jewelry, to your wine collection – all these aspects of your lifestyle can be protected by a high-value insurance policy.
  • Higher claim limits for personal possessions. While traditional insurance can apply to personal items, coverage is typically capped at $1,000 to $2,000. On the other hand, high-value home insurance can cover the full amount needed to replace these items.
  • Coverage for additional living expenses. In case major reconstruction is required for your home, high-value insurance can cover the costs of finding an alternative place to stay that meets your standard of living.
  • Protection from libel, slander, identity theft, and more. High-net-worth individuals can use high-value home insurance to protect themselves from nefarious activity targeting their wealth.
  • A more cost-effective means to secure protection. You can upgrade standard insurance policies by purchasing additional insurance riders, but this is a far more expensive. These riders also tend to be limited.

When should I consider choosing high-value home insurance?

The simplest way to tell whether you should apply for a high-value home insurance policy is to check what your home is worth. A property valued at $750,000 or higher makes you eligible for these products and the benefits they provide in worst-case scenarios.

Because home values vary from one area to another, another way to determine whether high-value home insurance is right for you is to evaluate your lifestyle.

Consider high-value home insurance if you are a homeowner or buyer with a keen eye for the finer things in life. This type of coverage is useful when:

  • You own a historically significant property or a heritage home
  • Your property features unique design elements that increase its value
  • Your home was designed by a renowned interior designer or architect
  • You own a secondary/vacation home
  • You own collections of fine art, jewelry, rugs, and other collectibles of high value
  • Your home is fitted with special features like a smart home setup, eco-friendly heating and cooling solutions, and solar energy systems
  • Your property includes luxury amenities, like swimming pools, guest rooms, recreational facilities, and special landscaping

High-value home insurance is not limited only to single-family houses; high-end condo owners and even luxury apartment renters can also use this option.

How much will high-value home insurance cost?

High-value home insurance fetches higher premiums. But every dollar you spend is certainly worth it because of the greater peace of mind that you get in return. High-value home insurance products offer the best protections that let you enjoy your lifestyle to the fullest – even if calamity gets in the way.

In the end, your decision to buy a high-end home should warrant consideration of high-end insurance. If everything about your home and lifestyle is above-average, it deserves above-average care and protection as well.

Learn more about your home insurance options from one of the top real estate agents in Atlanta

Make the most out of living in Metro Atlanta’s wonderful communities. Call me at 404-550-5113 or email natalie(dotted)gregory(at)compass(dotted)com for more tips and insights to share about protecting your biggest investment – your home.