Not all insurance companies are created equal. The majority seem to pride themselves on providing cookie-cutter policies that meet minimum requirements. For the over 10% of Americans who reside in a home worth more than $500,000, bare-bones coverage is not enough. High net worth insurance companies are those that specialize in meeting the unique needs of the upper class. These companies are used to working with the larger limits that their affluent customers need. Insurance companies that appeal to the mass market can often undersell policies to uninformed customers who may not realize that they need more coverage.
High net worth insurance companies also have access to the specialized products that people with more assets typically need. When a modest home is damaged, it is reasonable to let the homeowner assume some of the repair costs through a high deductible and lower payout limits. This arrangement is a manageable way to lower premium costs for those who may be struggling to make ends meet. However, those living in luxury homes will typically have higher repair costs in the event of damage. For these customers, it is often worth the price of a higher premium to lower the deductible and ensure that the policy covers everything fully. The higher costs of full coverage provide benefits like deluxe accommodations while workers repair the house and full home replacement payouts.