A high value home coverage program makes sense for a only a small number of people, but for those people, the stakes are truly high. Some estimates suggest that as many as 40% of high value homes are underinsured. Given that almost half of these homes are in high-catastrophe areas where the risk of natural disaster is significant, many homeowners will not have enough insure to cover losses in the event of significant damage or a total loss.
Special Considerations
High value homes often combine a number of different features that can lead owners to purchase less than optimal levels of coverage. Custom work and add-ons, for instance, may not have been addressed. A high value property that is not occupied full-time may be offered as a vacation rental, which would also require additional coverage.
High Value Features
Not every policy looks the same, but many of these programs include:
- generous living expenses allowance if the property requires extensive repair
- extended replacement cost to fully restore properties even when the cost is beyond policy limits
- cash settlement for homeowners who choose not to rebuild
- risk management services designed to reduce losses
A high value home coverage program is part of a larger strategy of protection and risk reduction for homeowners whose substantial assets require a more tailored approach. Ultimately, the right coverage offers both property protection and peace of mind.
