Homes with six or more bedrooms, properties outfitted with rare antique art items, and villas that spread across acres of land are of high value. Standard home insurance won’t be sufficient for such properties in case a burglary or theft occurs or natural disaster strikes. That’s because high-value homes have a predefined high worth which is typically based on rebuild expenses, cost of contents, and the value of jewels, antiques, and art.
As a high-value homeowner, you must be wondering if there’s a way for insuring your property worth thousands of millions and other valuable assets, right? Availing high net-worth home insurance is well a worthy solution to safeguard your acres of property and other assets against unforeseen circumstances.
Also known as high-value insurance, high-net-worth insurance is intended for customers with expensive valuables and luxury homes who want more coverage than a standard insurance policy can offer.
Considering the fact that most homeowners aren’t aware of what high net-worth insurance is, we decided to curate a guide on the same. Continue reading to learn the basics of high-net-worth insurance, so you can decide if it’s ideal for your needs.
The difference between debts and assets is known as net worth. Anyone or anything whose net worth is above average has a high-net-worth. A recent survey conducted by the Federal Reserve states that the mean household net worth in the United States is $748,800, while $121,700 is the median household net worth.
High-Net-Worth Insurance: What Is It?
high-net-worth insurance, often referred to as high-value insurance, is tailored for wealthy property owners. Such an insurance plan offers comprehensive coverage for properties whose value is considerably higher than standard properties.
Typically, a high-net-worth homeowners insurance policy extends protection to the assets mentioned below:
- Rental Properties
- First homes, like small houses and flats, and second homes, such as additional residence
- Vacation homes
- Antiques, heirlooms, and collectibles
- Wine collections
- Fine Jewelry
- Golf carts, RVs, and motorcycles
- Vintage collections
- Fine arts
- Yachts and boats
- Luxury vehicles
Some high net-worth insurance providers like Securance Corp also offer higher coverage limits for both professional and personal liability. Additional coverage options included in high-net-worth programs of Securance Corp are:
- Damages related to extortion, ransom situation, or kidnapping
- Workers’ compensation for domestic workers
- Employment practices liability
- Cyber coverage
Located in Houston, Texas, this insurance agency offers high-value automobile insurance alongside business insurance. To provide customers with competitively priced tailored coverage solutions, the firm uses a wide network of premier insurance companies.
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Benefits of a High-Value Home Insurance Policy
Here’s what you’ll reap by buying high-value home insurance:
1. Protection From Potential Disasters
A standard policy wouldn’t be much beneficial if your home is located in danger zones.
Like, homes in hilly regions are vulnerable to landslides. On the other hand, floods are a common occurrence in coastal regions. In such areas, natural disasters can strike at any time and cause grave destruction.
Without high-value insurance, homeowners are at risk of losing all their savings in repairing or rebuilding their residences. Meanwhile, you can safeguard your funds by buying a high-net-worth insurance policy, as most expenses will be covered by the policy.
2. High Sum Insured
Homeowners who own homes with great market value, especially those located in posh areas, won’t be able to recover damages from standard insurance policies. That’s because such policies offer minimum coverage on the sum insured.
Because high-value insurance policies offer high coverage limits, homeowners will be able to recover damages without any trouble. high-net-worth insurance is particularly helpful for homes with costly contents like lakhs of jewelry, paintings, and so on.
3. Lesser Exclusions
Another significant benefit of a high-net-worth home insurance policy is lesser exclusions.
Compared to a basic insurance policy, a high-net-worth insurance policy offers coverage for damages or loss of articles consumable in nature, theft and burglary, unexplained losses, and so on.
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high-net-worth homeowners insurance is in no way similar to your run-of-the-mill or standard insurance policy. It’s designed to offer coverage to high-value homes and valuable assets which standard insurance policies lack.
The only caveat of a high-value insurance policy is the high cost. Against this one downside, you’ll be reaping plenty of benefits like coverage for water damage, flood, theft, burglary, guaranteed replacement cost coverage, and so on.
In essence, high-net-worth insurance is ideal for individuals living in high-value homes because it safeguards assets and other valuable items, which wouldn’t be possible otherwise.