When it comes to insuring high-value, high-end homes, more often than not homeowners end up with gaps in their coverage. The most common of these comes from the sheer costs of materials that go into rebuilding one of these houses after a windstorm, fire, or other covered loss. Those materials, many of which are custom, and the specialty labor that goes into installing them, can leave you paying for some of the costs out of pocket, should your insurance fall short.
Other potential gaps in coverage include flood damage, issues bringing the newly rebuilt structure up to code, and not having the content of your home, as well as other buildings on your property, properly added to your insurance.
How can you avoid all of these headaches? Here are some things to keep in mind when taking out a homeowner’s insurance policy on a high-value home.
Rebuild Cost vs. Market Value
When a high-value home is insured, in most cases, the amount of coverage is based on the market value of the structure. This isn’t ideal because the cost of reconstruction is often higher, due to the cost of materials and labor, especially if you have specialty items in the home, like custom flooring and countertops. If you add any of these things to your home, you’ll need to change your insurance coverage to make sure that you have enough to rebuild without paying out of pocket.
Custom Materials and Craftsmanship
There are many things that can make the cost of rebuilding your home rise significantly. Examples include specialty roofing materials, ornate hardwood flooring, plaster, custom windows, and imported stone. Consider the historic details, if there are any, as they need to be rebuilt by experts, who charge quite a bit for their services.
Extra Features That Need to be on the Policy
It’s common for other structures on the property to get overlooked on homeowner’s insurance policies. Your guest house, outdoor kitchen, garages, pool house, and any fences of gates need to be listed on your policy in order for them to be covered should they be damaged by wind, rain, or a fire.
The Contents of Your Home
High-value houses often have contents that match. Your expensive collections of watches, jewelry, handbags, and more all needs to be properly covered, which in many cases requires a special insurance rider or policy.
Consider Adding Loss Prevention Features
All of these additions to your homeowner’s insurance can make for a hefty policy price. Thankfully, there are some loss prevention features that you can add in order to get a discount on your premiums and protect your home and its contents. Things like updating your plumbing and electrical systems, adding a security system that includes smart monitoring and fire protection, and ensuring that a leak detection and automatic shutoff systems is working. Maintenance logs can help with this.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance coverage for your high-net-worth home? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.