For those that own homes costing more than $750,000, the insurance needs will be different from that of a typical homeowner. Since the home is worth more, the costs to replace the home or repair damages will be much higher. Buildings of historical or architectural significance, those constructed from rare or expensive materials, or even condos and luxury homes can need insurance for high-value homeowners.
The Challenges of Insurance Coverage
The price of the home is the most significant challenge when trying to secure a comprehensive insurance plan. The personal liability of the owner is also higher, as are the limits needed for personal property. Wealthy homeowners often have more expensive interior furnishings and collections, as well as exterior features that are potentially hazardous. Though higher limits are needed, many high-value policies will come with standard baseline features.
The Coverage Areas
The common baseline areas of coverage include protection against injuries or damages that occur on or off the property. It also covers the legal fees if you are sued. A wealthy homeowner may have a feature like a swimming pool or tennis court, and even if you haven’t given someone permission to use the facility, you could be responsible for injuries that occur. Your policy may also be written to include living expenses, identity theft coverage, sewer or pipe backup, partial loss, or no-cost home inspections.