High value home insurance is often necessary when your home's value exceeds a certain dollar amount. Currently, this value is $750,000. This type of property is considered high-risk, simply because the insurance company needs to take on a significant amount of risk when insuring the home due to its value. Should the home be considered a total loss, the company faces significant loss. However, like all other forms of home insurance, buyers need to be sure a policy is comprehensive enough to meet all of their unique needs.
What Types of Coverage Do You Need?
With high value home insurance, it's important to have protection against as many risks as possible. This should include:
- Property insurance: This protects the actual structure of the home. It can include dwelling replacement cost coverage, which ensures that if a covered claim occurs and the home is lost, the insurance carrier can pay for its replacement.
- Contents insurance: Verify that the contents insurance you select is high enough in value to cover the value of all of your assets. This should include everything from your clothing to your furnishings.
- Loss of use: In some situations, the property becomes unusable. This could be due to new construction in the area or another factor. This is a rare risk, but because of the value of these homes, your policy should still cover it.
- Valuable article coverage: Many who need high value home insurance also need valuable article coverage. This extends beyond your basic contents insurance to cover high-end valuables you may have. This includes jewelry, furs, computers or other valuable electronics, art, guns, valuable silverware or other items. You'll need to specifically list the items that require coverage and their value.
- Personal liability: Becoming liable for the losses someone else faces can be taxing and very expensive. However, if you are responsible, this component of your home insurance can cover the costs up to the policy limit for the losses and your legal fees. This can include libel and slander coverage, medical payment coverage (up to a certain value) and credit card coverage.
It's important to note that high value home insurance does not mean the actual policy has a high value. Rather, it means your home's market price or replacement value is very high. You may still need to extend your coverage on your policy behind what the basic policy offers to ensure you have comprehensive protection against potential risks.
If you have worked hard and put a lot of time and money into your home, you're proud that its value has climbed. Nevertheless, you may need to have a home insurance policy that's a bit more comprehensive and has higher premiums to cover the value of your home. Your lender may even require that you have this type of protection in place.
Ultimately, high value insurance protects your assets and keeps you financially safe should a covered incident occur. Choose a high value home insurance plan that's right for you.
Get the right coverage for your home. Call Safe Insurance Group at (305) 264-8964 for more information on Miami high value home insurance.