High-Value Home Insurance: Beyond the Basics for Luxury Properties

Standard homeowner policies (HO-3) are built for typical homes. If you own a luxury property—characterized by unique materials, custom architecture, or high-end finishes—you need specialized **High-Value Home Insurance**. These policies are designed to cover the unique exposures and complexities of expensive residences.

Why Standard Policies Fall Short

For custom, luxury homes, standard policies often fail in two key areas:

• Rebuilding Cost: Standard limits may not account for the high cost of specialized labor (e.g., historical restoration, custom millwork, imported materials) required to rebuild the home to its original standard.
• High Sub-Limits: Standard limits on jewelry, fine art, wine collections, and other valuables (Article 22) are far too low for high-net-worth individuals.

Key Features of Luxury Home Coverage

Specialty **Luxury Home Coverage** includes features that protect both the structure and the lifestyle:

• **Extended Replacement Cost:** Provides an extra cushion (often 25% to 50%) above the dwelling limit, ensuring your home can be rebuilt even if construction costs suddenly spike.
• **Cash Settlement Option:** Gives the homeowner the flexibility to take a cash settlement instead of rebuilding after a total loss.
• **Higher Scheduled Limits:** Automatically includes much higher limits for specific valuables without needing separate floaters for every item.
• **Risk Management:** Often includes private risk assessment services to identify and mitigate unique risks (e.g., fire suppression, security systems).

Protecting a unique, expensive home requires an insurance policy designed not just for replacement, but for restoration of the highest quality.