Finding the Right Coverage for Your Luxury Home

Category: Homeowners and Renters Insurance

A beautiful home is an investment, and with the right insurance policy, your high-value investment will be protected against the many potential losses and damages that could occur over your lifetime.

Unlike the average homeowner’s insurance policy, a high-value home (valued at $1 million and above) requires special attention and consideration. Not only is the structure of the home itself worth more than the average home, but a luxury homeowner typically also has a larger collection of high-value personal items.

Both the home and these items should be documented and appraised. Doing so will ensure that the full value of your home and its contents is not underestimated. Even more, you will have possession of a complete inventory of your personal belongings, documented for your reference in case of a loss.

Individual items of value can be added to your home insurance policy as scheduled personal property. Scheduling your valuable personal property adds a greater degree of protection for those items with separate coverage at its full value. Items that could be scheduled include fine jewelry, musical instruments, furs, artwork, coin collections and anything else that holds a particular value.

There are other types of homes that require unique insurance solutions, including historic renovations, homes with custom finishing work, and gentleman’s farm, with crops or livestock for pleasure rather than profit. It is important to discuss any special considerations with your agent. Together, you will find the right solution to ensure that your home and property are adequately covered.

It should be noted that boats, yachts, and luxury cars are not included in home insurance, and will require separate policies to cover them in the event that something happens to your home. However, these policies can be established in conjunction with your home insurance to provide you with maximum comprehensive insurance from a single insurer.

Luxury homeowners also should consider selecting an umbrella insurance policy. These policies, available for up to $10 million in coverage, protect the homeowner in the incident of a liability lawsuit brought against them, whether someone is injured while visiting their property or an incident occurs outside the home.

As a high-value homeowner, deciding how best to insure your investments can be a complex and difficult decision. Our agents are knowledgeable and skilled in finding solutions for luxury homeowners, throughout Fairfax, Northern Virginia, and the greater Washington, D.C. metro area. We are available to answer any questions you have about your insurance and to help point you in the right direction.

What questions do you have about high-value home insurance? Is it right for you?

Source: O’Connor, Amy. High Value Homeowners Market Healthy Despite Tough Economy. Insurance Journal. Sept. 21, 2010.

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