Levi KeswickAlmost 7 out of 10 American homes are insured by standard policies. With the average home being valued well below the half a million mark, these out of the box policies provide sufficient coverage.
Luxury homes on the other hand, require custom coverage from carriers that specialize in protecting high-value assets. Captive insurance carriers who sell standard policies to luxury homeowners are often leaving those properties underinsured and exposed to financial risk at a time of loss.
Choosing the right insurance carrier, agent and policy for your home is one of your most important financial decisions. The safety and security of your family and investment is worth introducing luxury home insurance to help you determine if you need a second opinion on your home insurance.
What is Luxury Home Insurance?
Luxury home insurance is a relatively new wrinkle in the home insurance market. This type of insurance is geared toward protecting homes valued significantly higher than the national average. Many insurance carriers and agents view these types of policies as unnecessary since their clients don’t have the financial stability to sustain a loss in the first place. Many home owners may find themselves in need of a second opinion on their home insurance.
Although this type of insurance may not feel necessary, losses do happen and the protection provided by an insurance carrier and policy tailored to your home and family’s unique needs could be life-changing.
Luxury Home Insurance – Why It’s Important
A homeowner will typically need home insurance no matter the location, structure, or property value. This coverage can get costly, and some people are worried about the coverage they already have. This concern has caused many Americans to ask if luxury home insurance is even necessary. They reason most people have home insurance is to protect not just their homes but the people who live in them.
The truth is, thousands of Americans live in luxury homes and they will not be able to sustain the financial loss that could hit them in the event of a catastrophic loss. Luckily, certain insurance carriers are now offering protection for homes with luxury features. This can include added living space, multiple stories, outdoor entertaining areas, or valuable amenities such as a home theater.
There is currently no standard insurance policy that is universally offered to luxury homeowners. This means that if you live in a luxury home, you will have to contact a specialty insurer to discuss the best home insurance policy for your unique situation.
Luxury Home Insurance – Why Should You Get It?
Although most people do not live in luxury homes, it can still be worth their time to consider the benefits of luxury home insurance. This type of insurance could add on a relatively small amount to their annual home insurance premium, but provides an enormous amount of security and peace of mind. Only a few insurance carriers sell luxury home insurance, but many homeowners who live in luxury homes should strive to make it a standard part of their home insurance protection.
If you are planning on investing in a home any time soon and are in the market for home insurance to protect the investment, it’s worth your time to discuss your situation with a specialist who can provide the right amount of protection for your unique situation.
Luxury Home Insurance – Types of Coverage
Although all insurance policies differ, most are geared towards protecting your home and standard belongings. This type of coverage is important if you are looking to protect a home that is worth less than the average cost of a luxury home.
However, if you live in a luxury home or are planning on buying a luxury home in the near future, it may be in your best interest to seek additional protection.
Luxury Home Insurance – Additional Coverage for Luxury Homes
Luxury home insurance may not be necessary for all homeowners, but for certain homeowners who live in a luxury home, the protection provided may be the best investment anyone can make.
Additionally, most homeowners who invest heavily in the luxury features of their home will find their home to be an asset of substantial value. This is especially true if you live in a vacation or tourist area.
Many insurance carriers will sell you standard insurance policies for your home, which will protect you in case of a catastrophe. These standard policies provide adequate coverage, but for many, there is more than adequate coverage.
Luxury home insurance will cost extra, but for those who live in either expensive or luxury homes, the extra protection is well worth the cost. For many, the extra protection provided by luxury home insurance will be the difference between their family’s financial security and financial ruin.
For many homeowners, the peace of mind that comes with the right amount of coverage is hard to put a dollar figure on. You can’t predict when a catastrophe will hit, but having sufficient protection in place leaves you worry free, as you know that financial threats will be dealt with should the worst happen. This can help you focus on other important aspects of your life.
Luxury Home Insurance – Who Can Shop for Luxury Home Insurance?
Oftentimes, insurance carriers will write their own standard policies. They use this to set their own rates and determine which homes will be offered their services. If you live in a luxury home or are in the market for a luxury home, it is essential that you consider a policy from a specialty insurer instead of a standard policy from a standard carrier. This type of policy will take into account the added features and costs associated with a luxury home.
It may also be worth your time to consider luxury home insurance if you spend a considerable amount of time and money remodeling your home or paying someone to maintain your luxuries.
The Adler Insurance Group Homowner’s Insurance Policy
This product was recommended by Niles Koenigsberg from FiG Advertising + Marketing
At the Adler Insurance Group, we offer highly customizable insurance policies for Colorado homeowners. Everything from the roof above your head to your personal possessions inside of your home can be protected under our comprehensive homeowner’s insurance policies. We’ll customize the package to your individual needs and make sure your policy aligns perfectly within your budget.
Masterpiece Policy Chubb Prestige Home & Contents
This product was recommended by Kate Diaz from Swanky Den
Chubb is known for providing excellent claims service combined with a quick and thorough response to claims. They also provide payment right away after claim settlement. Their Masterpiece policy is specially designed for families with a high net worth and homes with high value. The policy offers exceptional coverage and pays careful attention to details that other companies may miss, including extended replacement coverage, replacement cost coverage, and cash settlement option. There’s also the unique HomeScan offering that can help reveal issues in your home like missing insulation, leaks, etc. This can help prevent a loss before it can cause damage to your fine home.
AIG Private Client
This product was recommended by Kate Diaz from Swanky Den
AIG may be known for their life insurance, but they have specialized products like the Private Client, which is an insurance policy for high-value homes perfect for your affluent household The comprehensive coverage of this insurance addresses not only larger risks but also potentially expensive gaps that other standard policies leave behind. The superb features of the Private Client include full replacement cost coverage, extended rebuild coverage, cash claims settlement, and additional living expenses.
