Home insurance coverage options for homeowners with high-value properties

For homeowners who maintain luxury homes and have high net worth, the typically best homeowners insurance policy is likely not sufficient. High-value home insurance is designed specifically for these property owners.

The policies offer higher property coverage limits and better protection for assets and their owners.

What is a high-value home?

The classification of high-value homes varies based on geographical location. While a $300,000 home might be considered high-value in certain regions, it may be relatively standard in others. However, irrespective of location, specific criteria must be met to secure high-value homeowners insurance. Typically, a high-value home is defined as one with a replacement cost value of $750,000 or more for dwelling coverage. Replacement cost value refers to the amount required to rebuild a home to its original state.

When determining a home’s replacement cost value, insurers consider the comprehensive expense of rebuilding. This encompasses structural repairs, flooring, cabinetry, roofing, and built-in appliances. Even homes of modest size can possess a high replacement cost value when all these factors are considered collectively.

High-value homes are typically characterized by a value exceeding $750,000, although some policies may exclusively cover homes valued at $1 million and above.

For homes of such value, standard homeowner insurance policies may not offer adequate coverage for both the home and its contents, including antiques, artwork, and jewelry. While insurance companies offer endorsements to bridge coverage gaps, owners of high-value homes could still face significant underinsurance.

High-value home insurance policies are tailored to address the coverage needs of high net worth households with unique requirements. Notable options include:

– AIG’s Private Client policy
– Chubb’s Masterpiece policy
– Cincinnati’s Executive Capstone policy
– Kingstone’s high-value homeowners policy
– PURE’s high-value homeowners policy
– Travelers’ high-value homeowners policy


What does high-value home insurance cover?

A high-value homeowners insurance policy differs significantly from a standard homeowners insurance policy in terms of coverage type and limits. Here are some features typically provided by a luxury homeowners insurance policy:

Higher coverage limits

High-value homeowners insurance policies often offer more comprehensive coverage compared to standard home insurance policies. Many luxury home insurance policies provide coverage for your home and personal belongings at their replacement cost value on an open perils basis. This implies that any losses not explicitly excluded are covered. Additionally, you may receive higher coverage limits for valuable items and supplementary perks with your additional living expenses coverage.

Additional coverage options

A high-value home insurance policy often incorporates additional coverage types that are not commonly included in standard home insurance policies. For instance, many luxury homeowners insurance policies may automatically encompass water backup, landscaping, identity theft, and business property coverage. In standard home insurance policies, you typically need to add these coverage options manually, often at an extra cost.


Policy perks

Certain high-value home insurance providers offer exclusive perks for policyholders. These benefits vary depending on the insurance company, but some may include complimentary home appraisals, a cash settlement option in case of total loss, deductible waivers for specific losses, and risk consulting services aimed at mitigating risks within your home.

Dedicated customer service

Upon obtaining a high-value homeowners insurance policy, clients often gain access to personalized customer service. In such instances, policyholders are frequently matched with a dedicated concierge or personal representative. These professionals assist in various aspects of the insurance process, including filing claims, coordinating property appraisals, arranging contractor services, and facilitating accommodations if necessary under loss of use coverage.

Increased Coverage Limits Under a High-Value Home Insurance Policy

High-value home insurance policies typically diverge from standard policies in several key aspects.

Better Dwelling Coverage

Homeowners insurance policies typically provide coverage for damage to your house (dwelling coverage) and belongings (contents coverage). In a standard policy, your dwelling is insured for a specified amount as indicated on your policy’s declaration page.

High-value home policies often surpass standard policies by offering extended replacement cost coverage for your dwelling and other structures. This feature ensures reimbursement for home repairs exceeding the amount listed on the policy. Such coverage becomes particularly significant if local construction costs escalate following a disaster, such as a tornado.

Additionally, a high-value home insurance policy may include a “cash out” option. This provision allows you to receive an insurance settlement and rebuild elsewhere in the event of complete destruction of your home.


Better Contents Coverage

For owners of luxury homes, ensuring adequate insurance coverage for possessions is often a top priority, given the presence of valuable personal items within their residences.

For instance, a Kingstone Insurance high-value home policy in New York offers enhanced coverage for possessions, including:

– Higher levels of contents coverage
– Blanket jewelry coverage up to $150,000, with a limit of $10,000 per item
– $25,000 coverage for the breakage of antiques, fine art, and collectibles

High-value home policies elevate the standards in contents coverage in several ways:

1. “All risks” coverage for contents: While a standard home insurance policy typically covers dwellings for all risks, contents are often protected from only 16 “named perils” such as fire and lightning. In contrast, high-value home policies provide coverage for contents against all risks.

2. Replacement cost: With a standard policy, you usually have the option to insure possessions under “actual cash value” or “replacement cost” coverage. Replacement cost coverage is preferable as it reimburses you for new items to replace the damaged ones. High-value home insurance policies generally include replacement cost automatically, ensuring you receive reimbursement for the full value of the lost items, rather than their depreciated worth.

3. Pairs and sets: Damage to one item in a pair or set can pose challenges when an exact replacement is unavailable. High-value homeowners insurance typically covers the replacement of the entire pair or set, providing comprehensive protection for valuable collections.

Better Liability Coverage

For individuals with substantial assets, robust liability coverage is paramount as it safeguards against the potential loss in a lawsuit, especially considering the attractiveness as a target for legal action.

High-value home insurance policies offer liability coverage akin to standard policies, allowing you to select a coverage limit. However, they often extend additional provisions, such as covering legal defense costs outside the liability limit. This ensures that a larger portion of the coverage is available to settle legal judgments and claims.


Moreover, liability insurance within these policies may encompass personal injury coverage, including protection against libel, slander, and defamation—a feature typically reserved for umbrella insurance policies.

Furthermore, high-value homeowners insurance policies grant access to substantial excess liability coverage, reaching significant amounts such as $50 million (Chubb) or even $100 million (AIG), providing unparalleled protection against potential liabilities.

Additional Increased Coverage

A high-value home insurance policy typically surpasses standard coverage by offering:

1. Automatic coverage for sewer backup.
2. Increased coverage limits for replacing shrubs and trees.
3. Enhanced reimbursement for tree removal, often up to $1,000 per fallen tree.
4. Elevated medical payments limits, such as $10,000 compared to the standard $1,000, covering injuries sustained by visitors, regardless of fault.
5. Expanded coverage for credit card, forgery, and counterfeit money incidents, often up to $10,000, exceeding the standard $500 limit in typical policies.

Additionally, high-value homeowners insurance may include:

Flood insurance, addressing a gap in standard policies and providing sufficient coverage for luxury properties.
Coverage for vacation and second homes, allowing for customization to protect multiple properties.
Personal kidnap ransom and extortion coverage, available from insurers like AIG and Chubb, offering financial protection and crisis management services in dire situations.
Deductible waivers for substantial losses, ensuring no out-of-pocket expenses if damages exceed a certain threshold, often set at $50,000 or more.
Complimentary home appraisal services, either fully covered or cost-shared, to assess property value accurately.
Risk management services, such as Chubb’s wildfire defense service, offering on-site assessments and preventative actions to mitigate risks in disaster-prone areas.

Best companies for high-value home insurance

Based on our thorough analysis, top-tier insurance companies catering to high-value homeowners include The Hartford, Farmers, Chubb, and PURE Insurance. These industry leaders offer comprehensive coverage options and tailored policies designed to meet the unique needs of affluent clientele. With a focus on exceptional service and reliable financial strength, these companies consistently rank among the best in the industry.

Our selection process involved meticulous scrutiny of coverage offerings, policy features, and average premiums sourced from Quadrant Information Services. Additionally, we considered J.D. Power customer satisfaction ratings and AM Best financial strength ratings to ensure that selected insurers possess a track record of fulfilling their financial commitments and delivering superior service to policyholders.


Company J.D. Power score Average annual premium for $750,000 dwelling coverage













Not rated


Cost of high-value homeowners insurance

In the United States, the average annual premium for high-value home insurance, providing $750,000 in dwelling coverage, stands at $3,761, equating to approximately $313 per month. Conversely, standard home insurance policies, offering $250,000 in dwelling coverage, have an average annual premium of $1,428, roughly $119 per month.

It’s important to note that homeowners insurance costs vary based on individual circumstances. Premiums are determined by factors such as your location, claims history, policy specifics, coverage limits, chosen deductible, and applicable discounts. Additionally, in many states, ZIP code, home age, and credit history also influence premiums, although not all states allow the use of these factors in rating.

How much high-value homeowners insurance do I need?

Determining the appropriate amount of high-value home insurance entails a thorough evaluation of several factors. Here’s a comprehensive guide to help you navigate this process:

1. Replacement Cost Value of Your Home: Begin by assessing the replacement cost value of your home. This figure represents the amount required to rebuild your house to its original condition after a covered loss. For instance, if rebuilding your home would cost $1.5 million, ensure your dwelling insurance covers at least that amount.

2. Personal Property Coverage: Evaluate the value of your personal belongings, encompassing clothing, furniture, appliances, and décor. Creating a home inventory can aid in estimating this value. Most insurers automatically include 50 to 70 percent of your dwelling coverage for personal property. Consider whether this amount adequately covers your belongings or if adjustments are necessary.


3. Liability Risks: Assess your liability exposure. While standard policies typically offer a base liability limit of $100,000, high-value homes might necessitate higher limits, especially if you have features like a pool or entertain guests frequently. Consider increasing your limit or opting for an umbrella policy for added protection.

4. Additional Living Expenses: Factor in coverage for additional living expenses. This provision applies when your home becomes uninhabitable due to a covered loss, assisting with lodging, food, and other expenses until you can return.

5. Unique Circumstances: Tailor your coverage to suit your specific circumstances. High-value home insurance policies often offer endorsements for identity theft, water backup, and service line coverage, among others. These endorsements allow you to customize your policy to address your unique needs.

Given the complexity of insurance considerations, consulting with a licensed agent is advisable. Independent agents, in particular, can offer insights into coverage requirements and assist in selecting the right carrier based on your individual situation. Their expertise ensures that your coverage aligns with your needs and provides adequate protection.

Things to consider when purchasing high-value homeowners insurance

When purchasing a high-value home insurance policy, it’s crucial to consider the following factors:

1. Coverage Amount: Ensure that the coverage you select adequately protects your property and assets, especially if you’re new to home insurance. Assess your needs carefully to determine the appropriate level of coverage.

2. Customer Service: Opt for an insurance provider known for exceptional customer service, ideally offering a dedicated client concierge. Utilize their expertise to tailor a comprehensive policy that mitigates risks and provides sufficient coverage for your home and personal belongings.

3. Replacement Cost Coverage: Understand how your policy calculates the cost of restoring your home and possessions. Policies typically offer either actual cash value, accounting for depreciation, or replacement cost coverage, which does not. Additionally, some policies may include extended replacement cost coverage, providing a payout exceeding the policy limit in case of a total loss.


4. Premium: While price shouldn’t be the sole consideration, it’s essential to assess the premium in relation to the coverage provided. High-value home insurance policies tend to be more expensive due to their comprehensive nature. Compare quotes from multiple providers to ensure you’re getting competitive rates and explore available discounts to optimize cost-effectiveness.

5. Additional Coverage: High-value home insurance often includes supplementary coverage not available with standard policies. This may encompass coverage for vacation homes, dedicated risk management assessments, extended replacement cost coverage, and cash settlements for total losses from covered perils. Evaluate these additional features to enhance your policy’s comprehensiveness and suitability to your needs.

By meticulously considering these factors and consulting with insurance professionals, you can secure a high-value home insurance policy that offers robust protection and peace of mind for your valuable assets.

Frequently asked questions

Determining the best homeowners insurance company is a personalized process influenced by various factors such as your coverage needs, location, and budget preferences. It’s essential to identify company-specific attributes that align with your priorities, such as financial strength ratings, customer service standards, and third-party evaluations like those from J.D. Power. By assessing your requirements and obtaining quotes from multiple insurers, you can pinpoint the optimal match for your circumstances.

While the benchmark for high-value homes typically revolves around a replacement cost value of approximately $750,000, this threshold varies depending on regional home prices and living expenses. Homes boasting custom features, upscale finishes, or exceeding standard sizes in the area may warrant consideration for high-value insurance coverage. Consulting with an insurance agent can offer clarity on whether this specialized coverage aligns with your property’s profile.

Not all insurers offer standalone high-value home insurance; some operate under separate entities or branding. For instance, Nationwide and AIG extend high-value coverage through dedicated segments like “Private Client.” It’s essential to discern whether an insurer provides tailored options for high-value properties or if coverage limitations exist based on dwelling amounts. Expert guidance from an insurance agent can help navigate these nuances and identify the most suitable carrier for your needs.

The HO-5 policy represents the pinnacle of home insurance coverage, offering comprehensive protection on an open peril basis. Tailored for high-value homeowners, this policy form typically encompasses additional features that may vary among insurers, providing an extensive safeguard against unforeseen risks.

While high-end insurance companies often command higher premiums due to enhanced coverage features and limits, your actual rate is contingent on individual factors such as property characteristics, location, and personal background. By exploring multiple options and leveraging competitive pricing, you can secure a high-end policy that balances comprehensive protection with budget considerations.

High-value home insurance compared to standard homeowner insurance

High-value home insurance distinguishes itself from standard homeowner insurance in several key aspects. Firstly, while standard policies typically cover homes up to $2 million, high-value home insurance extends coverage to properties starting at $1 million and can exceed up to $100 million. This higher coverage threshold reflects the elevated value of these properties and the unique risks they entail.

Secondly, high-value home insurance offers more extensive coverage limits and a broader range of services compared to standard policies. Given the complexity associated with high-value homes, such as additional amenities like pools or in-home employees, these specialized insurance products are tailored to address the specific needs and nuances of affluent homeowners.


Increased coverage limits

One of the key advantages of high-value home insurance lies in its elevated coverage limits. These higher limits provide comprehensive protection not only for the overall property but also for valuable individual items housed within the home. Items such as artwork, cash, jewelry, silverware, electronics, currency, firearms, and antique furniture receive enhanced coverage, ensuring that your assets are safeguarded against various risks and perils.

Additional coverage options

In addition to elevated coverage limits for both your property and personal belongings, high-value home insurance extends coverage to areas where standard policies may offer limited protection or none at all. Depending on the provider, high-end insurance policies may include enhanced coverage options such as:

1. Guaranteed Replacement Cost Coverage: Provides full reimbursement for the expenses associated with repairing or rebuilding your home.

2. Identity Fraud and Ransom Coverage: Protects against the costs incurred due to identity theft or ransom demands for your home or belongings.

3. Additional Living Expenses Coverage: Covers expenses for alternative accommodation and meals if your home becomes temporarily uninhabitable.

4. Sewer and Pipe Backup Coverage: Addresses the costs related to sewer or sump pump backups.

5. Cash Settlement Coverage: Offers financial compensation to rebuild your home entirely or contribute toward a new property or venture in the event of a total loss.

6. Risk Assessment/Home Inspection Coverage: Funds an onsite inspection by insurance experts to identify potential risks and recommend appropriate coverage options.

7. Deductible Waiver Coverage: Waives the deductible in the event of significant losses.

8. Loss-Prevention Coverage: Covers the expenses for implementing systems or repairs aimed at preventing future losses, such as home security or leak detection systems.

9. Employment Practices Coverage: Protects against allegations of discrimination or wrongful termination from in-home employees.

10. Landscaping Coverage: Addresses the costs of landscaping repairs.

11. Home Contents Coverage for All Perils: Extends coverage to your home’s belongings for all types of risks.

12. Second Home Coverage: Provides coverage for a second home or vacation property.

These comprehensive coverage options ensure that high-value homeowners are adequately protected against a wide range of risks and perils, offering peace of mind and financial security.

Common exclusions in high-value insurances

While high-value insurance typically offers fewer exclusions compared to standard policies, it’s essential to be aware of certain exceptions. The most common exclusions in high-end homeowners insurance plans may include:

1. Loss or damage resulting from terrorism or war.
2. Loss or damage caused by gradual deterioration, such as rust or general wear and tear.
3. Loss or damage arising from flooding.

It’s worth noting that exclusions can vary among insurance providers, so it’s advisable to request a comprehensive list of exclusions from your prospective provider to ensure clarity and understanding.

What does high-value home insurance cost?

High-value home insurance lives up to its name by commanding higher premiums compared to standard home insurance policies. The precise cost of a high-value home insurance plan is contingent upon various factors including the location of your home, the type of policy selected, the insurance carrier, and your individual claims history.

On average, annual premiums for standard home insurance policies, typically covering a dwelling valued at $250,000, hover around $1,393 per year (equivalent to approximately $116 per month). In contrast, premiums for high-value home insurance policies, covering dwellings valued above $750,000, typically range from approximately $1,800 to $2,700 annually, depending on the insurer.


Who is high-value home insurance for?

High-value home insurance is tailored for individuals who possess homes valued at $750,000 or more and seek comprehensive protection for their assets, offering extensive coverage in the event of emergencies or losses. This specialized insurance is particularly beneficial for those with substantial assets, as it provides enhanced safeguards against risks such as ransom or identity fraud.

Consider high-value home insurance if:

You own a high-value primary residence.
You own both a high-value primary residence and a secondary property.
Your home possesses historical significance, rendering it more susceptible to damage or destruction.
Rebuilding your home after a loss would be challenging due to its older construction or the use of rare materials.
Your residence features high-end appliances and materials that would pose difficulties in sourcing replacements following a loss.
You possess valuable collections of art, jewelry, or furniture housed within your home.
Your home boasts unique amenities, such as an indoor pool, which would be challenging to replicate in the aftermath of a loss.

Other high-end insurance clauses to consider

For individuals considering high-end insurance options, exploring other types of luxury insurance may also be of interest:

Second home insurance
Insurance tailored for luxury vehicles or boats
Valuables insurance to protect high-value possessions such as jewelry or fine art
Comprehensive travel insurance for enhanced coverage during trips
Umbrella insurance to provide additional financial protection beyond the limits of your high-value insurance policy

Insuring a high-value home

As a homeowner, securing dependable homeowners insurance is essential. However, if you own an expensive or distinctive property, elevating your insurance coverage may be necessary. High-value home insurance offers enhanced limits, extended coverage options, and additional policy benefits tailored to safeguard your property, providing invaluable peace of mind.

For those seeking guidance on selecting the right homeowners insurance, our comprehensive guide offers insights into finding insurance solutions tailored to your needs.

Still have questions?

Below are common inquiries regarding insurance for high-value residences:

Is home insurance based on the value of the home?

The price of homeowners insurance is determined by several variables, such as the market or replacement cost value of the property, its location, the selected insurance provider, the chosen coverage plan, and the individual’s credit history.

How much does it cost to insure a mansion?

The insurance premium for insuring a mansion is highly contingent on its location and assessed value. For instance, insuring a mansion in Utah generally incurs lower costs compared to insuring a mansion in California. Rather than focusing solely on the size of the property, evaluating its geographical location and financial worth is paramount.

How much is home insurance on a $300,000 home?

Your statement is accurate. Home insurance premiums for a $300,000 home usually fall between $1,000 and $1,500 annually, depending on the insurance provider. As a point of comparison, the average annual premium for $250,000 of dwelling coverage is $1,393.

How much is homeowners insurance on a million-dollar home?

The cost of homeowners insurance for million-dollar homes can vary significantly based on factors such as the insurance provider, chosen plan, and individual credit history. Generally, annual premiums for high-value home insurance with dwelling coverage of $750,000 typically range between $1,800 and $2,700. Coverage for $1 million or more may incur higher costs.

Can you insure your house for more than it’s worth?

Indeed, it is possible to insure your house for more than its current market value. This is because the replacement cost value, representing the expenditure required to rebuild your home following a substantial loss, can surpass its market valuation.

Does every home insurance provider offer high-value insurance?

No, high-value insurance isn’t provided by every home insurance company; rather, it’s typically offered by specialized high-end insurance companies.

What should I consider when choosing a high-end home insurance provider and a high-value home insurance plan?

When selecting a high-end home insurance provider and a high-value home insurance plan, it’s essential to consider various factors:

1. Your home’s value.
2. Your liability exposure.
3. The value of your personal property.
4. Your specific preferences regarding coverage options or additional benefits.
5. The level of customer service you expect.

If you have further inquiries regarding insuring your mobile, manufactured, or modular home, don’t hesitate to reach out to a specialist at Hippo. We’re dedicated to assisting you!


Bankrate employs Quadrant Information Services to analyze the current 2023 rates across ZIP codes and carriers in all 50 states and Washington, D.C. The rates are assessed based on the population density in each geographical region. Quoted rates are derived from profiles of 40-year-old male and female homeowners with a clean claim history, favorable credit standing, and the following coverage limits:

– Coverage A (Dwelling): $750,000
– Coverage B (Other Structures): $75,000
– Coverage C (Personal Property): $375,000
– Coverage D (Loss of Use): $150,000
– Coverage E (Liability): $500,000
– Coverage F (Medical Payments): $1,000

These homeowners maintain a $1,000 deductible along with a separate wind and hail deductible, if applicable.

Please note that these rates are provided as samples and should be utilized solely for comparative purposes. Actual quotes may vary.

Amy Danise

Amy Danise is the managing editor for Sufn.info and Forbes Advisor's insurance section, covering auto, home, renters, life, pet, travel, health, and small business insurance. With over 30 years in the insurance sector, she specializes in simplifying complex insurance topics into actionable information. Amy collaborates with her team to translate insurance jargon into clear language for consumers, helping them understand insurance costs and find top-rated companies. Leveraging her extensive industry contacts, she develops Forbes Advisor's insurance content and analyzes state regulatory filings for insights. Amy's expertise has earned her features in major news outlets like The New York Times and The Wall Street Journal. She holds a Bachelor's degree in American Studies from Wesleyan University.

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