What is High-Value Home Insurance?

Not all home insurance is created equal. Among the array of insurance options for homeowners is one called high-value home insurance. Also known as luxury home insurance, high-value insurance is a bundle of services designed specifically for people with high-value homes.

So, what constitutes a high-value home? And what exactly does high-value insurance offer that typical homeowners insurance doesn’t? Below, we’re breaking down what high-value homeowners insurance is, which services it includes, and who should consider it.

What is high-value homeowners insurance?

High-value homeowners insurance is a type of homeowners insurance that protects costly properties. Think: luxury apartments and condos, mansions, historic homes, architecturally significant homes, and homes with expensive or unique materials or structural features.

To qualify as a high-value home, a home typically has to be worth at least $750,000, though that’s just a baseline; many high-value insurers only insure homes worth $1 million or more. Some insurance companies refer to a home’s worth as its replacement cost value. If a home has a replacement cost value of $1 million, for example, that means it would cost at least that amount to “replace” the home by building it back from the ground up.

High-value home insurance compared to standard homeowner insurance

While standard homeowner insurance generally covers homes up to $2 million, high-value home insurance usually covers homes starting at $1 million up to $100 million. High-value home insurance generally offers higher coverage limits and a wider range of services than standard homeowner insurance. That’s because high-value homes aren’t just more expensive; they also tend to come with more insurance complications, like pools or in-home employees.

There are two key factors that set high-value home insurance apart from the standard type:

Increased coverage limits

The primary appeal of high-value home insurance is the increase in coverage limits. Higher limits mean that not only will you have greater coverage on your property as a whole, but you’ll also have more coverage on pricey individual items within the home, such as artwork, cash, jewelry, silverware, electronics, currency, firearms, and antique furniture.

Additional coverage options

Beyond higher limits for your home and your belongings, high-end home insurance also offers extended coverage for things standard home insurance either doesn't provide or has limited coverage options for. For example, depending on the high-value insurance provider, you may be able to get higher limits for things like:

1. Guaranteed replacement cost coverage: Covers the full cost to repair or rebuild your home.
2. Identity fraud and ransom coverage: Covers any costs associated with having your identity stolen or your home or belongings being held for ransom.
3. Additional living expenses coverage: Covers living expenses (like a hotel or apartment, plus meals) if you need to stay elsewhere if your home is temporarily unlivable.
4. Sewer and pipe backup coverage: Covers the cost of a backup sewer or sump pump.
5. Cash settlement coverage: Gives you money to either rebuild your house in the case of a complete loss, or put toward a new property or venture.
6. Risk assessment/home inspection coverage: Covers the cost of an onsite inspection at your home, where high-end insurance experts will call out any obvious risk factors and tell you which type of coverage you might need.
7. Deductible waiver coverage: Waives your deductible in the event of a significant loss.
8. Loss-prevention coverage: Covers the cost of systems or repairs designed to help prevent future losses, like home security systems or leak detection systems.
9. Employment practices coverage: Covers you against accusations of discrimination or wrongful termination from in-home employees.
10. Landscaping coverage: Covers the cost of landscaping repair.
11. Home contents coverage for all perils: Covers your home’s belongings for all types of perils.
12. Second home coverage: Covers a second home or vacation property as well.

Common exclusions in high-value insurances

While there are fewer home insurance exclusions with high-value insurance, there are some you should be aware of. The most common exclusions with a high-end homeowners insurance plan include:

• Loss or damage due to terrorism or war
• Loss or damage from gradual deterioration, such as rust or wear and tear
• Loss or damage due to flooding

Keep in mind that exclusions vary depending on the insurance provider, so it’s a best practice to ask your prospective provider for a detailed breakdown.

What does high-value home insurance cost?

True to its name, high-value home insurance is more expensive than standard home insurance. The exact cost of a home insurance plan depends on your home’s location, your policy type, the insurance provider you choose, and your personal claims history.

However, the average annual premium for standard home insurance with a $250,000 dwelling coverage is $1,393 per year (or roughly $116 a month). On the other hand, the average annual premium for dwelling coverage above $750,000 ranges from roughly $1,800 to $2,700, depending on the provider.

Who is high-value home insurance for?

High-value home insurance is best for people who own homes worth $750,000 or more, have a lot of assets they want to be protected, and generally want more comprehensive coverage in case of an emergency or loss. High-value insurance is also good for people who have a high net worth, and may be at greater risk of things like ransom or identity fraud.

You should consider high-value home insurance if:

• You own a high-value home.
• You own a high-value home and a second property.
• You have a historic home that’s at greater risk of damage or destruction.
• Your home would be difficult to rebuild in the event of a loss because it has older construction or rare materials.
• You have high-end appliances and materials that would be hard to find and replace in the case of a loss.
• You have expensive collections of art, jewelry, or furniture that you keep at home.
• Your home has unique living features (like an indoor pool) that would be difficult to replicate following a loss.

Other high-end insurance clauses to consider

If you’re interested in high-end insurance, you might also be interested in other types of luxury insurance, including:

• Second home insurance
• Luxury car or boat insurance
• Valuables insurance
• Travel insurance
• Umbrella insurance to cover costs that exceed the limits of your high-value insurance

Insuring a high-value home

As a homeowner, it’s critical to have reliable homeowners insurance, but if you have an expensive or unique home, you might have to take your insurance up a notch. High-value home insurance can give you increased limits, expanded coverage options, and policy perks to protect your property and give you valuable peace of mind.

If you’re curious about what type of homeowners insurance you need, check out our guide to finding home insurance that works for you.

Still have questions?

Here are some frequently asked questions about insurance for high-value homes:

Is home insurance based on the value of the home?

The cost of home insurance is based on a handful of different factors, including a home’s market value or replacement cost value, the home’s location, the home insurance provider, the home insurance plan you choose, and your personal credit history.

How much does it cost to insure a mansion?

The cost to insure a mansion varies greatly depending on where that mansion resides and what it’s worth. Insuring a mansion in Utah, for example, will typically cost less than insuring a mansion in California. Instead of looking at a home’s size, it’s better to consider the home’s location and monetary value.

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

Home insurance on a $300,000 home usually costs between $1,000 a year and $1,500 a year, depending on the provider. To give you an idea, the average annual home insurance premium for $250,000 of dwelling coverage is $1,393 a year.

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

The cost of homeowners insurance for million-dollar homes varies depending on the insurance provider, the plan you choose, and your personal credit history. However, annual premiums for high-value home insurance with dwelling coverage of $750,000 generally run between $1,800 and $2,700 a year. Getting coverage for $1 million may cost more than that.

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

Yes, you can insure your house for more than it’s worth. The market value of your home may be lower than the replacement cost value (what it would cost to rebuild in the event of a major loss).

Does every home insurance provider offer high-value insurance?

No, not every home insurance provider offers high-value insurance; only high-end insurance companies offer high-value home insurance.

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

There are several factors to consider when choosing a high-end home insurance provider and a high-value home insurance plan. Make sure you take into account:

• Your home’s value
• Your liability risks
• Your personal property
• Your preferences for certain types of coverage or perks
• The customer service you want

Still have questions about insuring your mobile, manufactured, or modular home? Contact a Hippo specialist. We’re here to help!