High Value Home Insurance

Homes with a higher market value are generally in a more desirable geographic location and coincidentally are homes with a greater reconstruction value. Insurance premium is tied to the reconstruction value of a home; in the event of a loss, high value home insurance will repair or reconstruct the damaged property.

High value homeowners have carefully selected to live in homes that are usually well customized with luxury kitchens, high vaulted ceilings, crafted molding and upgraded fitted appliances. Floors are usually constructed of expensive marble and counters are often constructed of granite. A high value home cannot be compared to an average home and should be insured by a luxury home insurance policy; a policy that covers the enhanced desires of the high value homeowner.

Insurance for high value homes should be customized to tailor the needs of the homeowner; the customization of the policy will reflect the customized construction of the home and the required insurance for the personal property the homeowner possesses.

Items that are generally expected in a high value home insurance policy are as follows:

• Extended replacement cost of the dwelling up to 200% of the limit listed on the policy
• Building code upgrade up to the full limit of the policy
• Increased limits of jewelry, furs and silverware
• Water backup coverage up to the full limit of the policy
• Inclusion of Personal Umbrella Coverage for qualified homeowners
• Identity theft coverage
• Personal computer coverage including recovery of data

The above are simply examples of coverage that in most cases may not be available on a regular home insurance policy.

The select few insurance underwriters providing this level of insurance offer a complimentary appraisal service paid for by the insurance company; the companies offer the homeowner a free detailed copy of the appraisal with color photos for safekeeping. This is truly an excellent way to assure that the homeowner has adequately insured the investment. The service also offers the insurance company a method of properly underwriting the risk and provides sophisticated loss control techniques.

Although it may not always be the most economic option, it is advisable to place one's automobile insurance with the same carrier thus securing a multi policy discount and in most cases, qualifying to add a personal umbrella endorsement thereby offering you a superior claims experience handled by one company in the unfortunate event of a loss.

If a homeowner should decide to carry the automobile insurance separately, it is a better idea to attempt to purchase the personal umbrella policy from the same carrier that handles the auto insurance.

It is imperative that a homeowner of a luxury home adequately insures the home with a high value home insurance policy thereby providing the financial security and peace of mind expected by most homeowners.

Inadequate Insurance? - You're not alone

It is estimated that at least 65% of higher than average worth properties in Britain are under insured. This is not unsurprising, when compared to the statistics published by The Telegraph in 2011. These revealed at one in four UK households were dramatically underestimating the value of their home and its contents and that one fifth of the population had no insurance whatsoever.

Understanding 'Condition of Average'

This is a standard clause used by many mainstream insurers which only really comes into its own in the event of an insurance claim, when it comes to light that the property and contents have been underinsured. What it means is that you may only receive a percentage value of any claim you make. For example, if you have contents cover for £30,000 when in fact your possessions are worth in excess of £60,000, under the terms of Condition of Average your insurer may only pay out half of the sum you have claimed for. For example, if you are claiming for a piece of jewellery worth £800 and Conditions of Average applies, your claim may only result in a £400 pay out.

Because of this, saving a few pounds on your premium can pale into insignificance next to the thousands that can be lost due to under insurance in the event of a claim.

Why it's so important to get the correct level of cover

For the majority of UK home owners a standard home and contents policy is more than sufficient. Available at very competitive rates, given the difference to the premiums compared to the consequences of underinsurance, there is very little need to underestimate the level of cover required. However for higher value homes, the cost of inadequate insurance can be substantial, especially in the event of a rebuild. This short falling is compounded by the fact that many high value homes also contain higher than average value contents, for example art, antiques, collectors pieces, fine wines and expensive jewellery.

High Worth Home Insurance In The UK

Making high value insurance simple

There has always been a selection of reputable mainstream insurers in the UK, offering competitive prices on high value property premiums and comprehensive cover on higher than average value contents. Using one of these high value insurance packages has long been and remains, one of the best ways to be sure that your property and its contents have sufficient cover and also of insuring any specifically valuable pieces, for example expensive watches, wedding and engagement rings, heirlooms, etc. without having to take out costly single item policies.

However, in the past, many people have been put off by the lengthy conservations with insurance brokers and considerable paper trails it requires to get the correct levels of higher cover in place. This is augmented by the need to assess and list each item of value included on the policy. Only recently has it become possible to buy high worth home insurance online or over the phone, with no more difficulty than purchasing a standard policy. Companies such as high value insurance brokers provide cover that can easily be bought online, which includes rebuild costs up to the value of 1.5million and contents cover up to £250,000 anywhere in the world.

Highworth Insurance specialise in high value home insurance and other mid net worth insurance services. They provide a UK wide service from their head offices, based in Poole, Dorset.