How does high-value home insurance work?


High-value home insurance is a special type of homeowners insurance that targets newly-built, large, expensive and well-protected houses whose replacement value is over $1 million. In fact, insurance providers prefer selling high-value home insurance because they consider high value homes less vulnerable to damages or losses.

Who Can Buy High-Value Home Insurance

To qualify for high-value home insurance, a home owner has to meet certain requirements specified by each insurer. The eligibility requirements may vary slightly from company to company but, essentially, they are as follows:

  • The amount of money needed to rebuild one's home must exceed $1 million.
  • The home needs to meet particular construction requirements set by the respective state insurance department.
  • The house needs to be in compliance with the building code of the area where the property is located. For example, in areas prone to natural disasters such as hurricanes, floods and wind storms, certain mitigation features must be installed.
  • Home owners often have to furnish proof that their home has been built in compliance with the building code in the form of an inspection summary.

Coverage Provided by High-Value Home Insurance

In addition to getting the coverage offered by standard home insurance policies, high-value home insurance owners enjoy certain insurance privileges.

Some companies may offer waiver of deductible if a particular dwelling has suffered losses above a certain dollar limit. Other insurers may even pay for certain loss-mitigation features to be installed, cover the additional amount of money in excess of the policy coverage limit, needed to rebuild a home, and even offer flood coverage otherwise specifically excluded from the majority of home insurance policies.

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