What is a high value home insurance policy?
Many insurers only write high value policies for homes that are worth at least $750,000 or $1 million. Some insurance companies, however, offer these policies to homeowners whose residence are worth substantially less -- $300,000, in some cases.
High-value home insurance is a type of homeowners policy for luxury homes that have custom or unique features. Like a standard homeowners policy, it covers the dwelling and other structures like pools, fences and sheds.
Called a comprehensive policy, an HO-5 policy offers the highest level of insurance coverage for houses and belongings. It covers your house and belongings under all circ*mstances except those listed as exclusions in the policy. The exclusions for HO-5 policies are the same as those under an HO-3.
| Company | Average annual cost for $350,000 dwelling coverage | Editors' take |
|---|---|---|
| Westfield | $1,344 | Best for customer satisfaction |
| Nationwide | $1,157 | Best for high-value homes |
| State Farm | $1,298 | Best for bundling home and auto |
| Auto-Owners | $1,525 | Best for discounts |
| Best home insurance category | Company winner |
|---|---|
| Best for consumer satisfaction | Amica |
| Best coverage | Andover Companies |
| Best for high-value homes | Chubb |
| Best for using an agent | Country Financial |
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.
This covers your items if they're lost, stolen or damaged outside the home. Many of these high value possessions - jewellery, laptops and watches - are designed to be portable. This increases the risk of something happening to them outside your home. Personal possessions cover helps with this risk."
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
According to our research, Erie and Auto-Owners are the cheapest home insurance companies in the country for most people, including seniors. The national average cost of an Erie home insurance policy is $1,284 per year, while Auto-Owners' average policy is $1,406 per year.
Is $2,500 a good home insurance deductible? As long as you're comfortably able to pay it in the event of a claim and don't mind footing the bill for smaller losses (say, a broken pipe or stolen laptop), $2,500 is a fine deductible to choose.
Which insurance company has the most complaints?
- AAA (15.46)
- Allstate (2.70)
- USAA (2.27)
- Liberty Mutual (2.66)
- Farmers (0.73)
State Farm is the largest home and auto insurance company in North America, capturing 17.79 percent of the home market and 18.31 percent of auto.
| Best car insurance category | Company winner |
|---|---|
| Best insurance company overall | Travelers |
| Best insurance company for affordability | American Family |
| Best insurance company for accident forgiveness | Geico |
| Best insurance company for having few customer complaints | NJM |
Travelers is the most expensive homeowners insurance company for $200,000, $350,000, $500,000 and $750,000 dwelling coverage amounts. Rates vary significantly among companies because they each have their own formulas for pricing.
Raise your deductible
The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.
Term insurance is initially cheaper than other types of policies that offer the same amount of protection. Therefore, it gives you the greatest immediate coverage per dollar.
HO-3. The most common type of homeowners insurance is the HO-3 policy, which covers your home, your personal property, liability, additional living expenses and medical payments.
A recent study from the Insurance Information Institute found 12% of Americans no longer have home insurance, up from 5% in 2019. It's the highest level of uninsured homeowners the industry-funded research group has seen, and follows a dramatic spike in the cost of coverage.
High-Risk Location
It could be that your home is located in a neighborhood that experiences a lot of crime. If so, an insurance company will be wary of the fact that you may incur property damage from vandalism or theft. If you live too far away from a fire station or fire hydrant, that could also disqualify you.
High-value items can encompass a wide range of categories, including fine art, luxury goods, collectibles, antiques, jewelry, precious metals, and high-end technology. Any item with a value greater than what standard insurance covers could be considered high value.
What is considered a high value item?
These items might include vehicles, antiques, artwork, and other expensive valuables. In other circ*mstances, these items might not have much monetary worth but hold sentimental value, instead. It is important to remember that the High-Value Item Sheet for Movers doesn't prove the value of any of these items.
The valuable items you own are likely important to you for their financial worth. Also, they provide either a sentimental connection to loved ones or a contribution to your favorite hobbies. This means that insuring these items ensures your happiness and financial well-being.
When buying homeowners insurance, property owners must decide on their policy limits. In most cases, it makes sense to buy a policy that provides coverage for the full replacement value of the house. That's what it would cost to rebuild.
A suggested “rule of thumb” is that you should have enough liability insurance to cover the total value of your at-risk assets.
How many quotes should I get for homeowners insurance? We recommend getting quotes from at least three home insurance providers. This will give you a broader comparison of coverage options and rates.
