As luxury homes become increasingly common in Canada, high-value home insurance provides a crucial solution for asset protection. These specialized insurance plans provide peace of mind to affluent homeowners, offering extensive protection against threats like natural disasters, theft, and liabilities.
High-value home insurance protects properties with replacement costs of over $1,000,000. Policies for these luxury, upscale residences cost more than basic home insurance but offer bespoke features like cash payouts and home appraisals.
With the right high-value home insurance policy, your family can safeguard your investments effectively in the face of unforeseen circumstances. With MyChoice, you can match up with the best insurance provider for your specific needs.
What is Considered a High-Value Home?
A high-value home is valued at over $750,000. It may be a standalone property or condominium with custom-built or unique features. Heritage and green homes are also considered high-value.
Alternatively, high-value homes may have a lower property value but contain valuables, artwork, jewelry, and wine collections worth over $25,000.
However, what constitutes a high-value home may vary depending on the insurance company you choose. For example, Aviva Insurance’s Ovation program considers high-value homes to have a replacement cost of at least $1,000,000, whereas Chubb Insurance’s minimum replacement cost is $1,500,000.
So, as you can see from the examples listed above there may be a few different instances that would qualify your home to be considered high-value.
What Features Might a High-Value Home Have?
High-value homes typically have the following features:
- Energy-efficient fixtures like green HVAC systems and solar power
- Modern technology like smart features, electronic door locks, and advanced security systems
- Expensive furnishings like antique pieces or artwork
- State-of-the-art fitness rooms
- Home spas
- Outdoor kitchens and living areas
- Residential elevators
- Entertainment and recreation areas
- Restaurant-quality kitchens
- Walk-in vaults
- Secure panic rooms
- Home movie theatres
Key Features of a High-Value Home Insurance Policy & What It Covers
Like homeowners insurance, high-value home insurance protects your dwelling by covering replacement costs in case you lose your belongings through damage or destruction. These costs cover perils like fires, smoke, theft, vehicle impact, explosions, falling objects, lightning, and wind.
High-value home insurance policies also provide specialized claims services that cover additional fixtures like pool houses, barns, and sheds.
Many high-value policies include coverage for:
- Structural replacements and repairs, allowing homeowners to rebuild the destroyed or damaged property to its original state
- Possessions like high-value collections and business property
- Liabilities like medical payments, libel/defamation, and other personal liabilities
- Additional living expenses while waiting for home restoration like accommodations, basic needs, meals, and more
Below are the typical features of a high-value home insurance coverage policy:
- Cash settlements for personal belongings and property, wherein owners are not obliged to rebuild on the same lot
- Worldwide coverage
- No appraisals required for items worth under $50,000
- Unlimited bylaw and additional expense coverage
- Higher limits for jewelry, antiques, fine wine, and art
- Contents insurance extension to secondary properties
- Discounts for extra security and protection measures
High-value homeowners can also purchase the following add-ons:
While there are few high-value home insurance exclusions, you won’t get coverage for the following:
- Loss due to war or terrorism
- Loss due to gradual deterioration of the home structure
- Loss due to flooding
Is High-Value Home Insurance Different From Standard Home Insurance?
High-value home insurance is different from standard home insurance in that it has higher policy limits for landscaping, personal contents, and business use. It also provides full cash value payouts without depreciation for the property and personal contents.
High-value homes aren’t just more expensive – they come with insurance complications like additional features you wouldn’t normally find in a traditional home. Thus, it provides extended replacement costs for high-value items and access to specialized risk management resources.
How Do I Know If I Need High-Value Home Insurance?
You’ll know you need high-value home insurance if you meet the following standards:
- You own a property with a replacement cost of at least $750,000.
- You have collections worth more than $25,000.
- You own a heritage home.
- You own an eco-friendly/green home.
- Your property boasts unique features.
- Your property has specialized architectural features or parts difficult to replace.
- Your property has specialized landscaping or outdoor features like luxury swimming pools or outdoor areas.
- You own a high-value property and a second home.
Commonly Asked Questions About High-Value Home Insurance
Are there discounts available for high-value home insurance?
Yes, there are discounts available for high-value home insurance applicants. How much these discounts are will ultimately depend on the insurance company you choose. However, homeowners can typically get these discounts by padding their home with security systems or full-time caretakers.
Other ways to save money on high-value home insurance include bundling multiple policies together. By purchasing auto and home insurance, you can get discounts of between 10% and 20%.
You can also save money by paying annual premiums instead of monthly ones, as most insurance companies charge administrative fees per payment.
How much does high-value home insurance cost?
How much high-value home insurance costs depends on your insurance provider. They are more expensive than standard insurance policies, but final rates will depend on your property value, location, and selected coverage. It’s best to compare quotes from the best home insurance companies to determine the exact cost of a high-value policy.
Quoting a high-value home insurance policy may involve a home inspection, during which a broker calculates your insurance-to-value (ITV) number, which determines the cost of replacement. Some insurance companies provide these home inspections for free.
You can get a better idea of how much home insurance costs by understanding the factors that affect these final numbers.
What special coverage options are available in high-value home insurance?
Special coverage options for high-value home insurance include:
– Extended replacement costs for rebuilding and repairs
– Coverage for high-value belongings
– Additional living expenses during property rebuilding
– Risk management services like security assessments, wildfire mitigation measures, and recommendations for safeguarding valuable assets
– Identity theft protection
Why won’t traditional home insurance cover high-value homes?
Traditional home insurance won’t cover high-value homes because their limits are not sufficient. Luxury homes typically have replacement costs and valuable assets far exceeding what traditional home insurance can accommodate.
Some insurance companies also enforce stricter underwriting criteria for high-value properties that traditional policies aren’t designed to match.