PERSONAL INSURANCE
High-Value Home Insurance
Is My Home Considered High-Value?
A common misconception among insurance shoppers is that all home insurance policies are created equal. However, for those that live in a home valued at $750,000 or over, you should purchase a high-value home insurance policy. If you’ve never given much consideration to these policies or have no clue what they are, don’t worry. We got you covered. Keep reading for all you need to know about high value home insurance policies and whether one is right for you.
What is a High Valued Home?
All insurance companies base your price, at least in part, on your home’s replacement value, which is the cost to rebuild your home after a loss. A home that is considered to be high-value has a replacement cost of over $750,000. It is important to note that there is a difference between market value and replacement cost. The market value is what you can sell the home for, given the state of the real estate market and the location of the property. A home’s replacement cost can be vastly different from the market value as it does not take the land into account and factors in such things as debris removal and construction costs.
How Do I Know if My Home is High-Value?
You may not realize what your home’s replacement cost value is until you speak to a licensed insurance agent who can calculate it for you. Insurance companies and agencies use a special replacement cost calculator that inputs your home’s specific information to determine the replacement cost. The factors considered in this calculation are the square footage of your home, wall coverings, flooring, ceilings, and special features such as skylights, atrium windows, or pocket doors. The bigger the home and the more notable features, the higher the replacement cost.
What Is High-Value Home Insurance?
Your standard homeowner’s policy and a high-value home insurance policy can vary by company. Generally, a home that has a high replacement value should be written on what is known as a comprehensive policy. This type of policy is unique because it will cover you for more perils (events) than your standard home policy. Especially when it comes to your personal property. Many companies only offer personal property coverage for certain events, such as fire, theft, lightning, and windstorms, with a standard home policy. Anything that is not explicitly mentioned is not covered. A high-value home policy will cover your home and personal property for everything except what is expressly excluded. Some companies also offer additional benefits with a high-value home policy, such as increased limits for liability coverage and a personal umbrella policy.
Final Thoughts
If you have a home that is considered high-value, you should consult an insurance agent to make sure you have the correct homeowners policy. The Craven Agency has licensed experts on staff to answer any questions you may have and ensure you have the right coverage.
Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.
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