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High-value home insurance

Updated Feb 02, 2023
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When you own a high-value home, there may be a need for specialized home insurance coverage to protect what might be one of your most valuable assets. High-value homeowners insurance can offer broader coverages with higher limits, specialized coverage options, dedicated customer service and other policy benefits. Understanding what high-value insurance is, what it covers, the best companies to buy it from and average costs can help you narrow down the correct coverage and company for your needs.

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Insurance Disclosure, LLC is a licensed insurance producer (NPN: 19966249). services are only available in states where it is licensed. may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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What is a high-value home?

How high-value homes are classified depends on where you live. In some areas of the country, a $300,000 home is fairly high-value, but relatively standard in other areas. But no matter where you live, your home must meet specific criteria to buy high-value homeowners insurance. In general, a high-value home usually has a replacement cost value of $750,000 or more. The replacement cost value is the amount of money it would cost to rebuild a home back to its original state.

When the insurance company calculates a home’s replacement cost value, it factors in the entire cost of rebuilding a home. This includes the cost to repair the structure of the home, including the cost of flooring, cabinetry, roofing and built-in appliances. Even a modest-sized home can have a high replacement cost value when you consider all these factors together.

What does high-value home insurance cover?

A luxury homeowners insurance policy and a standard homeowners insurance policy have several key differences, particularly regarding the type of coverage and coverage limits included. Here are some of the things you may receive with a high-value home insurance policy:

Higher coverage limits

High-value homeowners insurance policies typically have broader coverage than traditional home insurance policies. Many luxury home insurance policies cover your home and personal property at their replacement cost value on an open perils basis. This means that any losses not specifically excluded are covered. You might also get higher coverage limits for valuable items or extra perks with your additional living expenses coverage.

Additional coverage options

A high-value home insurance policy might also include additional coverage types that are not typically included in standard home insurance policies. For example, many luxury homeowners insurance policies may automatically include water backup, landscaping, identity theft, and business property coverage. On standard home insurance policies, you likely have to include these coverage options manually for an additional cost.

Policy perks

Some high-value home insurance companies also offer special perks for policyholders. The specific benefits vary based on the insurance provider, but some perks include free home appraisals, a cash settlement option in the event of a total loss, deductible waivers for certain losses and risk consulting to reduce risks in your home.

Dedicated customer service

If you purchase a high-value homeowners insurance policy, you might get access to dedicated customer service. In this case, policyholders are sometimes paired with a concierge or personal representative who can file claims on your behalf, schedule appraisals, find and hire contractors and book a hotel if you need to use your loss of use coverage.

Best companies for high-value home insurance

According to our research, the best companies for high-value homeowners insurance are The Hartford, Farmers, Chubb and PURE Insurance. These companies offer options that high-value homeowners may find appealing.

To determine the companies to feature, we evaluated coverage options, policy features and average premiums obtained from Quadrant Information Services. We also evaluated J.D. Power customer satisfaction scores and AM Best financial strength scores to assess an insurance carrier’s history of being able to meet financial obligations.

Company J.D. Power score Average annual premium for $750,000 dwelling coverage
The Hartford 886/1,000 $3,022
Farmers 884/1,000 $4,253
Chubb 862/1,000 $4,307
PURE Insurance Not rated $3,353
Both The Hartford and Farmers earned an above-average customer satisfaction ranking in the J.D Power Property Claims Satisfaction Study, with The Hartford tying for first and Farmers coming in second. Chubb earned a below average score and PURE Insurance is not rated. However, all four companies have excellent financial strength ratings from AM Best, which is a past indicator of how well the company can handle paying claims. If you are concerned about customer service, talking to policyholders or looking at how other local homeowners rate the company might help you decide if a company is right for you.

Cost of high-value homeowners insurance

In the U.S., the average annual premium for a high-value home insurance policy with $750,000 in dwelling coverage is $3,414, which breaks down to about $285 per month. In comparison, the average annual premium for a standard home insurance policy with $250,000 in dwelling coverage is $1,383, which is roughly $115 per month.

Keep in mind that the cost of homeowners insurance is different for everyone. Premiums are calculated based on many factors, including your state of residence, claims history, policy type, amount of coverage, chosen deductible and applied discounts. In most states, your ZIP code, age of your home and credit history also play a part in determining your premium, although not all states allow the use of these rating factors.

How much high-value homeowners insurance do I need?

Knowing how much home insurance you need can be tricky, but with a bit of research, you should be able to determine a general guideline. To determine how much high-value home insurance you need, you may want to consider:

  • Your home’s value: The amount of high-value home insurance you need should be based on your home’s replacement cost value. For example, if it would cost $1.5 million to fully rebuild your house back to its original condition after a covered loss, you should probably purchase at least $1.5 million in dwelling insurance.
  • Your personal property amount: For personal property insurance, you likely want to have enough coverage to replace all of your personal belongings, including clothing, furniture, appliances and decor. One of the best ways to estimate the value of your belongings is to create a home inventory. But don’t worry; you won’t have to come up with an exact dollar amount for personal property. Most companies automatically include 50%-75% of your dwelling coverage amount for personal property. The purpose of an inventory is to help you determine if you need to increase that amount or schedule any valuable items.
  • Your liability risks: Standard home insurance policies usually come with a minimum of$100,000 in liability coverage. The base limit may be higher for high-value homes, depending on the company. If you have a pool, trampoline, swing set or entertain often, you may want to increase your limit or opt for an umbrella policy.
  • Additional living expenses: This coverage would apply if you were unable to live in your home due to a covered loss. While it is uninhabitable or being repaired, this would go toward your lodging, food and other expenses until you can move back into your home.
  • Your unique circumstances: Every home and every homeowner is unique. High-value home insurance can usually be personalized with endorsements, like identity theft, water backup and service line coverage, to build a policy that fits your needs.

A licensed agent can help you decide if the coverage levels and types you’ve settled on are appropriate for your needs. Independent agents typically partner with multiple carriers and can help you determine your coverage needs and the right carrier for your situation.

Things to consider when purchasing high-value homeowners insurance

When you purchase a high-value home insurance policy, you might want to have these considerations in mind:

  • Your coverage amount: Make sure you are purchasing adequate coverage for your situation, especially if you are a first-time home insurance buyer.
  • Customer service: Consider choosing an insurance company that offers a dedicated client concierge and use their expertise to build a robust policy that can help limit risk and provide adequate coverage for your home and personal items.
  • Replacement cost coverage: Each insurance policy may have a different method of calculating the cost of restoring your home and personal belongings. Two common types are actual cash value, which takes into consideration depreciation, and replacement cost coverage, which does not. It is also common to have extended replacement cost coverage, which would pay out a specific percentage above the policy limit in the event of a total loss.
  • Premium: Price likely shouldn’t be the only factor you think about when insuring a luxury home, but it is a consideration. Luxury home insurance policies are usually more expensive than standard policies because they offer more coverage. To get cheap home insurance, you might want to shop around and compare quotes from several providers to make sure you are getting the lowest rate. Also, look for insurance companies that offer discounts you can take advantage of.

Frequently asked questions


Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000, $750,000
  • Coverage B, Other Structures: $25,000, $75,000
  • Coverage C, Personal Property: $125,000, $375,000
  • Coverage D, Loss of Use: $50,000, $150,000
  • Coverage E, Liability: $300,000, $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Insurance Editor