Your home provides more than shelter. It is your sanctuary from the outside world, and it is also likely to be your biggest financial asset. Purchasing insurance is the most effective way to protect your property and its contents against the unexpected such as a fire or storm damage. While standard home insurance would be sufficient for most homes, a properly set up High Value Home policy will provide the appropriate protection to reinstate damaged buildings as they were and replace your possessions on an ‘as new’ basis. In this blog, we will discuss the benefits of High Value Home Insurance and the factors that you should keep in mind when purchasing your insurance.
Why Can’t I Use a Standard Home Insurance?
Standard home policies often have a limit on the amount that will be paid to rebuild your home, which may not be sufficient for large homes and is not usually suitable for homes with 6 or more bedrooms.
A High Value Home policy will require a sum insured which needs to be sufficient to rebuild the property as it is, reflecting the quality of the fixtures and fittings typical for homes of this type. With qualified evidence to support the sum insured, such as a rebuild cost survey, most High Value Home insurers will give a rebuild cost guarantee which ensures you will not be penalised if the sums insured proves to be too low.
Some insurers provide a rebuild cost valuation free of charge, but if necessary, it can be obtained at modest cost.
Standard home policies typically have inflexible limits for valuable items such as jewellery, watches, antiques, fine art and collectables.
In addition, High Value Home policies include a range of additional covers that reflect the needs of the owners of larger homes, for example: for the possessions of guests, dependent relatives in care or residential homes, and student’s whilst at college or university.
If due to insured damage at the home it is uninhabitable, insurers will pay for alternative accommodation whilst the home is being repaired. This needs to be a similar size property to the damaged home and provide for accommodation for pets and horses. The limits in a standard policy and the scope of cover are not adequate for most high value homes.
What Does High Net Worth Home Insurance Cover?
A High Value Home policy provides All Risks cover, rather than named perils, for both buildings and contents. On this basis, a claim is only not covered if insurers can show that an excluded event has occurred. This is a wider and easier cover to understand than named perils, where it is for the Insured to show that an insured peril has covered the loss or damage.
Contents are covered worldwide without any time limit whereas a standard policy typically only provides for the temporary removal of the contents for a limited time.
Depending on the items that require coverage, High Value Home policies can be customised to create a bespoke cover for your valuables.
What Other Considerations Should I Make When Purchasing High Net Worth Insurance?
To ensure that your high value home and contents are adequately covered, there are some considerations that you should keep in mind and discuss with your broker, including:
- Accurate valuations – It’s essential to give your insurance broker an accurate valuation for your high value contents. In the event of a claim, you will have enough coverage to repair or replace lost or damaged items for their correct value.
- Up to Date Valuations – Valuations can change over time for different reasons. Make sure to have your items valued regularly to help give a true idea of their worth.
- Declare all your valuable items to your insurer – failure to declare any items could result in a policy being voided.
If you need help finding the right High Value Home Insurance, Cascade Insurance can help. Our trusted insurance broker will take the time to work with you and offer your advice. We offer a bespoke service to help find the right cover that’s tailored to your needs at the right price. Our priority is helping you. Pick up the phone and contact us: 01233 512548.