It took years of hard work and prudent saving to build the financial muscle required to acquire the luxury home of your dreams. Now that you’re a proud luxury homeowner, you’ll want to make sure that you’re not blindsided by anything untoward that could happen to your home – from basic theft to force majeure events.
A high-value home like yours will require extra protection, and a standard insurance policy may not be enough to cover everything. On that note, you’ll want to consider getting additional insurance for your luxury home. Below, we break down the benefits of getting high-value home insurance.
MORE COMPREHENSIVE PACKAGE
A standard insurance policy may cover damages due to lightning or fire. To an extent, it may also cover the structure itself and some of your personal belongings. However, it does not give full coverage, especially for certain amenities, possessions, or situations like natural and manmade disasters.
Under a high-value insurance policy, you get the total protection package through the dwelling coverage and contents coverage.
Dwelling coverage
There are certain limits to what a standard insurance policy covers. But with a high-value home insurance policy, your insurer will pay the full value for any damage to your house caused by any circumstance. If the cost of house repairs goes beyond what was stipulated in your policy, your insurer can provide reimbursement, thanks to the extended replacement feature of this comprehensive policy. Depending on the terms, you may even have a cash-out option if you want to rebuild your home elsewhere. This is particularly helpful if you’re the owner of a luxury home in Boston, MA, which may sometimes experience hurricanes or flooding.
Contents coverage
Your personal belongings in your home also matter, especially since many of these are prized possessions like expensive jewelry, valuable antiques, or an authentic Dali painting. You can rest assured that under your high-value home insurance policy, these are well-protected, as well. You get:
- Up to $150,000 coverage for all your jewelry
- $25,000 if a valuable is broken
- Insurance for all risks (that is, for anything that’s not outrightly excluded from the list, like floods or earthquakes)
- Replacement cost for damaged items. If a damaged item is part of a pair or set, the whole pair/set is replaced.
BETTER LIABILITY COVERAGE
Naturally, the more assets a person has, the more one can lose, especially in a lawsuit. Getting insurance with higher liability coverage may include payments for legal settlements and even cover injury against your person such as slander, libel, or defamation. Here are other interesting circumstances where your liability coverage can be particularly useful:
- Payment for replacing or removing trees and shrubs
- Higher medical payment limits
- Payment for sewer backup
- Payment for falling prey to scams involving credit cards, forgery, and counterfeit bills
- Flood insurance
- Insurance for second or vacation properties
- Deductible waiver for immense financial losses
- Risk management
- Insurer pays for home appraisal
Moreover, in the event that someone tries to extort from or kidnap you, your insurer could put up ransom money of up to $100,000 plus reward money of up to $25,000.
Protecting your hard-earned investment is one of the basic requirements of owning a luxury home. If you want to learn more about caring for luxury homes in Boston, MA, and finding your own to call home, let me be of assistance. I am Seydyss Barreto – Boston’s top Realtor – and I’ll be your most able guide as you navigate the luxury home-buying process in ol’ Beantown. Get in touch with me at 978.590.8918 or send me an email. You could also check out my blog for more tips and guides.