High Valued Homes
A standard homeowners insurance policy may not offer enough coverage for homes with rebuild costs that are in the millions, which is why some homeowners may need high-value home insurance because they offer higher coverage limits than standard policies do. A high value home means a home with a replacement cost great than $1 million and up.
It is important to remember your dwelling coverage is not based on the market price or fair market value of the home, but on how much it had cost to rebuild your home to its original state. That means your home rebuild coverage, or dwelling coverage amount, should reflect how much it’d cost to reconstruct your home from the ground up in the event it is totally destroyed by a covered peril, like a tornado or house fire.
High-value home policies are more expensive than standard insurance, but they typically include extended or guaranteed rebuild coverage, personal property replacement cost reimbursements, high coverage limits for expensive valuables, and several other perks and benefits that aren’t found in a standard policy and can also specifically address the contents within, such as antiques, art and jewelry. While home insurance companies offer endorsements that can fill in coverage gaps, people with high-value homes could still be left significantly underinsured.
