High-Value Home Insurance: Expert Tips

For most people, a home is not only a place to stay but also a collection of their thoughts, emotions, and aspirations.

A high value home is costly; for most people, it is a life's achievement goal. So to safeguard your valuable property against any unfortunate events, it is highly recommended that you have a high value home insurance policy.

Today we will discuss some tips you can follow while purchasing this policy. Click the following link to get more information on home insurance in Canada.


What is high value home insurance?

What is high value home insurance

If you own a property of higher value than a regular house, a standard homeowners insurance policy will not be sufficient. A high value home is determined by the cost of construction and the cost of the belongings like art, jewelry, and antiques.

Consider a house with more than seven bedrooms or a villa that spreads across a vast area and houses valuable and priceless items. If a natural disaster strikes the property or there is vandalism or theft, a standard home Insurance policy will not be sufficient to pay for the coverage.

Hence some insurance companies in Canada offer high value home insurance, where you can get customized solutions and coverage for the property's valuable contents and the overall structure.


Benefits of having a value home insurance

Some of the benefits of high value insurance are:

  • Most insurance companies in Canada treat policyholders with high value home insurance in Canada as VIPs. Thus, they get exclusive benefits like a 24 hours claims hotline.
  • Instant access to customer service and insurance experts
  • Extended coverage for your invaluable possessions in addition to coverage for the structure
  • Access to home emergency coverage which will offer immediate assistance if there is an unexpected household emergency
  • Coverage against identity theft
  • Exclusive access to premium services like legal advisors, furniture stores, surveyors, safe installers, and many more.

Items that high value home insurance will cover

  • Glass breakage and vandalism coverage
  • Comprehensive coverage
  • Replacement coverage
  • Backup of drain and sewer
  • Replacement coverage for outside structures like fences
  • Theft or burglary coverage if the owner is away
  • Credit card coverage included under personal liability
  • Coverage for expensive items like silver cutlery, jewelry, antique paintings, and the cost of smart equipment, gadgets, and computers.

Exclusions of high value home insurance

  • Any electrical damage or mechanical breakdown
  • Loss of gas supply
  • Your insurer will only pay alternate accommodation charges for the first year
  • Home upgrades will not be included
  • Loss of damage due to incidents, like rust, oxidation, rising, dampness, warping, etc., will not be covered
  • Damage due to war, terrorism, or nuclear activities

Expert tips to follow when shopping for high value home insurance policies

Here are some tips that you can follow while comparing high value home insurance quotes:

1. Complete replacement coverage

Complete replacement coverage

One of the biggest benefits of having a high value home insurance policy is the complete coverage option for the property and the items inside. So if your property is completely destroyed, your insurance policy will offer compensation to completely rebuild your property with the same quality of construction materials. Thus, make sure that the policy includes full replacement coverage.

2. Flexibility to reconstruct at a location of your choice

The obvious benefit that a high value home insurance policy must include is the amount of flexibility. If there is a total loss of property, you should be able to decide whether you want to reconstruct the house in the exact location or get cash compensation and rebuild it at a different location of your choice.

3. Ensure that a temporary living arrangement is offered

A high value home insurance policy should provide customized care packages and specialized services to the policyholder which are not available to a standard home insurance policy owner.

So, if your house is inhabitable due to an insured loss, your insurer should pay for temporary living expenses at a location and standard of your choice.

4. Exclusive coverage of outdoor areas

Natural disasters like fire, lighting, and vandalism can seriously harm your property and the landscaping. You must ensure that your high value home insurance provides coverage for your garden, the garden furniture, and the trees, shrubs, and plants in case of a covered loss.

5. Go through the insurance policy

Once you have found an insurance company willing to offer the coverage mentioned above, the next step is to get a quote. However, to choose the right policy, you also need to thoroughly review the conditions and understand the regulations and the type of coverage they offer. If you are unsatisfied with any point, you can negotiate for better terms.

6. Ensure complete instruction

If you own an exquisite property, you will probably have antiques and other expensive items. So you need to ensure that the insurance company has highly trained appraisers who can go through your house and the type of items you own to ensure that you are fully protected in case of an accident or burglary.

7. Check the financial strength of the insurance company

Check the financial strength of the insurance company

This is an important point. Before you select the insurance policy, go through the company's financial strength. If there are past instances of financial issues, your claims might suffer.

Also, you can do a background check on the insurer and learn about their claims history. The claims settlement ratio of an insurance company will give you a clear idea of how the company works and how smooth your claim settlement will be.

8. Fill out the application carefully

Once you have selected your preferred insurance policy, the next step is to fill out an application form. You must answer all the questions accurately and truthfully to get the adequate coverage you need.

The insurance company might ask for purchase bills of expensive items like antiques and jewelry, which you need to submit.


Endnote

Your home is unique, and you have spent a lot of time and money designing it. Therefore the home insurance policy you choose should also be no different. Remember that you own expensive items, and your property is invaluable, so you need to choose the correct high value home insurance to help you quickly bounce back to normal conditions.

You can contact a reputable insurance broker for more information.


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