December 11, 2018

High Value Homeowners Insurance

High Value Animation

If you own an old, hard to replace home or a large custom home, you will likely benefit from the broader coverages provided by our companies that specialize in writing High Value Homes.  On the outside, these policies might look just like any other standard Homeowners policy, but on the inside, they are completely different.  They offer many coverages not even available from standard carriers.  They have claims units that have been specifically trained to handle complex claims for not only hard to replace homes, but for expensive Contents as well. 

Here are some of the benefits of these carriers:

  • Guaranteed Dwelling Replacement Cost - The most notable feature of the policy is that unlike almost every other policy, it guarantees to completely rebuild your home with like materials and quality, regardless of the cost.  Most companies have a set limit that they will pay, and many do not even include coverage for increases due to law and ordinances.  It will also allow you to replace your home with the same quality materials and construction techniques. 

  • Fair Market Value - Pays Fair Market Value for Personal Property that cannot be replaced instead of Actual Cash Value (ACV).  Most companies all sell replacement cost policies now, but they don’t tell you that only applies to items that can be replaced.  If you have an antique item that cannot be replaced, they only have to pay you its ACV, which might be $0.00.  These policies would pay you the items Fair Market Value, which is what it would sell for at an antique dealer or auction.

  • Cash Settlement on Contents - This means if you have $60,000 of property damaged in a fire, they give you a check for $60,000.  You can then do whatever you choose with the money.  Most other companies only pay you the ACV, which might be only $35,000.  They will eventually pay you the full replacement cost value of $60,000, but only after you replace each item with an identical item and provide them with a receipt.

  • Cash Settlement on Dwelling – This feature allows you to elect a cash settlement as opposed to rebuilding your home.  For example, your home is destroyed by a fire and will take at least a year to rebuild, which means that you and your family will have to live in a temporary home or hotel for an entire year.  This can be a real inconvenience, especially if you have kids.  You could choose to simply have the company pay you the cost to replace your home or the full policy limit (whichever is less), sell your land, then use the money to buy a new house.  You could buy a house in the same neighborhood or anywhere else you desire.  Most other companies would only pay you the actual cash value or ACV for your house if you do not rebuild it.  This can be as much as 40% less than your policy limit.

  • Agreed Value Plus 50% for Scheduled Items - If you insure a diamond ring for $20,000, that at the time of the loss costs $26,000 to replace,  they would pay the full $26,000.  If the current replacement cost is less than $20,000, they would still pay you the full $20,000.  Standard policies only pay you up to their limit or less, if THEY feel it can be replaced for less.

  • They Let You Shop Where You Shop – In the example above with a $20,000 ring, lets says you bought it at Tiffany’s and you want it replaced from Tiffany’s.  These carriers would all accept the cost from Tiffany’s, while most standard carriers would only pay you based on what THEY feel it should cost to replace, which is often much less.

These companies not only offer better coverage for your home, but they also offer much broader Auto and Umbrella coverages, as well as offer Worker’s Compensation for your domestic employees, like maids, nannies, and nurses.  They can also cover your vacation (including coastal) and rental homes as well.

Does my home qualify?  Typically they require a home with a replacement cost of $750,000 or more. 


Our High Value Home Insurance Companies Include the following:

ACE Private Risk Services
ACE Private Risk Services
AIG Private Client Group
AIG Private Client Group
Fireman's Fund

Contact us today for more information about High Value Homeowners Insurance or fill out our online quote form.

Click here for Frequently Asked Questions

3201 New Mexico Ave NW #300
Washington, DC  20016