Standard home insurance policies meet the needs of most homeowners. Homeowners who have homes worth $750,000 or more, however, sometimes need more protection than standard homeowners policies afford. For these homeowners, a high-value home insurance policy might provide better coverage. Here's a look at some of the coverages that are included in many high-value policies.
Higher Structural, Personal Property and Liability Limits
High-value home insurance policies typically have the same primary coverages as standard policies:
- structural coverage for the policyholder's home
- other structures coverage for secondary structures
- personal property coverage for the policyholder's personal possessions
- liability coverage for protection from potential lawsuits
High-value homeowners policies, however, come with high limits for each of these protections. While standard homeowners policies usually have several limits that policyholders can choose from, there is an upper limit on how much coverage they'll provide. High-value policies, in contrast, can come with a lot more coverage if it's needed.
Coverage for Refrigerated Foods
Many high-value home insurance policies include coverage for refrigerated food. This coverage may reimburse homeowners for food that spoils during a covered incident, such as a power outage caused by a thunderstorm.
Because homeowners who have expensive homes frequently have large kitchens with big refrigerators, this coverage is especially important. Frequently, their refrigerators are full of food that would cost a significant amount to replace.
Additional Living Expenses Coverage
If a home is destroyed in a covered incident, alternative living expenses must be arranged until the home can be rebuilt or restored. High-value home insurance often includes additional living expenses coverage, which is designed to help policyholders pay for alternative accommodations. This coverage may be used to pay for a hotel room or rental home while the policyholder's home is under construction.
Coverage for Sewer Backups
Standard home insurance policies sometimes offer coverage for sewer backups, but it's typically made available as an optional coverage rather than a standard one. In order to get this coverage, homeowners with standard policies usually have to pay a little more on their premiums.
Many homeowners forgo this protection, because they don't want to increase their premiums. Not having protection, however, can leave a homeowner with a major expense if their home's plumbing malfunctions.
Lots of high-value home insurance policies include this protection without increasing premiums. Should a drain or sewer back up and cause water damage, a high-value policy will normally cover the incident under its included sewer backup coverage.