Welcome to The Luxury Briefing - an editorial spotlight on what's shaping today's high-end real estate and lifestyle trends.
When it comes to protecting your home, insurance is often treated as an afterthought, a checkbox in the closing packet or a last-minute renewal. But for homeowners, particularly those investing in luxury or high-value properties, understanding your insurance coverage isn’t just smart… it’s essential.
Here’s a breakdown of the primary types of home insurance coverage and what discerning homeowners should pay close attention to.
1. Dwelling Coverage
This is the core of your homeowners policy, the part that protects the physical structure of your home. It covers damages from fire, windstorms, hail, and other covered perils. But not all policies are created equal.
For luxury properties, standard limits may fall short. It’s worth verifying that your policy includes extended replacement cost coverage, which adjusts for today’s construction costs and inflation.
2. Other Structures Coverage
This applies to detached features on your property, such as guest houses, pool houses, fencing, or garages. If your home has bespoke features or extensive grounds, these structures may require separate appraisals and tailored endorsements.
3. Personal Property Coverage
This protects the contents inside your home, furniture, clothing, electronics, art, jewelry, and more. Most standard policies assign a percentage of dwelling coverage to personal property, but that may not come close to the actual value in high-end homes.
Tip: Consider a rider or scheduled personal property endorsement to ensure valuable assets like fine art, wine collections, or antiques are fully protected.
4. Loss of Use (Additional Living Expenses)
If your home becomes uninhabitable due to a covered event, this coverage helps with temporary housing and related expenses. For luxury homeowners, it’s important to ensure this coverage reflects your lifestyle, especially if you’d require comparable accommodations during repairs or reconstruction.
5. Liability Protection
Liability coverage protects you if someone is injured on your property or if you're held legally responsible for damage to someone else’s property. For high-net-worth individuals, the standard liability limits are often inadequate.
This is where a personal umbrella policy comes in providing an extra layer of liability protection above and beyond your base coverage.
6. Medical Payments Coverage
This covers minor medical expenses if someone is injured on your property regardless of fault. It’s designed for low-severity claims, but offers peace of mind for unexpected situations.
Final Thought:
Luxury homeownership comes with elevated risk and elevated expectations. A standard policy rarely reflects the true value, complexity, and lifestyle considerations of a high-end property.
Whether you're purchasing a new home or reviewing your current policy, now is the time to have a detailed conversation with a trusted insurance advisor. Coverage should be curated not assumed.
Candice Rich - Your Local Advisor
248.724.6124 | [email protected]
