Is High-Value Home Insurance Right For You?

Home Insurance Insurance

In Ontario, a high-value home is a home with a rebuild value of more than $1,000,000. Do you have a luxury home? If so, a standard home insurance policy may not cover your building’s expensive build material or your possessions. You will need high-value home insurance to make sure you are completely covered.

Most homeowners who purchase luxury home insurance do so because it offers more protection than a standard one. Even one with added coverages.

Here are some qualities of standard home insurance that you still get with High-Value Home Insurance:

  1. You can tailor your policy to your needs.
  2. Option to bundle your policy with your auto insurance to get a discount.
  3. You may also be eligible for other discounts.

So, what’s the difference between standard home insurance and high-value home insurance?

Luxury home insurance may include these coverages:

Higher policy limits – You get higher policy limits. Consider the value of your jewellery, landscaping, money, art, business property at home, liability, and more.

Additional living expenses – If you cannot live in your home due to a covered loss, your insurer will cover the expenses to live in another home or a hotel. Whichever is comfortable for you.

Cash Settlement – Your insurer will pay you out in cash. You get the option to rebuild at a different location or keep the cash and not even rebuild at all.

Replacement Cost Coverage – Your insurer will replace all your belongings and property at the current selling price of the exact or newer models. Your insurer will cover the damages without deducting depreciation on your home and its contents. 

Extended Replacement Cost – Some insurers such as Chubb offer Extended Replacement Cost with luxury home insurance. If you suffer a covered loss, you’ll be able to rebuild your home to its original state. And if modern building codes require you to upgrade when you suffer a covered loss, your insurer may even cover the upgrade.

High-value home insurance may also include coverages that are considered riders or add-ons to a standard policy. Some of these are water protection, service line, additional living expenses, identity theft and fraud, family protection, and higher limits.

Who can benefit from High-Value Home Insurance?

You may be eligible for high-value home insurance if your home’s replacement cost ranges between $750,000 and $1,500,000. Replacement cost is the amount your insurer has to pay to replace your property, not the amount you can sell your home for. In other words, luxury home insurance is determined based on the home’s rebuild cost, not the real estate value.

Luxury home insurance can cover your house, condo, and even rental property.

How do I purchase High-Value Home Insurance?

Your insurer may require you to get an appraisal and inspection for your luxury home. Our licensed brokers are experts in high-value home insurance in Ontario. Want to request for a quote with no commitment? Contact us anytime and a PrimeService broker would be at your service!

By Katia Barretto