You invested a lot of time, money and effort into your luxury home in Bedford NH. From hand-crafted fixtures to the customized cabinetry, you put tremendous thought into making your home special and a reflection of what you value. Will your homeowners insurance company provide you with the coverage necessary to repair or rebuild your home with the same level of detail?
Within your beautiful residence you have also worked to accumulate items that reflect your personality and style. Whether it is a gourmet kitchen with top-of-the-line appliances, or an antiques collection that you have scoured the best antique stores throughout the world, or perhaps a cherished necklace that has been passed down to you. Are you confident that in the event of a claim that your current homeowners insurance policy will respond as you expect or will you be working with a contracted adjuster who typically deals with more standardized homes?
What is the difference between a standard homeowners insurance policy and a Bedford high-value home insurance policy?
Many insurance companies can offer home insurance coverage upwards of $1 million for the building itself, but just because it can be done does not mean this is the right company for you and your Bedford high value home home. Here are some questions to consider:
- Many insurance companies use a computer program to determine the estimated replacement cost of the average home, but is your home considered average with standard construction?
- Many insurance companies offer jewelry coverage but are limited by the value of each item. Do you own jewelry greater than $10,000?
- Many insurance companies offer liability limits, but is it enough to protect all of your assets?
Here is an in-depth look at some of these issues:
Replacement cost coverage
Whether it's a stained glass window, custom-built cabinetry or geothermal heating, the standard homeowner's insurance company agent may not be asking you the necessary questions to properly calculate your home's true replacement cost. This calculation is critical because if the building coverage is not properly determined (also known as dwelling coverage) this can lead you to be under-insured and having to pay for much of your customization out-of-pocket. This miscalculation can also have a rippling effect as most homeowner policies base the amount of coverage for your personal property and loss-of-use as a percentage of the dwelling coverage. If the dwelling coverage is low, your personal property coverage will also be too little to replace what you have worked so hard to accumulate.
With a Bedford high value home policy, the agency typically works closely with you and the insurance company to figure the true replacement cost of your home. This will often require a personalized inspection done by a professional appraiser sent by the company who understands custom construction costs.
Jewelry and special collection insurance
Every home policy has a coverage limitation for jewelry should it be stolen. With the average home policy this limit could be as little as $1,000 so it is important to work with an insurance professional that can explain these limitations and suggest coverage options for you. A high value home policy may offer higher limits or provide coverage options like blanket coverage which can protect the total value of your jewelry collection and not each piece. It is really going to come down to what matters to you but working with a high value home policy provides options that are not available in the standard homeowners policy.
It is also standard practice for most insurance companies to contract with a jeweler of their choice, not yours. Every insured is entitled to like, kind and quality to the piece scheduled when replacing or repairing it, but that is the extent of the requirement. Should you have a relationship with a particular jeweler, without high value home insurance, you would most likely be limited to deciding who to work with.
High value home policies can also offer coverage for other precious collections such as fine art, antiques, guns, wine or many other personal property items that are either unique or have exceptional value. There are simply more options available to meet your needs.
Are your assets protected with your current Bedford homeowners insurance?
Most people realize that homeowners insurance covers a home as well as its contents, but the other critical coverage is its liability protection. Most homeowners insurance automatically includes a liability limit of either $300,000 or $500,000. As the liability coverage should be enough to cover all of your assets in the event of a covered lawsuit, this limit would not be enough. Your insurance professional should be offering a higher liability limit as well as an excess liability or umbrella policy.
An umbrella or excess liability policy is a separate insurance policy that will supplement personal policies such as auto, home, recreational vehicle and boat insurance for the liability portion. An umbrella or excess liability policy can provide a higher liability limit than that offered by the other policies and should be written to a limit to protect your assets.
Many standard insurance companies and agencies are not pro-active in offering this coverage if you do not directly ask. Some insurance companies may not be able to offer umbrella or excess liability limits in excess of $3 million as it is beyond the underwriting guidelines. When you choose to work with a high value home insurance company and agency, there are more options to meet the asset protection needs of the high value client.
Knowing when to switch to Bedford high value home insurance?
When you purchased your first home you had a home policy to protect it. Over the years your financial portfolio has grown and probably even your home, but if you stayed with the same insurance company who covered your first home, you may have out-grown the mass-marketed policy designed for the average consumer. The very nature of what you now own is not average, so neither should your insurance policy.
This material is for informational purposes only. All statements herein are subject to the provision, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy.