Most home insurers cater to the masses. Many have a reasonably good insurance product — but it’s designed to meet the needs of broad market consumers. If you own a high-end residential home, a standard home insurance policy can leave potentially costly gaps in coverage and overlook key coverage details — and many broad market insurers don’t insure homes above a certain value.
Fortunately, there are some fabulous choices in exclusive home insurance companies, insurers that cater to upscale home coverage and the special insurance considerations of financially successful families.
While perhaps best known for life insurance, AIG, now celebrating 100 years of service, is a diverse insurer with specialized products to meet the needs of specific groups. AIG’s Private Client high-value home insurance policy is a great example of the company’s specialized products and is a perfect fit for many affluent households, a comprehensive homeowners policy designed for fine homes.
Focused products bring the ability to insure challenging properties. AIG’s experience and specialized policies enable the insurer to handle complex insurance needs. Where other insurers may not be able to cover the risk properly, AIG’s comprehensive coverage addresses both the larger insurance risks as well as the potentially costly gaps left by other standard policies.
Below are a few of the outstanding policy features available with AIG Private Client:
- Full replacement cost coverage: If your personal property is damaged in a covered claim, AIG can cover your belongings up to their full replacement cost without deductions for depreciation.
- Cash claims settlement: AIG provides the option of cash settlement instead of repair or replacement in covered claims.
- Additional living expenses: In cases where a covered claim forces you from your home while repairs are made, AIG makes coverage available for additional living expenses, like hotels or dining.
- Extended rebuild coverage: Repair and rebuilding costs can be impacted by changing expenses or by the availability of the specific materials needed to match your home’s exceptional build quality. AIG can provide coverage above your policy’s limit when needed, ensuring that your home is returned to its original splendor.
Your fine home is a masterpiece and Chubb’s Masterpiece policy provides coverage worthy of the name — and worthy of your fine home. Designed specifically for high-value homes and high-net-worth families, the Masterpiece policy provides superior coverage for fine homes and pays extra attention to details others may miss.
Known for exceptional claims service, Chubb prides itself on its swift, yet thorough, response to claims and provides prompt payment after claim settlement.
Standard home insurance policies can leave gaps in coverage that may not be immediately apparent — until you have a claim. The Masterpiece policy addresses these gaps and, in some cases, provides more coverage than your policy limit.
Expect more with Chubb, all included with your Masterpiece policy:
- Extended replacement cost coverage: Determining the exact replacement cost of repairing or rebuilding your home after a loss can be challenging. Availability of materials and newer building codes can add to the expense, leading to cost overruns that exceed your coverage limit. Chubb answers this concern by providing coverage above the limit of your policy when needed.
- Cash settlement option: A total loss is devastating to any household. Following a total loss, Chubb gives you the option of a cash settlement, up to the limits of your policy. Rebuild elsewhere if you choose — or don’t rebuild at all and use the funds as you see fit; the choice is yours.
- Replacement cost coverage: Many home insurance policies split coverage, insuring your home to a strict rebuild value and insuring your belongings based on actual cash value, which means many of your belongings may be underinsured. Chubb answers this coverage disparity by providing coverage for the full cost of replacing your belongings.
- HomeScan: As a unique offering, Chubb’s HomeScan can reveal leaks, missing insulation, and even faulty electrical connections hidden behind walls, helping to prevent a loss before it can damage your home — and it’s included with your policy.
A relative newcomer to the high-value home insurance market, Pure was founded by high-value industry experts and has grown at over 30% per year as an increasing number of affluent households discover the insurer’s unique value proposition. Where many insurers answer to the whims of Wall Street, Pure is member-owned, putting the focus back on your coverage needs and your continuing financial well-being.
Expect more with Pure:
- Cash settlement option: As with some other high-value home insurers, Pure gives you the option to repair, rebuild, or receive a cash settlement after a covered loss. Insurance should provide coverage for your loss, without all the restrictions commonly found with many other insurers.
- Extended jewelry protection: Jewelry coverage is a common concern and it may not always be practical to specifically insure every item of jewelry in your home. Expect coverage for up to $50,000 for jewelry that’s lost, stolen, or misplaced.
- Drain backup coverage: You might think coverage for drain and sewer overflows is covered by your home insurance policy, but that’s not always the case. With Pure, this potentially costly coverage gap is remedied, giving you added security against a common risk to homes.
- Guaranteed replacement cost coverage: Estimating a cost to rebuild is a thorough process, but it’s nearly impossible to estimate costs exactly, particularly as building codes, labor costs, and costs of materials are constantly changing. Pure has you covered, however, even if your coverage limit is exceeded when rebuilding your home.
With nearly 70 years of experience, Cincinnati Insurance has become one of the nation’s leading insurers for high-value homes, earning an A+ Superior rating with A.M. Best, which ranks the company in an elite group in regard to financial strength.
Cincinnati protects the assets of high-net-worth households with its premium home insurance product, the Executive Capstone Policy, which addresses the complex needs of clients with homes starting at $1,000,000. Cincinnati’s Executive Classic program, a step-level policy, also provides coverage for homes with values beginning at $500,000.
Expect a generous offering of policy options that promise more comprehensive coverage for your fine home and your valuable belongings, as well as many extras not commonly found with other insurers.
- Preferred primary flood: Cincinnati insurance offers a flood insurance solution that provides coverage up to the coverage limit of your home, an amount often vastly larger than the lesser coverage provided by a National Flood Insurance Program (NFIP) policy. With Cincinnati, there’s no need to accept a partial coverage solution for flood risks.
- Large loss deductible: If you have a home insurance claim with some other insurers, you may learn the hard way that multiple deductibles can apply, significantly reducing your coverage and shifting much of the coverage burden back to the homeowner. Cincinnati insurance addresses this coverage gap by combining deductibles if the damage results from the same loss occurrence.
- Service lines coverage: Many home insurance policies stop coverage at the walls of your home for utility lines, water supply lines, gas lines, and communications lines. The cost to repair many of these service lines can be staggering. Cincinnati’s Executive Capstone program allows you to add coverage for service lines necessary to make your home livable and productive.
As you would expect, claim service for both the Executive Capstone program and the Executive Classic program is exemplary, providing white-glove service from an initial loss to claim settlement. Of course, if a covered claim forces you to leave your home temporarily while your home is being repaired or rebuilt to its original beauty, Cincinnati Insurance helps cover the cost of additional living expenses as well.
The Premier Client Homeowners program from NatGen Premier provides coverage for homes up to $10 million dollars in value, as well as coverage for your valuables and household belongings. Since 1920, National General has been protecting the assets of American households and offering customizable specialty insurance products, like its highly regarded Premier Client Homeowners program.
One size doesn’t fit all with NatGen Premier; expect sensible coverage solutions as built-in policy features, with optional features that make your home insurance policy as distinctive as your fine home itself.
- Guaranteed replacement cost: Cost overruns when rebuilding after a covered loss can create unexpected financial exposure. NatGen Premier can provide coverage to rebuild your home to its original pristine beauty — even if the cost of rebuilding exceeds your policy’s coverage limits.
- Contents replacement cost: Most homeowners insurance policies depreciate the insured value for much of your home’s contents. This structure can create a costly gap between your claim settlement amount and the amount it will cost to repair or replace your belongings. NatGen understands the financial risk to affluent homeowners and covers the cost to fully repair or replace your home’s contents without adjusting for depreciation.
- Ordinance and law coverage: While Ordinance and law risks are non-covered exclusions with many other home insurers, NatGen Premier offers built-in coverage for the additional costs associated with rebuilding when local ordinances or new building codes add to the cost of rebuilding your home after a covered claim.
Optionally, NatGen Premier also provides coverage for service lines to your home, like underground pipes and electrical lines, as well as equipment breakdown coverage, which provides coverage for your entire home system, including heating and cooling systems, water and power systems, and even appliances and electronics.
Your fine home is more than just the materials used to build it; it’s an expression of who you are as an individual or as a family. A standard home insurance policy — even a policy with a higher coverage limit — isn’t designed to fully cover the unique financial risks associated with high-value homes. These five insurers have proven their commitment to properly insuring fine homes and high-net-worth households.
It’s time for a more comprehensive approach to protecting your home and your assets. Just reach out to our experienced agents with any questions or to get started with your home insurance coverage quote.
Top 5 List of Best Insurance Companies for protecting for High-End, Luxury Properties