Almost all insurance policies are designed with the average-priced home in mind. Generally speaking, insurance companies offer standard policies that suit the needs of nearly all homeowners. But it reaches a point when the standard homeowner’s insurance policy may not be sufficient enough to rebuild your home or replace your valuable furnishings.
Using high value home insurance to safeguard your investment on Long Island
The majority of luxury and custom-made homes around the New York City area are worth a lot of money. Undoubtedly, you have invested a lot when buying or upgrading your dream home and naturally you would want it to be covered properly. For this reason, maybe it’s time to reexamine how much it would cost to rebuild your home and replace the assets and valuables inside your house.
High value home insurance policies are not for everyone
If your home is valued at $1,000,000 (one million) and above, you should think about taking out a higher insurance policy. Generally speaking, homes in this price category tend to have more personal possessions, are more costly to rebuild and can have many custom features such as electronic home control units, basketball courts and difficult to replace landscaping. High value insurance companies specialize in homes that have these custom features.
You might think about getting a high value policy if you have occupied the house for many years and you have made significant improvements. For instance, if you have added a customized outdoor kitchen, guest room, gymnasium or even a home theater, you will want to ensure that you are carrying sufficient coverage limits in case you have to rebuild in future.
Apart from the custom designs and the actual structure of your home, you should carefully think about your personal possessions. As your personal wealth increases, your possessions and their value tend to increase as well. There’s a chance you will have expensive jewelry, antique fittings, fine arts, paintings, original artifacts or other rare objects that may be exceedingly expensive or difficult to replace.
Distinguishing between High Value Home Insurance and Standard Insurance
Commonly, computer programs are used to estimate the insurance quotes on less expensive homes and establish their replacement values. However, this method is not preferred for customized homes.
Elegant custom-made homes are usually more expensive to rebuild and require higher levels of insurance coverage.
The importance of property appraisal
If you select an insurance company that focuses on high market properties (which is a wise idea) they must designate an appraiser to come over and inspect your entire home before buying a high value home insurance policy. In the majority of cases, the appraisers are experts who are conversant with the procedures of appraising high end homes.
Once the appraiser arrives in your home, it is highly recommended that you work closely together with him or her and offer information relating to the costs and ages of the different items and features in your home. You can provide vital knowledge about antiques, original paintings, collectibles and sports collections. The appraiser might also be interested in looking at jewelry appraisals, letters of authentication and purchase receipts.
In the course of the inspection, the appraiser will make a note of every part of the home that has custom features such as chandeliers, floor heating systems, a handmade bar and exotic porcelain tiles that add uniqueness to your home and makes it costly to repair.
Safeguard your beautiful home
If you have upgraded your current home significantly or designed a customized dream home on Long Island, the time might be right for you reevaluate the substantial investments that you have put into your home. This could be the best time to get a quote on a high value home insurance package.
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