High Value Homeowners Insurance
By David Clausen – Find us on Google Plus
Insurance companies begin the high value home insurance at around $1,000,000 reconstruction and up. As you can imagine many factors go into rating high value home insurance. So let’s take a look at the most important ones that can help you get the best rate.
Besides the obvious ones, such as central station fire/burglar and multi-policy discounts, there are many protection credits that can be applied to luxury homeowner insurance policies that you may not be aware of.
Protection credits are a great way to knock down your premium. If you have a full time live-in caretaker many companies will offer a credit of 2% or more off the total rate. The company’s logic is that someone is there to watch over the home when the owners aren’t around, lowering the chance of a major claim. Each one of the following credits will also give you a 2% discount;
- Low temperature monitoring systems
- Water leak detection systems
- Permanently installed generators
- 24 hour signal continuity, sprinkler system with water flow (installed into home),
- Lightning protection systems
- External perimeter gates
Add these credits up and you can be looking at up to a 15% discount on your policy. The largest protection credit is the perimeter security system credit. It’s about 5% and requires a closed circuit TV be installed. Most high-end homeowners have these installed and if you don’t tell your agent, you won’t get the credit!
Where does the largest credit come from? Your deductible is the answer. By increasing your deductible from, let’s say $2500, to $100,000 you’re looking at a whopping 46% savings! Most companies will go even higher than that with some offering up to a $1,000,000 deductible or more! In that stratosphere you’re looking at a 59% credit on your premium. In the realm of things, if you have a $60,000,000 home, a $1,000,000 deductible isn’t going to hurt all that much. While we are on the topic of deductibles, don’t forget about that hurricane deductible. Most high net worth carriers will allow you to increase those to $250,000 saving yet another 38%.
Are you building a new home? If you are, go with a hip roof vs. a gable roof and you could save another 6%. One of the largest credits, especially in coastal areas, is impact shutters and glass. Impact shutters and glass defend your home against flying debris during large storms or hurricanes. For coastal homeowners you can be looking at a discount of 9% and 12% respectively. This isn’t for the faint of heart though, these windows can be very expensive and are rated to take a hit from a 2×4 at more than 96mph and not break!
Give your agent a ring and ask if you’re missing out on any discounts. Ask if you can lower other structures coverage limits or personal property limits if they are too high for you. Basically, ask for the protection credits you deserve, raise those deductibles to a comfortable level, and watch the savings pour in. If you don’t have time, ask your assistant to get on it!
