Luxury Home Insurance: Finding the Right Policy

luxury home insurance

The recent real estate run-up saw higher home values in all segments, but luxury homes are among the biggest gainers. Sales of homes valued at over $1 million increased over 80% from 2020 to 2021, according to the National Association of Realtors

Sales prices are one thing; rebuild values are another. But these two values are often linked, based in part on the cost of materials and labor, as well as the customizations that make a well-appointed house a one-of-kind home.

As home prices rise and luxury homes become a larger part of the market, finding the right insurance policy becomes essential. Standard home insurance policies from national providers may not provide enough coverage. However, a select group of insurers specializes in luxury home insurance, offering high-value home insurance policies personalized to meet the needs of successful households.

Key Takeaways:

  • Eligibility for luxury home insurance typically begins at home rebuild values of $1 million and higher.
  • High-value policies offer more customization options, allowing you to focus your insurance premiums where you need the most protection.
  • Higher liability limits paired with flexible coverage options allow you to build a high-value insurance package tailored to your needs.

What is Luxury Home Insurance?

Also known as high-value home insurance, luxury home insurance is a homeowners insurance policy type designed for homes with a rebuild value of $1 million or more. But luxury home insurance considers more than the rebuild value. A well-designed policy also offers uncompromising coverage for your belongings as well as personalized protection against today’s liability risks.

Luxury home insurance policies offer customizable ways to protect your home itself while also bringing options to protect your unique lifestyle.

How Does Luxury Home Insurance Work?

A high-value home policy parallels the basic coverage types found on a standard home insurance policy but expands coverage limits. As importantly, luxury home insurance policies use more flexible policy language. This structure lets you customize your policy to your needs and focus coverage where you need the most protection. The result is an insurance package that offers better overall coverage, often with a lower cost per dollar of insurance.

Flexible policy language means your premiums work harder to protect your home, assets, and family. Luxury home insurance policies allow options not available with standard policies. As an example, many high-value policies provide cash settlement options. With this option, if you have a complete loss, you can choose a cash settlement rather than rebuild. You can rebuild later, rebuild someplace else, or use your settlement as you see fit.

Rebuild costs can spike following storms or other widespread events. High-value home insurance policies also offer additional coverage options that expand your coverage as needed, extending your coverage limit by a fixed percentage, or even guaranteeing the full cost of the rebuild.

Whether valuables, such as jewelry, art, or collections, or the fine furnishings that make a luxury house a home, your high-value policy provides customizable coverage for all your belongings. You’ll enjoy higher coverage limits for your personal property combined with options to protect your most precious items to their full value. Your coverage protects your belongings at home or when traveling anywhere in the world.

For high-net-worth households, liability ranks among the top concerns. Potential losses for homes and personal property are limited by the cost of repair or replacement. Potential liability losses can reach larger amounts in many cases and can be impossible to predict. High-value home policies address this concern as well, providing liability coverage options personalized to your needs. You’ll find coverage limits of up to $50+ million and ways to tailor your coverage to protect your unique lifestyle.

luxury home insurance policy

Best Luxury Home Insurance Providers

In the high-value home insurance market, a handful of companies rise to the top, offering flexible protection to cover more types of losses combined with higher coverage limits for your home, belongings, and liability risks.


With PURE, you’re more than just a policyholder. You’re a PURE member – as well as an owner. PURE uses a reciprocal model in which the company is owned by policyholders, a structure that leads to fair premiums, better risk management, and a renewal rate approaching 94%.

PURE allows you to design a personalized insurance package that protects your home, jewelry and art, autos, yachts, or watercraft, liability risks, and more.

Cincinnati Insurance

The Cincinnati Insurance Executive Capstone Program delivers exceptional coverage for homes with rebuild values of $1 million or more. Founded in 1950 by four independent agents intensely focused on the customers’ needs, Cincinnati Insurance brings more than seven decades of experience and a selection of insurance options not available with standard policies.

Choose options such as enhanced replacement cost coverage which expands your coverage limit by up to 25% when needed. True rebuild costs can be difficult to predict before a disaster. Cincinnati Insurance provides assurance that you’ll always have enough coverage to rebuild.

Protect your home, yacht or boat, autos and collections, valuables, and personal liability risks for your family.


Although a newer insurance provider founded in 2017, Openly has already earned its place among the best luxury home insurance providers. Openly is a technology-driven company, leveraging tech to bring both efficiency and transparency to its insurance products.

Expect customizable coverage for your luxury home combined with cutting-edge tech that keeps premiums competitive. Design your own policy with options for 15 additional coverages to complement the already exceptional coverage for your home and belongings.


Chubb’s Masterpiece Homeowners coverage anticipates the needs of successful households, offering extras such as extended replacement cost, cash settlements for total losses, and cash settlement options for personal property.

Chubb also offers risk consulting to help ensure you’re fully protected and can plan for potential risks. Masterpiece HomeScan can detect possible risks in walls and ceilings – and it’s included as a complimentary service.

The numbers speak for themselves; 97% of Chubb’s clients who had a covered claim were highly satisfied with the claim experience.

AIG Private Client

Whether you own one luxury home or several, AIG Private Client can protect all your homes as well as belongings, collections, or even rare assets such as yachts or exotic autos. With a client list that includes nearly 40% of the Forbes 400 Richest Americans, you’re in good company as an AIG Private Client policyholder.

AIG Private Client takes an individualized approach to luxury home coverage, considering the distinct needs of each household and offering ways to personalize protection for your unique lifestyle.

Put AIG’s 100+ years of experience to work safeguarding both your home and your way of life.


A NatGen Premier homeowners policy provides a sound foundation to insure your home with included protections such as guaranteed replacement cost that ensures you’ll always have enough coverage if disaster strikes. You’ll also benefit from an available cash-out option, unlimited loss of use coverage, and several other extras.

NatGen protects more than just your home and belongings, however. Combine your home coverage with auto insurance, protection for private collections, or an umbrella insurance policy that extends liability limits and expands coverage to insure against risks like libel and slander.


Although founded in 2017, the leadership team at Vault Insurance are veterans of long-established insurers and bring many decades of combined experience to the high-value home insurance market. Vault’s policies deliver a compelling value that combines all the base coverages you’d expect along with a few extras you might not expect.

You’ll benefit from extras like pet injury coverage, automatic coverage for trusts or LLCs, and loss mitigation measures that pay you to install a loss-prevention device following a covered loss.

Protect your home, autos, collections, and unpredictable liability risks. And if your home is difficult to insure due to unique risks or location, Vault Custom offers a customized solution to protect the family abode — or even more than one.

Compare Rates for Luxury Home Insurance

At Coastal Insurance, our experienced high-value home insurance advisors work with successful households to design a customized coverage solution matched to your needs and priorities – at the best price possible. We’ll help you compare rates from leading high-value insurance providers. Expect world-class service and experienced guidance with your confidentiality assured.

Connect with our concierge team of luxury home insurance advisors to learn more about the best ways to protect your home and lifestyle. Our team of state licensed insurance advisors will help you compare rates from the finest insurance luxury home insurance companies like ChubbPureAIGCincinnatiOpenly and Vault

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