Advantages of High-Value Homeowners Insurance
Purchasing home insurance can be a complex task, but if you own a high-end home, the stakes can be even higher. When looking for homeowners insurance in New Mexico, there are several benefits to choosing a high-value policy over traditional options.
Higher Coverage for Replacements
Standard homeowners insurance covers the appraised value of your home, not the replacement cost. If you live in a home with custom finishes that are hard to replace, rebuilding your home may cost much more than the appraised value. Likewise, collections that are expensive to replace may not be sufficiently covered by a standard policy, which usually sets a maximum coverage limit of half to three-quarters of the home value for possessions.
Additional Coverage and Services
Most homeowners insurance policies cover your home, possessions, and some liability. High-value coverage can offer higher liability limits for household employees, personal protection, flood insurance, and even identity theft coverage. The greater risks associated with high net worth makes these valuable additions.
Traditionally, homeowners who need expanded coverage in certain areas purchase riders. These can cover specific valuables, floods, or liability risks. Someone who needs several of these would see the cost quickly add up, potentially costing more than a high-value policy.
The underlying hope of homeowners insurance is that you should never need to use it. However, if you have a luxury home, opting for a high-value policy may provide the additional coverage you need to fully recover if you have to.