Insuring a High-Value Home the Right Way
There are many kinds of homes in Canada, from condominiums to mansions. Out of the millions of homes available, more than five percent of them are considered high-value homes. No matter what kind of home someone has, they will need to purchase home insurance to keep it safe from loss or damages.
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If a home is designated as a high-value home, it is considered special due to its size, contents, location, features, age, as well as many other factors. Due to this, the owners need to purchase high-value home insurance so that the house will have the adequate protection from a possible loss.
Types of High-Value Home Insurance
When buying high-value home insurance in Canada, a home owner must consider the various features in their home along with their values. It is a good idea to insure your home for replacement value, which means if anything goes wrong, there will be enough insurance coverage to pay for it to be totally redone, not just what it cost originally.
Sometimes this is called extended replacement value because it will cover the entire cost of replacing the home in case it is destroyed by something such as fire or natural disasters. It is the best type of insurance for any home, let alone high-value homes since their costs are much higher and things are harder to replace or to rebuild than with a regular home.
Some types of replacement value for high-value homes will even allow you to rebuild the property at a different location than where it was originally. You may also be able to get the amount back in cash if you do not want to rebuild, when in standard insurance you would only get a cash settlement of the actual value of the home, not the amount to rebuild it.
Another type of coverage necessary for someone with a high-value home is called ‘added endorsements.’ These are added to the main insurance policy in order to cover valuable possessions such as jewelry, electronics, antiques, or other high priced items.
Some types of standard insurance don’t cover these things at all, so if you own them, it is vital to check your insurance policy in order to keep track of your coverage amounts.
In fact, in high-value insurance policies, some things, such as jewelry, may be automatically covered without the need for added endorsements. Some brands of high-value insurance will also cover things that others won’t, like wine cellar contents.
Differences in High-Value Coverage
Special and custom high-value insurance covers more than standard home insurance in order to most effectively protect high-value homes. For example, when it comes to liability coverage, most standard policies are capped at two million dollars, but a high-value policy could provide up to five million dollars in liability coverage. Liability insurance covers the home owner when something unexpected occurs, like damages caused to your neighbor’s property due to your actions or your family’s actions.
The bottom line is that home owners who have a high-value home will need to take extra care when purchasing insurance for their homes, and will need special high-value home insurance in order to get the best possible coverage. So, if you have a high-value home, be sure to buy the proper type of home insurance for your situation.
About the Author: This guest post was written by James Lopez, who has found the best of both words: studying finances and freelance writing – by marrying two of his passions, he’s found a creative, passionate outlet online.
Category: Home Insurance
