High Net Worth Coverage

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What is high-net-worth home insurance?

It is homeowners coverage written for larger, custom or higher-value homes and the households that own them, usually by carriers that specialize in that market. The difference from a standard policy is less about the name and more about the terms: how the house is valued, how a total loss is settled, how much room the policy leaves for rebuilding to today’s code, and how the policy handles jewelry, art, vehicles and liability in one plan.

Will my policy actually rebuild the house?

That depends on the settlement terms, and the California Department of Insurance spells out the differences. An actual cash value policy will not fully replace a destroyed home. Replacement cost policies come in several types, CDI explains: a few pay to rebuild completely regardless of the coverage limit, others pay the limit plus a set percentage above it, and some have no building code upgrade (ordinance or law) coverage at all. CDI adds that if an insurer or broker gives you a replacement cost estimate in connection with a replacement cost policy, a copy must be provided to you if you agree to buy the coverage. Source: CDI, Residential Insurance: Homeowners and Renters. Custom finishes, hillside foundations and long rebuild timelines are where an underestimated dwelling limit hurts most.

What high-value home programs typically include

• Dwelling at a professionally estimated rebuild cost, often with an inspection at the start.
• Extended replacement cost and code upgrade options above the dwelling limit.
• Cash settlement options if you choose not to rebuild, on some forms.
• Higher contents limits, often on a replacement cost basis.
• Scheduled valuables — jewelry, watches, art, wine and collections on a valuable items floater.
• Additional living expenses sized to the home you actually live in while it is rebuilt.
• Higher liability limits, coordinated with a personal umbrella.

What about earthquake on a high-value home?

Earthquake is not part of a homeowners policy in California. For CEA policies, the California Earthquake Authority says homes with a dwelling limit over $1,000,000 can choose only the 15%, 20% or 25% deductibles. Source: CEA, Homeowners Policy Coverages & Deductibles. Private earthquake policies may offer other structures and limits; see our earthquake insurance page.

How much does high-value home insurance cost?

The premium starts with the rebuild cost estimate, not the market value, so an accurate dwelling figure matters more than anything else. After that come construction and roof type, wildfire exposure at the address, distance to a fire station and hydrant, security and sprinkler systems, the deductible, the liability limit, the valuables you schedule and your claims history. We review the estimate and each of those inputs with you before you compare quotes.

What we need to quote a high-value home

• Address, year built, square footage, construction and roof type, and number of stories.
• Recent renovations, custom finishes, and any outbuildings, guest house, pool or solar.
• Security: monitored alarm, fire sprinklers, gated access, water-leak shutoff.
• Current declarations pages for home, auto, umbrella and any valuables floater.
• A list of valuables above standard limits, with appraisals.
• Other properties: second homes, rentals, vacant land.

Insurance City is an independent brokerage in Stockton. We compare high-value home programs from the carriers we represent and review the dwelling estimate with you line by line. Call (209) 670-1556 or request a quote below.