High-Value Home Insurance and Best Companies Offering It
For homes worth more than $750,000, insurers including Chubb and Westfield offer the best home insurance.
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High-value home insurance is coverage for residential property with above-average value. Most standard home insurance policies have dwelling coverage limits between $100,000 and $500,000. But high-value home insurance can provide dwelling coverage of $750,000 or more.
The higher coverage limits mean high-value home insurance typically costs more than a standard homeowners insurance policy. But if your home’s rebuilding cost is high, or you have valuable possessions like expensive jewelry or collectibles, high-value home insurance provides greater financial protection than a standard policy can.
Here’s what you need to know about shopping for high-value home insurance.
What is high-value home insurance?
High-value home insurance is a homeowners insurance policy that offers higher coverage limits and more coverages than a standard HO-3 policy.1 Also called HO-5 policies or comprehensive forms, these policies typically cover homes that have expensive rebuilding costs, custom or unique features, and contain high-value possessions.
Generally, insurers consider homes that require more than $500,000 in dwelling coverage to be “high value.” But minimum dwelling coverage limits can vary among insurance companies, with some setting minimums of $750,000, $1 million, $1.5 million, or more for high-value coverage.
Besides higher dwelling coverage limits, high-value homeowners policies differ from standard home insurance in several ways:
Personal liability limits may be higher to protect the assets of high-net-worth individuals.
Policies may include perks like identity theft coverage.
Policies cover luxury possessions like art, antiques, jewelry, and more.
Coverages that are optional in standard policies, like guaranteed replacement cost or service line coverage, may be included in a high-value policy.
A high-value policy may waive your deductible if you have a large loss.
Policyholders may have the option to take a cash payout in case of a total loss.
Best companies for high-value home insurance
Not every insurer offers high-value home insurance. And among those that do, costs can vary widely based on a number of rating factors. At $2,104, Westfield has the lowest annual cost for a policy with $1 million in dwelling coverage and a $10,000 deductible. Acuity has the highest annual cost, at $16,467.
Here’s a look at the best insurance companies for high-value home insurance.
Chubb: Best overall for high-value home insurance
AIG: Best for multiple policies
Westfield: Best for lowest rates
National General: Best for peace of mind
To choose the best high-value home insurance companies, Insurify considered the average annual rates of 40 top insurers, quoting for a home with $1 million in dwelling coverage and a $10,000 deductible. We also considered each insurer’s availability, perks and add-ons included in its high-value product, industry ratings, and user reviews for customer service and claims processing.
Insurify’s team of data scientists analyzes millions of home insurance quotes and weighs publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
What high-value home insurance covers
High-value home insurance isn’t a comprehensive policy. Despite having extended coverage levels, it still has limitations. Most high-value insurance will cover many of the same categories that a standard policy covers, but with higher limits, including:
What high-value home insurance doesn’t cover
High-value home insurance generally excludes the same type of events that standard HO-3 policies won’t cover. These are some typical exclusions for HO-5 policies:1
Normal wear and tear
Nuclear hazards
War damage
Neglect
Mechanical breakdowns
Water flooding damage
Insect or rodent damage
Pet damage
Mold, rot, and fungus
Foundation settling
High-value home insurance policies often have similar exclusions to standard policies. For example, earthquakes and floods aren’t covered losses regardless of whether you live in New York or Nebraska. You’ll need separate policies to cover damage from floods or earthquakes.
You should talk with your insurance agent to identify other potential gaps in your coverage and for a list of specific exclusions. Your insurance company may have endorsements or other policy additions that can cover these gaps.
High-value homeowners insurance vs. standard homeowners insurance policies
Standard homeowners insurance policies, high-value homeowners insurance policies, and standard homeowners insurance policies that include additional endorsements are all different. Dwelling coverage and liability limits, additional coverages, and costs are the main differences.
Luxury home insurance for high-net-worth households has a higher coverage level that typically includes extended replacement cost value. Standard policies may reimburse you for the actual cash value of your home and possessions, or at replacement cost value. When you file a claim, both policy types include deductibles, but high-value home insurance policies may waive your deductible in certain circumstances.
The following table compares a high-value home insurance policy with $1 million in dwelling coverage to a standard policy with $500,000 in dwelling coverage.
Added coverages and perks of high-value homeowners insurance
High-value homeowners insurance policies offer more than higher coverage limits and replacement cost coverage. Some insurance companies also provide added coverages and perks, including:
Broad coverage for sewer and drain backups that cause flood damage
Waivers for deductibles of certain minimums and maximums
Endorsements for lost, stolen, or damaged pieces of artwork and jewelry
Flood and earthquake coverage — two perils rarely covered under any standard policy
Landscaping repair and replacement costs after covered losses for named perils
Appliance breakdown replacement endorsements
Loss settlement for additional structural damage to walkways, pools, and retaining walls
Kidnapping, ransom, and extortion expense coverage
Cost of high-value home insurance
Factors like policy type, deductible, and your state affect the cost of high-value home insurance. Rates for $1 million in dwelling coverage with a $10,000 deductible can range from $2,104 to $16,467, according to Insurify’s data.
Compared to standard home insurance policies of $300,000 dwelling coverage with a $10,000 deductible, high-value homeowners insurance can be two or three times higher, especially for dwelling coverage limits exceeding $1 million.
How to save on high-value home insurance
High-value homes have unique needs, but protecting expensive personal property can increase your insurance costs significantly. Save on high-value home insurance with these tips for reducing your premiums:
Ask your insurance agent if you qualify for discounts for belonging to a professional association or having an adult (like a retiree or caretaker) primarily at home throughout the day.
Consider bundling your homeowners insurance policy with another insurance product, like a car insurance policy.
By increasing your deductibles, you may be able to lower your premiums. Though, this means you’ll have to pay higher out-of-pocket costs in case of a car accident.
Improve your home security by installing smoke detectors, sprinkler systems, and burglar alarms to mitigate risks.
Make fortification improvements, like installing storm shutters or reinforcing your roof, especially if your home is at risk of covered perils.
Shop around and compare rates annually to ensure you’re getting the best rate available.
Maintain a good credit record and continue to monitor your credit report for any errors or inaccuracies.
Remember, your possessions generally lose value over time. Recalculate the value of the high-value items covered under your policy to determine if a coverage decrease is necessary.
High-value home insurance FAQs
Since high-value homeowners policies tend to be highly customized, it’s important to understand how HO-5 policies work. Here’s some additional information to help you decide if you need high-value home insurance.
What’s the 80% rule in homeowners insurance?
The 80% rule, also called the 80/20 rule, is a standard in the insurance industry that encourages homeowners to insure their homes for at least 80% of replacement cost — not market value. Without this level of insurance coverage, an insurance company may not fully cover a claim.3
Which company is best for high-value home insurance?
No single company is best for high-value home insurance. You should choose an insurance company that best fits your needs. For example, if affordability is your chief concern, you might consider Westfield for low rates. If you’re looking for a high level of customization, AIG might be a better choice.
Do all insurers offer high-value home insurance?
No. Many insurance companies don’t offer high-value home insurance. The most common types of homeowners policies offered are HO-2 and HO-3 policies. Some insurers don’t offer comprehensive HO-5 policy forms because fewer homes qualify for this level of coverage. HO-5 policies may also differ between insurers.
What’s the most extensive home insurance policy?
Home insurance policies range in coverage levels, and an HO-5 is the most extensive home insurance policy available. An HO-5 provides more coverage for the dwelling and its belongings than a standard HO-3 policy, offering replacement cost value as opposed to actual cash value.
Is high-value home insurance worth it?
Even if your lender doesn’t require high-value home insurance, it may be worth the investment. This comprehensive policy covers personal belongings, such as expensive jewelry or artwork, that a standard policy doesn’t cover. And a high-value policy can cover the cost of rebuilding your expensive home in case of a total loss.
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