High-Value Home Coverage & Risk Evaluation

Deductible
Is your homeowners deductible more than $1,000?
- Yes
- No
- Unsure
Deductible - Yes
Increasing the deductible on a $1,000,000 home from $500 to $2,500 could save $900 per year. Increasing the deductible on a $3,000,000 home from $5,000 to $10,000 could save $1,800 per year. A higher deductible on a high value home policy makes a lot of sense both practically and financially.
Deductible - No
Did you know that some insurance companies offer deductible options as high as $100,000? Some offer even higher deductibles when the situation warrants it.
Personal Property Contents Coverage*
Is the personal property / contents coverage limit on your homeowners policy more than you need?
- Yes
- No
- Unsure
Personal Property Contents Coverage - Yes
Most insurers determine your personal property/contents limit by multiplying your dwelling's replacement cost by 70% resulting in a coverage limit that is often too high and not based on need. There are a handful of insurers that enable you to customize this coverage to your specific needs and offer a reduction in premium if you reduce this coverage.
Personal Property Contents Coverage - No
Did you know that your homeowners policy limits the amount of coverage available for jewelry that is lost or stolen to a very small amount, usually around $1,500? There is an insurance company that provides $50,000 of coverage for jewelry that is lost or stolen as part of their homeowners policy.
Structures*
Do you have any other structures on your property? (ex: pool, shed, fence, guest house, detached garage, etc.)
- Yes
- No
Structures - Yes
All homeowners policies include Other Structures coverage. This coverage limit is set by multiplying your home's replacement cost by 10% to 20%, which may provide more or less coverage than you need. There are a handful of insurers who offer the option to reduce this coverage in exchange for a premium reduction. Most insurance companies have the ability to increase this limit in exchange for additional premium. The point is that other structures should be given ample attention in the insurance review process as well.
Structures - No
All homeowners policies include Other Structures coverage. This coverage limit is set by multiplying your home's replacement cost by 10% to 20%, which may provide more coverage than you need. There are a handful of insurers who offer the option to reduce this coverage in exchange for a premium reduction.
Home Build Date*
Was your home built prior to 2012?
- Yes
- No
Home Build Date - Yes
Most insurers will add credits to your policy if your home's plumbing, heating, and electrical systems have been updated within the last 10 years. A new roof will also have a positive impact on your premium.
Home Build Date - No
As the electrical, plumbing, heating, and roof of your home age, they become more likely to fail and cause a loss. Updating these aspects of your home could prevent a loss and lower your insurance costs.
Security Features*
Please check all of the security features installed in your home:
- Central station fire alarm
- Central station burglar alarm
- Centrally monitored low temperature monitor
- 24 hour alarm system signal continuity
- Stand-by whole house generator
- Lightning protection system
- Water leak detection system
- None of the above
Security Features - Answer
Many insurers offer discounts to homeowners who have taken proactive steps to protect their home from loss.
Valuable Articles Policy*
Do you have a valuable articles or collections policy to cover your most prized possessions? (ex: jewelry, fine art, wine, collectibles, etc.)
- Yes
- No
Valuable Articles Policy - Yes
Many insurance companies offer a portfolio discount on your home policy if you also insure jewelry or other valuables with them. Sometimes the discount on the home policy is greater than the cost of insuring your valuables, especially on homes with values over $1,000,000.
Valuable Articles Policy - No
Many insurance companies offer a portfolio discount on your home policy if you also insure jewelry or other valuables with them. Sometimes the discount on the home policy is greater than the cost of insuring your valuables, especially on homes with values over $1,000,000.
Trust or LLC*
Is your home owned by a trust or LLC?
- Yes
- No
Trust or LLC - Yes
The trust or LLC should be added to your homeowners insurance policy to avoid complications at the time of a claim.
Trust or LLC - No
Keep this in mind for the future. Anytime, you make changes to the ownership structure of your home, whether it is placing it in a trust or LLC or paying off your mortgage, you should inform your insurance advisor. These ownership structure changes can have a major impact on your coverage and/or your premium.
2nd Home*
Do you have a second home?
- Yes
- No
2nd Home - Yes
Most insurance companies will place the insurance for a second home with a non-standard insurer, especially if it is a high value home located in a different state. Some insurance companies have the ability to insure both homes together, whether they are in the same state or not. In many cases, having one insurance company insure all of your homes will provide a lower cost solution and better coverage options.
2nd Home - No
If you ever go through the process of purchasing a second home, you should know that there are insurance companies that can insure both together and this is the preferred structure with respect to cost and coverage.
Umbrella Policy*
Do you have an umbrella/excess liability policy?
- Yes
- No
Umbrella Policy - Yes
Owners of high value homes have significant assets to protect and need high limits of liability coverage to provide that protection. The maximum coverage limit available through most insurers is $5,000,000, but there are a handful of companies who can offer coverage limits up to $50,000,000. The average cost of $10,000,000 of coverage through Chubb, Berkley One, Cincinnati Insurance, AIG Private Client Group or PURE Insurance is about $1,250 per year.
Umbrella Policy - No
A general rule of thumb for Umbrella/Excess Liability coverage is that you should first have enough coverage to match your net worth. The next step is to assess your risk of being sued based on your exposures (ie. you have a pool, young drivers, recreational vehicles). If you need more than $5,000,000 of coverage, Chubb, Berkley One, Cincinnati Insurance, AIG Private Client Group or PURE Insurance will be able to provide the most efficient and cost effective solution.
Flood Insurance Policy*
Do you have a flood insurance policy?
- Yes
- No
Flood Insurance Policy - Yes
The flood insurance marketplace has new options available through companies that previously did not offer a solution. If your home is located in a high risk flood zone or is within 1,000 feet of the coast, you may be able to get the same coverage for a lower price through a new entrant to the flood insurance market.
Flood Insurance Policy - No
Flooding can be caused by heavy rains, snow melt, or overflow of inland or tidal waters. Flood insurance is available in most communities across the United States and should be considered when designing your personal insurance program.
PDF Quiz Results
Would you like to receive a pdf of your quiz results?
- Yes
- No
Review Request
Would you like to conduct a review of your home insurance and receive an insurance proposal for your insurance from a high quality insurance company? (You can start the process online)
- Yes
- No
- Maybe
Insured 1 - First Name*
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Insured 1 - Last Name
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Email address*
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High-Value Home Coverage & Risk Evaluation

Patrick Battle, CIC, CPRIA

RiskRevu^TM Newsletter

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High-Value Home Coverage & Risk Evaluation

Patrick Battle, CIC, CPRIA

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