Protect your home with quality homeowners insurance. BrokerLink can help you find the right coverage to safeguard your high value home.
High value home insurance defined
High value home insurance is designed to protect homes that have a replacement value exceeding $1,000,000. High value insurance policies typically feature certain coverages or limits above standard home insurance policies. For this reason, high value home insurance policies may cost more than a basic home insurance policy. However, they also have greater protection and features, such as cash payout options and home appraisals.
Standard home insurance coverage
To better understand the difference between high value home insurance and standard home insurance, we are going to break down what a typical home insurance policy includes. Keep in mind that policies vary across Canada. That said, most aim to protect your home’s physical structure and personal belongings from property damage while protecting you against a whole host of third party liability risks. Continue reading to learn more about the standard coverage included in home insurance policies, which form the basis of many high value insurance policies:
Dwelling
Dwelling insurance protects the physical building and structure you live in. If your high value home is damaged by an insured loss, such as fire or theft, you may be protected thanks to your dwelling coverage. Dwelling insurance often covers the following perils:
- Fire
- Lightning
- Smoke
- Theft
- Wind
- Car / aircraft impact
- Explosion
- Falling objects
Contents
Contents insurance covers the personal belongings inside your home in the event of loss or damage. Items that contents insurance may cover include furniture, clothing, electronics, sporting equipment, and more.
Personal liability
Personal liability insurance is one final type of coverage commonly included in both standard and high value homeowners insurance policies. Under the personal liability portion of your policy, you may be covered in the event of a third party injury on your property. It can help cover everything from legal costs to medical expenses, and more. Personal liability can also cover you if your house or property causes damage to a neighbouring home.
Additional home insurance coverage for high value homes
Some homeowners may wish to purchase additional coverage for protection that goes beyond standard home insurance coverage. This is especially true if you own a high value home, run a business out of your home, or want the extra coverage and the peace of mind it brings. Please note that the three additional coverages outlined below can be added to an existing high value home insurance policy as riders or endorsements:
Business insurance
If you operate a business from your luxury home, then it’s important to purchase a business insurance add-on. This is because a standard home insurance policy does not cover business use, so if damage occurred to your property as a result of your business operations, you may not be covered. Ultimately, if your business is linked to your home address, make sure to purchase additional business insurance to go with your home insurance policy.
Equipment breakdown insurance
Equipment breakdown insurance is a great option if you want to be protected in the event of a sudden or unexpected failure of the equipment in your home. Examples of equipment that may be covered include your washer/dryer, kitchen appliances, HVAC units (air conditioner, furnace, heat pump, etc.), and your home security system.
Sewer backup insurance
Sewer backup insurance is one last type of additional coverage that homeowners may wish to add to their home insurance policies. As you might suspect, sewer backup insurance covers you in the event that a sewer backup causes damage to your home. Such incidents can cause major (and expensive) damage, so adding this endorsement to your policy can provide peace of mind.
How high value home insurance differs from standard home insurance
Now that you have a better understanding of what standard home insurance policies encompass, let’s dive into the key difference between high value home insurance and standard home insurance. Generally speaking, high value home insurance provides extra coverage, such as cash settlement options, wine collection coverage, art collection coverage, and jewellery and furs coverage. It may also automatically include some of the additional coverages described above, like equipment breakdown coverage, along with an umbrella liability policy that covers any vehicles (both auto and recreational), boats, and seasonal or rented homes.
How to save money on high value home insurance
Though high value home insurance typically costs more than a standard home insurance policy, there are ways you can minimize how much you spend. Check out three tips for saving money on high value home insurance:
Install a security system in your home
Making your home safer can reduce your high value home insurance premiums. That is why installing a security system on your property might make you eligible for an insurance discount. However, it’s worth noting that not all security systems qualify for a home insurance discount, so be sure to speak with an insurance broker or provider before purchasing a new system.
Bundle multiple policies together
Another way to save money on high value home insurance is by bundling multiple insurance policies together. For example, purchasing auto insurance, business insurance, or recreational vehicle insurance, along with home insurance from the same provider can make you eligible for a discount of up to 15% per policy.
Make annual payments instead of monthly payments
One last way of saving money on home insurance is by choosing to pay for your high value home insurance policy annually rather than monthly. Most insurance companies charge extra administrative fees every time you make a payment. Therefore, paying for your policy monthly typically makes it more expensive, as you’re paying these extra fees 12 times a year. Save money by limiting yourself to one annual payment.
Contact BrokerLink for a free high value home insurance quote
Want to learn more about high value home insurance? BrokerLink’s team of fully licensed insurance advisors is available to chat, whether over the phone, by email, or in person at one of our locations. You can also request a free high value home insurance quote using our online quote tool. All you have to do is answer a few basic questions about yourself and your home and you will receive an accurate and competitive quote in minutes.
No matter how you prefer to get in touch, BrokerLink’s team of insurance brokers will be happy to assist you.
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