Why High Valued Homeowners Can’t Buy Brand Name Insurance.

Why High Valued Homeowners Can’t Buy Brand Name Insurance.

Those that are fortunate enough to own $750,000, $1,000,000 or more homes, a standard, off-shelf insurance policy by a “mass market” company won’t do. And if you think because you are with a  “brand name” company so the coverage might be good, guess again – it very likely isn’t!

Let’s start with the home itself, as most insurance companies will limit any replacement of the home to be at 125% maximum of the insured amount (your Coverage A amount). High valued home insurance companies have no limit – it is unlimited, up to and including the true cost to rebuild. Plus, if there are new building codes that need to be followed – like plumbing and electrical – standard companies limit this amount too – high valued homes have unlimited building code upgrades.

In addition, Brand Name home insurance companies either have a mold exclusion or a mold limit of, say $10,000, where high valued home insurance companies have no limit on mold coverage. Sewer and water back-up coverage is again an unlimited amount for high end home owners, standard insurance is usually $5,000 or $10,000 or $15,000 limit.

Water and sewer back up insurance

Water in Basement

How about newly acquired property – like Furs, Cameras, Musical instruments, Fine Art, wine or collectibles? High Valued insurance companies cover up to $50,000 per category, where standard insurance companies is the lessor of 25% of the itemized amount or $10,000. Home invasion coverage – standard insurance companies = none, where high valued insurance is $225,000 for related expenses. Fine arts breakage, standard insurance company is very, very limited – High Valued home policy is included.

Another area of concern is Personal injury, like libel & slander and is included in a high valued homeowner policy, with a brand name company – no coverage. Identity fraud is also an added on cost for most standard insurance companies, High Valued one’s have this covered at $50,000 per occurrence. A large exclusion for those “standard policy” home owners with on premises staff, there is no coverage for any employment practices coverage. With a High Valued homeowner policy, wrongful termination, sexual harassment and employment discrimination (what makes up Employment Practice’s Coverage) are covered and NOT an exclusion.

Theater room at home

Home Theater

High valued homeowners should never buy a homeowner insurance policy based on a brand name. They find out too late, at the time of a claim, that they have very little or sometimes no coverage. The 4 insurance companies that are in this space of insuring High Valued Homes, have years and years of experience doing this. They have built their book of business by becoming experts in this field and are continuing to tweak coverage’s as the demanding insurance consumer is changing.

Claims is where the “rubber meets the road” for most all insurance companies and whether they are any good or not. In my insurance agency, we have fired 2 insurance companies because of their poor claim department and fighting the client on every claim. We could not in good consciousness keep representing them and/or selling their insurance policies.

Claims is especially important for the high end homeowner because the claim amount is usually higher because of cherry floors or wainscoting or marble counters. These add up more quickly and require professional installers to do the job.

Some of the High Valued Homeowner important coverage’s are:

  • Fine Art
  • Wine cellar/ collection
  • Jewelry (bling?)
  • Custom Kitchens
  • Library and Rare Books
  • Theater Room
  • Humidors
  • Cleaning Staff and/or Nanny
  • Crystal Chandeliers
  • And much, much more of hidden coverage’s


These things are NOT covered properly in an “standard” or “brand name” insurance policy. They aren’t set up that way but are mass marketers of insurance.

Call our office before it is too late (716) 684-3203.


Tom Larsen, Licensed Insurance Broker


Related Posts

Leave A Reply