When you buy homeowners insurance, your policy includes a coverage maximum, which is the most amount of money the insurance company will pay you in the event of a covered loss. If your home is worth over a certain amount of money, you might consider purchasing high-value home insurance, which usually has a higher policy limit for more protection.

What is a high-value home?

Your home must meet specific criteria to buy high-value homeowners insurance. From an insurance company’s perspective, a high-value home usually has a replacement cost value of $750,000 or more. The replacement cost value is the amount of money it would cost to rebuild a home back to its original state. It is not the same thing as the home’s market price.

When the insurance company calculates the home’s replacement cost value, it will consider the entire cost of rebuilding beyond the foundation and exterior construction. It also includes the cost of flooring, cabinetry, roofing, built-in appliances and more. Even a modest-sized home can have a high replacement cost value when you consider all these factors together.

What does high-value home insurance cover?

A luxury home insurance policy and a standard home insurance policy have several key differences, particularly regarding the type and coverage amount included. Here are some of the things you may receive with a high-value home insurance policy:

Higher coverage limits

High-value homeowners insurance policies have broader coverage than traditional home insurance policies. Many luxury home insurance policies cover your home and personal property at their replacement cost value on an open perils basis. You might also get higher coverage limits for valuable items or extra perks with your loss of use coverage.

Additional coverages

A high net worth home insurance policy can include additional coverages that are not typically included in standard home insurance policies. For example, many high-value homeowners insurance policies can include water backup coverage, landscaping coverage, identity theft coverage and business property coverage for free.

Policy perks

Some high-value home insurance companies also offer special perks for policyholders. The specific benefits vary based on the insurance provider, but some perks include free home appraisals, a cash settlement option in the event of a total loss, deductive waivers for certain losses and risk consulting to reduce risks in your home.

Dedicated customer service

If you purchase a high-value homeowners insurance policy, you might get access to dedicated customer service. In this case, policyholders are sometimes paired with a concierge or personal representative who can file claims on your behalf, schedule appraisals, find and hire contractors and book a hotel if you need to use your loss of use coverage.

Best companies for high-value home insurance

Company J.D. Power score Average annual premium for $750,000 dwelling coverage
Chubb 778/1,000 $2,709
PURE Insurance N/A $1,839
AIG Private Client 809/1,000 Rates not available
Nationwide Private Client 808/1,000 $1,969

The best companies for high-value homeowners insurance may be Chubb, PURE Insurance, AIG Private Client and Nationwide Private Client. These companies offer a cash settlement option, increased coverage limits for valuables, temporary living arrangements and replacement cost value for your home and personal belongings.

One thing to note about these companies is that they have below-average customer satisfaction ratings. In J.D. Power’s 2020 U.S. Home Insurance Study, Chubb, AIG and Nationwide rated below the industry average. PURE Insurance is not rated at all. However, all four companies have excellent financial strength ratings from AM Best.

Cost of high-value homeowners insurance

In the United States, the average annual premium for a high-value home insurance policy with $750,000 in dwelling coverage is $2,568, which breaks down to about $214 per month. In comparison, the average annual premium for a standard home insurance policy with $250,000 in dwelling coverage is $1,477, which is roughly $123 per month.

Keep in mind that the cost of homeowners insurance is different for everyone. Premiums are calculated based on many factors, including your state, ZIP code, age, credit score, claims history, the type of policy you purchase, the amount of coverage you need, your chosen deductible and available discounts.

How much high-value homeowners insurance do I need?

The amount of high-value home insurance you need should be based on your home’s replacement cost value. For example, if it would cost $1.5 million to fully rebuild your house back to its original condition, including interior work, you would want to purchase at least $1.5 million in dwelling insurance.

For personal property insurance, you should have enough coverage to replace all of your personal belongings, including clothing, furniture, appliances and decor. The best way to estimate the value of your belongings is to create a home inventory. You should also carry enough liability insurance to cover your finances in the event of a lawsuit.

Things to consider when purchasing high-value homeowners insurance

When you purchase a high-value home insurance policy, make sure you are purchasing adequate coverage for your situation, especially if you are a first-time home insurance buyer. Consider choosing an insurance company that offers a dedicated client concierge, and use their expertise to build a customized policy that can help limit risk and provide adequate coverage for your home and personal items.

Another important thing to consider is price. Luxury home insurance policies are usually more expensive than standard policies. To get cheap home insurance, shop around and compare quotes from several providers to make sure you are getting the lowest rate. Also, look for insurance companies that offer discounts you can take advantage of.

Frequently asked questions

What is the best homeowners insurance company?

The best homeowners insurance company varies by individual. It depends on factors like what type of coverage you need, where you live and how much you want to spend.

What information do I need to get a home insurance quote?

Getting a home insurance quote can be fairly simple, and many home insurance companies offer an online quote generator. You will need to provide your personal information, like your birthday and address, and information about your home, like the square footage, materials it was built with and if the home has had any prior insurance claims.


Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $750,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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