Powered by Coverage.com (NPN: 19966249)
High-value home insurance: What it is and who needs it
Edited by
Powered by Coverage.com (NPN: 19966249)
Key takeaways
- High-value home insurance offers tailored coverage options and can prevent coverage gaps for expensive homes
- Luxury homeowners may find added financial protection, flexibility and peace of mind with high-value home insurance
- Bankrate found that The Hartford, Farmers, Chubb and PURE Insurance write some of the best high-value home insurance policies
What is a high-value home?
In the insurance world, a high-value home is usually defined as a dwelling with a replacement cost of $750,000 or more. Note that the replacement value is not the same as the market or listing value. Replacement value is related to construction prices and how much it would cost per square foot to rebuild your house to its former condition if it was destroyed or damaged in a covered peril. Market value includes parts of the home and property that are not insurable, such as land and a desirable school district.
Homes that qualify for high-value insurance may have unique or historical elements that don't qualify for standard coverage since they can't be duplicated cost-effectively, such as plaster moldings or hand-carved newel posts. Or some homes may have the exact opposite issue, with the latest smart home systems or gourmet kitchens being fairly easy to replace but incredibly expensive.
In most cases, once a licensed insurance agent determines your home's replacement value, they will direct you to a carrier specializing in high-value home insurance if your home's dwelling coverage exceeds the risk threshold of most standard carriers.
What does high-value home insurance cover?
A luxury homeowners insurance policy and a standard homeowners insurance policy have several key differences, particularly regarding the type of coverage and coverage limits 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 typically 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. This means that any losses not specifically excluded are covered. You might also get higher coverage limits for valuable items or extra perks with your additional living expenses coverage.
Additional coverage options
A high-value home insurance policy might also include additional coverage types that are not typically included in standard home insurance policies. For example, many luxury homeowners insurance policies may automatically include water backup, landscaping, identity theft and business property coverage. On standard home insurance policies, you typically have to request to add these coverages and pay extra for them.
Policy perks
Some of the best 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, deductible 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
According to our research, the best high-end insurance companies include The Hartford, Farmers, Chubb and PURE Insurance. These companies offer options that high-value homeowners may find appealing. All but PURE Insurance are ranked in the J.D. Power 2024 U.S. Property Claims Satisfaction Study, showcasing their ability to provide a high level of customer service.
To determine the high-valued home insurance companies to feature, we evaluated coverage options, policy features and average premiums obtained from Quadrant Information Services. We also evaluated J.D. Power customer satisfaction scores and AM Best financial strength ratings to assess an insurance carrier’s history of being able to meet financial obligations.
|
|
|
|
|---|---|---|
|
705
/1,000 |
$3,525
|
|
|
725
/1,000 |
$3,911
|
|
|
773
/1,000 |
$5,742
|
|
|
676
/1,000 |
$5,606
|
|
|
Not rated |
$6,416
|
Compare home insurance rates
Answer a few questions to see personalized rates from top carriers.
Powered by Coverage.com (NPN: 19966249)
Cost of high-value homeowners insurance
In the U.S., the average annual premium for a high-value home insurance policy with $750,000 in dwelling coverage is $4,437, which breaks down to about $370 per month. In comparison, the average annual premium for a standard home insurance policy with $300,000 in dwelling coverage is $2,329, which is roughly $194 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 of residence, claims history, policy type, amount of coverage, chosen deductible and applied discounts. In most states, your ZIP code, the age of your home and your credit history also play a part in determining your premium, although not all states allow the use of these rating factors.
How much high-value homeowners insurance do I need?
Knowing how much home insurance you need can be tricky, but with a bit of research, you should be able to get a decent idea. To determine how much high-value home insurance you need, you may want to consider:
- Your home's replacement cost: Consider how much it would cost to rebuild your home to its former condition in the event of a total loss. Some carriers offer flexible rebuilding options if your home is destroyed in a covered event, allowing homeowners to choose to rebuild or simply receive their dwelling coverage payout as a cash settlement. This gives you the flexibility to rebuild, downsize or move.
- Your personal property amount: Your personal property coverage should be enough to replace your belongings, from furniture to clothing to appliances. It can be useful to have a home inventory on hand before you need to file a claim.
- Your liability risks: Standard home insurance policies usually come with a minimum of $100,000 in liability coverage. High-value homes are typically owned by high-net-worth individuals, who are at higher risk of being sued. Consider adding an umbrella policy to your insurance toolbox, especially if you have frequent visitors or there is a pool or other potential hazard on your property.
- Additional living expenses: This coverage would apply if you were unable to live in your home due to a covered loss. It can help pay for lodging, food and other expenses until you can move back into your home.
- Customer service: Coverage is important, but so is the quality of service you receive when selecting policy coverage and filing claims. Consider a carrier with experience insuring and analyzing risk associated with high-value homes.
- Affordability: Finding cheap home insurance for a high-value home can be challenging. It's not just policy limits that factor into insurance rates, but also the risk of incurring loss. While expensive homes can be a target for theft and liability claims, it is still worth it to shop coverage with various carriers to find a rate you are comfortable with.
- Your coverage needs: Even high-value home policies have exclusions. You may need to personalize your policy with endorsements like flood insurance, identity theft, water backup and service line coverage.
Insurance experts caution homeowners that not all policies are the same. Just because you have a high-value insurance policy doesn’t mean it automatically meets all your needs. Working with a licensed insurance agent can help you craft the right policy that checks all the boxes.
It's not guaranteed, but it's possible your policy will go beyond what a standard HO-3 policy offers; maybe water backup is covered under your base policy, or your personal belongings are automatically insured at their replacement cost value. That said, don't make any assumptions — just because a policy is marketed as 'high-value' doesn't mean everything is covered. Flood and earthquake damage, for instance, won't be covered by a standard home insurance policy.Natalie Todoroff, Bankrate insurance expert
Frequently asked questions
Methodology
Rates
Bankrate utilizes Quadrant Information Services to analyze May 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage limits:
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
If otherwise specified, the base profile has been modified with the following homeowner characteristics:
Bankrate Score
Our 2025 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well home insurance companies satisfy these priorities, our team analyzed average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
