Many high-value homes are underinsured due to several factors, including the home’s replacement cost, its high-value art, décor and contents, and its additional structures that are also part of the property.

High-value homes can be significantly expensive to rebuild as they have expensive, unique, and high-end materials and features. To rebuild the total replacement of such a home in a situation of fire, destruction, or damage, it is crucial to consider the full replacement cost of the home.

Many high-value homeowners fail to consider the expensive décor, artwork, furniture, jewelry, high-value personal items, clothing, and other valuables. One must consider whether the contents coverage will suffice to replace these items in case of damage, such as fire, destruction, or theft.

High-value homes also have several amenities, such as guest houses, pools, an outdoor kitchen, outdoor furnishings, sheds, and detached garages, which ensure adequate coverage when a catastrophe strikes.

Another area where high-value homes fail to have adequate coverage is in liability. This coverage section protects property owners when someone visiting their home is injured on their property or decides to sue them.

Liability insurance covers legal defense costs, such as attorney fees, court costs, and settlements or judgments. It also covers medical payments or expenses for individuals that incurred injury on your property, or a result of your actions, regardless of fault.

It is essential to review the policy periodically to see if any updates need to be made. When purchasing a high-end piece of jewelry or artwork to display, it’s a good idea to add it to the list of items covered.

Once renovations are completed, updating the policy if a new structure was added or high-end materials were used is important. There is a chance of being underinsured if the property is damaged and the new additions are not included in the policy for coverage.

Also, considering the location of the property and its potential risks is important when considering coverage. Properties near water bodies or in locations of flood zones are prone to potential risks and may need additional coverage.

One can always ask for or consider additional coverage limits to ensure proper coverage. Consulting with Karstens Financial insurance professionals is key to ensuring adequate coverage is available. Only with regular review can a high-value homeowner ensure that there is sufficient coverage to protect their home and their valuables.