Owning a luxury or high-value home comes with unique insurance needs that standard HO-3 policies simply cannot address. From multi-million dollar rebuilding costs to specialized possessions like fine art and collectibles, high-net-worth homeowners require tailored coverage solutions.
Standard policies typically cap dwelling coverage at $1 million or less, leaving high-value properties significantly underinsured. Luxury home insurers like Chubb, AIG, and PURE offer policies with dwelling limits starting at $1 million and extending to $100 million or more. These policies also include guaranteed replacement cost coverage, meaning the insurer will rebuild your home regardless of cost.
Personal property coverage for luxury homes should include scheduled articles for high-value items like jewelry, watches, furs, and fine art. Standard policies often limit coverage for these items to $1,000-$5,000 per category. Scheduled personal property endorsements allow you to insure each item at its appraised value with no deductible.
Additional living expenses coverage is particularly important for luxury homeowners, as rebuilding or finding comparable temporary housing can be extremely expensive. Look for policies that offer “unlimited” loss of use coverage or at least 50% of the dwelling limit.