Many homeowners simply assume their insurance will still cover their home when they renovate and make any upgrades. One study of homeowners found that 48 percent believed they will always be covered by their original insurance policy. However this isn’t always the case. Doing significant upgrades can alter your entire insurance policy, depending on the amount of work done. And, in the case of luxury homes, the costs of not being properly insured could be devastatingly high.
Luxury and high end homes require specific, custom coverage that reflects the value of their property and possessions. High end home insurance policies involve a variety of different considerations. Insuring the property, high end furnishings, wall treatments etc., all requires a thorough appraisal and specific coverage that extends beyond a standard policy. Possessions are another crucial consideration as well. Classic and exotic cars, art collections, jewelry and any valuables require appraisal and coverage as well.
It is much more expensive to upgrade luxury homes- it requires higher quality of materials and labor to complete renovations. Thus, the cost of repairing or rebuilding your home is going to be significantly more. Your insurance policy should reflect that.
Don’t make the mistake of starting renovations on your luxury home without doing some homework on your insurance policy first. A high-value homeowners policy should provide higher limits and broader coverage than standard policies and can include customized options for your home’s contents, other structures and additional living expenses.
At Sinclair Risk & Financial Management, we provide specialized insurance and risk management programs that are designed to protect the property and assets of our affluent clientele and their high value homes. We work with many individuals and families throughout Connecticut and beyond to protect their high value homes. Contact us today for more information. (877) 602-2305