In the United States, luxury home insurance comes in many forms. If you own a home in South Jersey that is considered a luxury property, you likely have different insurance requirements than the owners of homes which are much smaller, so it is wise to invest in an insurance policy that has been specially designed for luxury properties.
What Is Luxury Home Insurance?
According to Forbes, a luxury home is usually valued at or above $750,000, but some insurance policies won’t start coverage on a high value home unless it is valued at $1 million or more. When you own an upscale home that falls into this category, standard homeowner’s insurance policies are simply not going to cut it when it comes to enough coverage for your house and the contents within.
Luxury home insurance provides coverage that owners of smaller homes would not require. These policies will cover such items as antiques, art, and expensive jewelry. Even additional endorsements in the policy would leave the homeowner woefully underinsured and exposed. That is why it is so important to invest in South Jersey luxury home insurance.
Benefits of Luxury Home Insurance
When you have invested in a luxury home in South Jersey, you should make every effort to protect your investment. The insurance policy you need will offer you a variety of great benefits. It should have advantages that a normal policy would simply not be able to provide. While normal policies will pay for damage caused to your home from covered perils, they cannot adequately protect upscale homes.
Luxury home insurance policies focus on better dwelling, contents, liability, and additional coverage. With better coverages, there are plenty of advantages, including:
- Extended replacement cost coverage for the dwelling and other structures to reimburse you for repairs to the home above the policy’s listed amount
- “Cash Out” option in the event of a total destruction in South Jersey allows you to build a new home elsewhere
- Superior coverage for precious items such as art, jewelry, and antiques
- Liability coverage with your chosen coverage limit and may include provisions for legal defense costs, not included in the liability limit
- Automatic coverage for sewer backup
- Coverage to replace trees and shrubs
- Increased medical payment limits for injuries caused to others on your property, regardless of fault ($10,000 rather than usual $1000)
- Coverage of up to $10,000 for credit card, forgery, and counterfeit money (standard is $500 limit)
- Inclusion of flood insurance
- Customized policy to include vacation homes
- Potential coverage for kidnapping ransom and extortion
- Deductible waiver for huge losses
- Free or reduced home appraisal cost (you need one to get the policy)
While all of these may not be available in every insurer’s South Jersey luxury home policy, they are often options and possibilities that upscale homeowners should be aware of and be able to take advantage of.
Top Ways to Choose the Right Insurance for You
Before you sign a contract with an insurance company in South Jersey, be sure they are the right one for your luxury home. It is vital that you find out policy limits, coverages included, and any add-ons that will cost you extra. Make sure you ask the insurance agent the important questions about coverages you absolutely need for your home, property, and belongings. The last thing you want is to find out you do not have the proper coverage following a disaster.
Here are some essential questions to ask your insurance agent before you agree to their services:
- How much was my home appraised for?
- How much coverage is provided for my house?
- How much for my belongings?
- Are there any policy addendums and special coverages for valuable art, jewelry, antiques, and collectibles?
- Are my house and contents insured for replacement cost or actual cash value?
- What is my deductible?
- Does my policy include flood, wind, hail, sewer, and water coverages?
Once you get the answers to these questions, you can then compare the different rate offers you received and choose the best one for your home and belongings. Don’t simply choose the first insurer that you find – ask questions to protect yourself and your most valuable asset.
Buy or Sell with Our Experienced South Jersey Realtors
At Your Home Sold Guaranteed Realty - Nancy Kowalik Group, our real estate team has vast experience and knowledge when it comes to helping people like you buy or sell a luxury home. We understand that there are certain requirements to be met to ensure you are able to continue living the specific lifestyle to which you have become accustomed, and we work diligently to find you the perfect home.
Our South Jersey team also understands the importance of insuring your most valuable assets, and we are happy to go through policy options with you and help you determine how much coverage you need. If you have any questions or concerns, feel free to give us a call at (856) 478-6562 or fill out the form below with the requested information. We look forward to hearing from you.