Are you considering purchasing or building a new luxury home in Spokane, WA? A luxury home is considered to be a home where the purchase price is at least 1,000,000, and if you are searching for a luxury home with a lot of amenities, you might be surprised to find out that the home insurance for these types of dwellings is slightly different than a standard homeowners insurance policy. This is because luxury homes cost more, have unique features and are often located in areas prone to certain risks, like floods, mudslides and forest fires. Let’s take a look at luxury home insurance in Spokane.
What Is Luxury Home Insurance?
Luxury home insurance policies are insurance products that are designed to cover the high costs associated with luxury homes that incur damage as a result of a covered event. This is because luxury homes have high price points, high-end, custom features and finishes, and unique amenities. Luxury home insurance policies take all of that into account when calculating your premiums and policy limits.
What Does Luxury Homeowners Insurance Include?
Luxury home insurance tends to include more than a standard homeowners insurance policy because clients with high net worths often need more coverage and a larger variety of coverages inside their home insurance policies. Along with property damage, personal property coverage and liability, luxury home insurance may also include contents replacement cost, high liability limits, a guaranteed rebuild clause in the event of a total loss, a cash-out option and endorsements that aren’t often included in a standard homeowners insurance policy.
Contents Replacement Cost
If you’re considering luxury home insurance, you can opt for contents replacement cost instead of the actual cash value of the items in your home. This means that if your personal belongings and the contents of the home were to be destroyed or damaged by a covered event, you’d be able to recoup the money needed to replace all of the items without having to worry about depreciation.
High Liability Limits
Homeowners with luxury home insurance policies can enjoy higher liability limits for damage to other people’s property or injuries to people who are visiting the property. This helps ensure that you can cover any guest’s injuries or damages that occur on your property.
Certain Endorsements
Individuals who have a luxury home insurance policy have the ability to request certain endorsements be added to their policies. Endorsements that may be available include water backup, landscaping, animal liability, fire, flood, and business property insurance, if your home also contains a business.
Guaranteed Rebuild
If you opt to get guaranteed rebuild coverage on your luxury homeowners insurance policy, you are guaranteed that your home will be rebuilt if it is destroyed by a covered event, even if the cost to rebuild your house is higher than your policy’s limits.
Risk Consulting
Some luxury home insurance policies come with risk consulting. This service helps you locate areas of your home or property that may be prone to certain types of damage from severe weather. One of the most popular risk consulting services is to look for ways to mitigate losses from wildfires.
Home Systems Coverage/ Equipment Breakdown
If you lose items due to the electrical system failing or a mechanical system breakdown, this part of your luxury home insurance policy would help pay for the losses. For example, if you had an antique collection that needed to be stored at a certain temperature and humidity level, and those systems failed, leading to the collection being damaged or destroyed, this coverage would pay you for the loss.
Why Would a Homeowner Want to Consider Purchasing Luxury Homeowners Insurance?
Homeowners who can afford luxury homes often want them in quiet areas with amazing views. That could mean placing the luxury estate along a cliffside, in a forest, next to a large body of water, or in an area known for receiving lots of snow. All of these areas are at a higher risk of experiencing natural disasters than other locations, which means getting good quality luxury home insurance that covers these types of events is essential.
Repairing luxury homes and replacing the contents can also be extremely pricey. What would you do if a fire in your home damaged a priceless collection of paintings or if a severe storm removed your home’s slate roof? Luxury homeowners insurance is designed to help pay for these types of damages.
Luxury Home Insurance in Spokane with Boyd Insurance Brokerage Inc.
If you’re looking for luxury home insurance in Spokane or any of the surrounding areas, we can help you at Boyd Insurance Brokerage Inc. We have the ability to look through hundreds of policies from major insurance carriers, like Progressive, Liberty Mutual and Nationwide, in order to find you the best policy for your luxury home and possessions. In addition to luxury home insurance, we also offer boat insurance, classic car insurance, RV insurance and jewelry insurance.
To get a quote for luxury home insurance, contact us at 509-340-2693.
