subject: Getting The Value From High Value Insurance [print this page] Standard home insurance policies offer great value for money - or so it seems - but for high net worth homes or for individuals with other high value items they can be full of pitfalls which could cost thousands. While the idea of dealing with specialist high value insurers may sound as if it comes at a specialist price, this is not always, or even often, the case. Specialist in this context usually means experienced and knowledgeable. It can also translate into value for money.
The price needs to be right
Whether its high net worth home insurance or yacht insurance it pays to be correctly insured. With standard policies youll find that you, as the insured, are expected to accurately value your home, its contents or the specific item. If you dont and you need to make a claim then you may find yourself paying the penalty. Underestimating the value of items can leave you short by thousands of pounds thanks to the averaging principle. Standard policies will usually pay out on average cost of replacement items if you have under-estimated.
Grand designs?
When it comes to high net worth home insurance, this can be truly devastating. In the event that worst happens you need to be sure that your policy will cover the full costs or repairing or even rebuilding your home. With a standard policy if you have been subject to averaging, the discrepancy between the actual cost and your insurance pay-out could be tens of thousands or more. Although specialist high value insurers deal in expensive properties they also understand the nature of the risk involved in these properties. High net worth homes normally come with some serious precautions in terms of security and they are nearly always well looked after, maintained and fire/flood risks well managed by their owners. This means that the risk for the insurer is low, despite the value of the home itself. In turn, this means that policies from specialists can compete and beat many standard insurance policies.
Holiday Inn? No thanks
Specific terms and conditions that you should consider include details such as what kind of accommodation your insurer will provide should you need to stay away from home while the house is repaired. Specialist insurers will often offer like for like accommodation for your family while repairs take place. This may not be the case for high value homeowners on a standard policy.
Specialist knowledge
Specialist insurers normally offer a full appraisal service - offering detailed and specialist knowledge for high value homes and their contents. This takes away the onus from the policy holder and ensures that the right amount of cover is in place. For those with valuable homes and contents, accurate estimating of the real value of all items can mean becoming a specialist in many different fields, including the art world, antiques world and the ever changing world of property values. Using a specialist insurer takes the hard work out of the process.
Cowboy builders
Not all standard policies will allow you to choose the contractor you prefer to undertake repairs. This can apply to home insurance, yacht insurance and many more. High value insurers will in many cases allow you to take control of the choice, which can be especially important in historic houses. Sixteenth century plaster-moulding, for example, needs a little more expertise than your average plasterer can offer.
Home from home
Other matters that may or may not be covered in some policies include loss or accidental damage cover for items away from home. This can be especially important if you have more than one home - check that cover is worldwide if you spend some of the year abroad and have items that travel with you. When it comes to high value home insurance there are few savings to be made in the long term by using standard providers who do not understand the specialist needs of high net worth home insurance and although we all hope the worst wont happen, it pays to be sure that the worst wont turn into worse still.
by: Charlotte Rivington
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