Purchasing a luxury home is usually the culmination of several years hard work and toil, as money is carefully accumulated and invested into a lavish property. While this may represent a life-long dream, however, it also brings considerable responsibility and you must take the necessary steps to protect your capital.
A luxury or high value home is typically valued at $1 million and above, and it requires special attention and consideration in terms of financing. This not only refers to the required deposit and monthly repayments, however, but also the level of insurance that you need to purchase in order to secure adequate protection.
Protecting your Luxury Home: Accessing Adequate Insurance
Insuring your luxury home is one of the most important steps towards protecting a sizable real estate investment, and obtaining an adequate level of coverage is key to achieving this goal. Consider the following as you engage with insurers and seek out the best available deal: -
Appraise Both the Structure and the Contents of your Home: Not only is your luxury structure worth more than the average home, but your contents are also likely to boast a higher collective value. Therefore, it is important to appraise both the building and your possessions individually, as this will help to determine the true value of your home and the contents that are kept within. Not only does this process secure a more adequate level of coverage, but it also provides you with a complete inventory of your personal belongings that will offer protection in the event of a loss.
Consider the Nature of your Home and any Unique Features: Another key consideration is the type of luxury home that you are looking to insure. Properties such as historic renovations, farms and individually built homes all boast rare and unique features, and these will need to be discussed with an agent prior to determining a customised policy. The coverage that you purchase will need to include provisions to protect the unusual characteristics of a specific building, and any high value artefacts that may be included within.
Evaluate the Merit of an Umbrella Insurance Policy: If you are purchasing a luxury home that boasts considerable value, you may wish to consider the benefits of an umbrella insurance policy. These policies can provide up to $10 million in coverage, and protect you as a home-owner in the event of a liability lawsuit that is brought by a visitor who is injured or wounded on the premises. Although you may consider this scenario to be unlikely, it offers additional protection and helps to ensure that you investment is secured adequately.
The Last Word for Luxury Property Owners
While these considerations are all crucial if you are to secure an adequate level of insurance for your luxury home, this journey must begin with the identification of a reputable provider. Monkey Insurance provides a relevant example, as it is experienced within the industry and capable of delivering customized policies to suit a host of alternative circumstances. With these points in mind, you can confidently go about insuring your luxury home and safeguarding your hard earned capital.
$8.2M "The Ark" is a Fully-Furnished Ode to Modern Art