HIGH VALUE HOME INSURANCE GUIDE
When Do I Need High Value Home Insurance?
High Value Home Insurance may be appropriate when the rebuild cost of your home, the overall value of your contents or individual possessions exceed the limits of standard household insurance.
It can also be suitable for listed, period or unusual properties, homes containing valuable jewellery, watches, fine art or collections, and households requiring broader protection for possessions away from home.
There is no single value at which a home automatically becomes “high value”. Different insurers have different eligibility criteria, so the overall property, contents and lifestyle need to be considered.
What is High Value Home Insurance?
High Value Home Insurance is specialist household insurance designed for homes, contents and lifestyles that may fall outside the limits of a standard home insurance policy.
It is not simply ordinary home insurance with larger sums insured.
Depending on the insurer and policy, specialist cover can include broader accidental damage protection, higher limits for jewellery and valuables, worldwide all-risks cover, fine art and collections insurance, alternative accommodation and specialist claims support.
Some insurers can also provide home appraisal or risk-management services to help establish suitable rebuilding and contents values.
The exact cover varies between insurers, so the policy should be selected around the property, possessions and individual circumstances rather than simply comparing headline premiums.
What should I consider when arranging High Value Home Insurance?
What would it cost to rebuild my home?
Buildings insurance should reflect the cost of rebuilding your property, rather than its market or sale value.
For larger, listed, period or individually designed homes, the rebuilding cost can be affected by specialist materials, architectural features, professional fees and the cost of clearing and reinstating the site.
What would it cost to replace everything in my home?
It is easy to underestimate the combined value of furniture, furnishings, electronics, clothing and other possessions throughout a substantial home.
Your contents cover should be sufficient to replace everything following a major insured loss, not simply the items you consider most valuable.
Do I own valuable jewellery or watches?
Jewellery, watches and other precious items can quickly exceed the single-item or total valuables limits found within standard household policies.
Specialist insurers can accommodate considerably higher values, although individual items may need to be specified and suitable valuations may be required.
Do I own fine art, antiques or collections?
Paintings, sculptures, antiques, wine, coins, stamps and other collections can require specialist consideration.
High Value Home Insurance can provide broader limits and, depending on the insurer, specialist valuation or claims arrangements for valuable collections.
Do I take valuable possessions away from home?
If jewellery, watches, laptops, cameras or other valuable possessions regularly leave the property, check how they are insured away from home.
Many specialist policies can provide worldwide protection against accidental loss, damage and theft, subject to the policy terms.
Are my valuations up to date?
The value of jewellery, watches, fine art and collectables can change significantly over time.
Regular valuations can help ensure that your sums insured continue to reflect current values and can also provide useful evidence if an item is lost or damaged.
Is my property unusual or listed?
Listed buildings, period properties and homes constructed using unusual materials can be more complicated and expensive to repair following a claim.
A specialist insurer may be better equipped to accommodate the particular construction, features and rebuilding requirements of the property.
Am I planning renovation or building works?
Major extensions, refurbishments and structural alterations can materially change the risk presented to an insurer.
You should tell your broker before significant works begin so that your existing cover can be reviewed and, where necessary, specialist insurance for a home undergoing works can be arranged.
Rebuild cost or market value – what should my home be insured for?
The amount your home might sell for is not the same as the amount it could cost to rebuild.
Buildings insurance should normally reflect the rebuilding cost of the property, including the structure, permanent fixtures and relevant costs such as site clearance and professional fees. The Association of British Insurers specifically distinguishes rebuilding cost from market value.
For substantial, listed, period or unusual homes, establishing an accurate rebuilding value can be particularly important. Specialist materials, bespoke finishes, architectural features and skilled trades can make reinstatement considerably more complex than for a standard property.
Where the correct figure is uncertain, a professional rebuilding-cost assessment may be appropriate.
A full site survey is not always necessary. Specialist firms such as Rebuild Cost Assessment and BCH offer professional desktop rebuild cost assessments, completed remotely using property information, mapping, imagery and established rebuilding-cost data.
These assessments are accepted by many insurers and can provide a convenient, cost-effective way of establishing an appropriate rebuilding value for suitable properties.
Morris Perrin can arrange a desktop rebuild cost assessment on your behalf from as little as £150. For particularly large, complex, unusual or higher-grade listed properties, a full site-based Reinstatement Cost Assessment may instead be recommended.
How should I insure jewellery, watches, fine art and collections?
Standard home insurance policies can impose limits on valuable possessions, including limits applying to individual items or categories of valuables.
High Value Home Insurance can provide considerably greater flexibility for jewellery, watches, fine art, antiques and collections. Depending on the insurer, individual high-value items may be specified separately and some policies can offer agreed-value arrangements.
Accurate valuations are important because the replacement value of jewellery, watches, art and collectables can change significantly. Chubb, for example, recommends regularly reviewing valuations because market values can fluctuate over time.
Keep valuation certificates, purchase receipts and other supporting information somewhere secure. New purchases should also be considered when reviewing your insurance rather than simply waiting until the next renewal.
Why do up-to-date valuations matter and reducing under-insurance issues.
For valuable jewellery, watches, fine art, antiques and collections, an up-to-date professional valuation can be one of the most important documents you hold.
Insurance is intended to put you back, as far as possible, in the financial position you were in immediately before an insured loss. To achieve that, a claim often requires two things to be established: that you owned the item, and what its value was at the time of the loss. A recent valuation can help with both.
It provides a detailed description of the item, often including photographs, materials, identifying features, condition and an assessment of its replacement value. This can be invaluable if an item is lost, stolen or badly damaged and is no longer available for inspection.
Valuations also help reduce the risk of under-insurance. Jewellery, watches, fine art and collectables can increase significantly in value because of changes in precious-metal prices, rarity, demand, exchange rates or market conditions. An item valued several years ago may therefore cost considerably more to replace today.
If the declared value is too low, the policy may not provide enough to replace the item in full and, depending on the policy wording, under-insurance provisions could also affect the amount paid following a claim.
Keeping valuations reasonably current can also make the claims process significantly easier. A recent professional valuation gives the insurer clear evidence from which to assess the loss, reducing uncertainty over the specification and value of the item and helping a valid claim to be dealt with more promptly.
Valuations should therefore be reviewed periodically and following significant changes in value or major purchases. Receipts, certificates, photographs and provenance should also be retained wherever possible.
For particularly valuable collections, it can be sensible to maintain a detailed inventory alongside the valuation documents.
HIGH VALUE HOME INSURANCE GUIDE
When Do I Need High Value Home Insurance?
High Value Home Insurance may be appropriate when the rebuild cost of your home, the overall value of your contents or individual possessions exceed the limits of standard household insurance.
It can also be suitable for listed, period or unusual properties, homes containing valuable jewellery, watches, fine art or collections, and households requiring broader protection for possessions away from home.
There is no single value at which a home automatically becomes “high value”. Different insurers have different eligibility criteria, so the overall property, contents and lifestyle need to be considered.
How should I insure jewellery, watches, fine art and collections?
Standard home insurance policies can impose limits on valuable possessions, including limits applying to individual items or categories of valuables.
High Value Home Insurance can provide considerably greater flexibility for jewellery, watches, fine art, antiques and collections. Depending on the insurer, individual high-value items may be specified separately and some policies can offer agreed-value arrangements.
Accurate valuations are important because the replacement value of jewellery, watches, art and collectables can change significantly. Chubb, for example, recommends regularly reviewing valuations because market values can fluctuate over time.
Keep valuation certificates, purchase receipts and other supporting information somewhere secure. New purchases should also be considered when reviewing your insurance rather than simply waiting until the next renewal.
Why do up-to-date valuations matter and help prevent under-insurance?
For valuable jewellery, watches, fine art, antiques and collections, an up-to-date professional valuation can be one of the most important documents you hold.
Insurance is intended to put you back, as far as possible, in the financial position you were in immediately before an insured loss. To achieve that, a claim often requires two things to be established: that you owned the item, and what its value was at the time of the loss. A recent valuation can help with both.
It provides a detailed description of the item, often including photographs, materials, identifying features, condition and an assessment of its replacement value. This can be invaluable if an item is lost, stolen or badly damaged and is no longer available for inspection.
Valuations also help reduce the risk of under-insurance. Jewellery, watches, fine art and collectables can increase significantly in value because of changes in precious-metal prices, rarity, demand, exchange rates or market conditions. An item valued several years ago may therefore cost considerably more to replace today.
If the declared value is too low, the policy may not provide enough to replace the item in full and, depending on the policy wording, under-insurance provisions could also affect the amount paid following a claim.
Keeping valuations reasonably current can also make the claims process significantly easier. A recent professional valuation gives the insurer clear evidence from which to assess the loss, reducing uncertainty over the specification and value of the item and helping a valid claim to be dealt with more promptly.
Valuations should therefore be reviewed periodically and following significant changes in value or major purchases. Receipts, certificates, photographs and provenance should also be retained wherever possible.
For particularly valuable collections, it can be sensible to maintain a detailed inventory alongside the valuation documents.
What does Worldwide All Risks cover mean?
Worldwide All Risks cover is commonly associated with specialist High Value Home Insurance and can provide protection for insured possessions while they are temporarily away from the home.
Depending on the policy, this may include accidental loss, accidental damage and theft of items such as jewellery, watches, cameras, laptops, fine art and other valuable possessions while travelling in the UK or overseas.
The term “all risks” does not mean that every possible circumstance is insured. Policies still contain exclusions, conditions and limits, so the wording should always be checked carefully.
For clients who regularly travel with valuable possessions, worldwide cover can be one of the significant advantages of a specialist household policy. Chubb, for example, provides worldwide protection for valuables under its specialist high-value offering.
What security might a High Value Home insurer require?
High Value Home insurers will usually expect a good minimum standard of physical security before considering the value of the contents and valuables being insured.
Typical requirements can include suitable locks on all external doors, such as 5-lever mortice deadlocks on timber doors or key-operated multi-point locking systems on modern PVCu and composite doors. French or other double doors may require secure locking at both the top and bottom, while accessible windows are commonly expected to have key-operated locks. Exact requirements vary between insurers and may form a condition of cover.
As the value of the contents, fine art, jewellery and watches increases, insurers may require additional protection. This can range from a good-quality audible intruder alarm to a professionally installed and maintained alarm connected to an alarm receiving centre. The requirement will normally reflect the insurer’s overall theft exposure, rather than simply the value of the property itself.
Jewellery and watches receive particular attention because they are portable, attractive to thieves and can represent a substantial value within a relatively small part of the home. Specialist insurers may therefore consider the total value of jewellery and watches, the highest-value individual item and the amount likely to be worn or taken away from the home at any one time. Chubb, for example, asks for this information when assessing High Value Home risks.
Where jewellery and watch values are higher, a suitable safe may also be required. Insurers can consider the type, make and security or cash rating of the safe when deciding whether it is adequate for the value being stored.
There is no single alarm or safe threshold that applies across every High Value Home insurer. One insurer may accept an audible alarm at a particular contents level while another may require a monitored system because of the overall contents value, jewellery, fine art or other valuables. Hiscox, for example, applies alarm and safe requirements by policy condition where appropriate rather than publishing one universal threshold for every home.
For this reason, security should be considered as part of the insurance review rather than after a quotation has been obtained. Morris Perrin can discuss your existing locks, alarm, safe and other security arrangements with suitable insurers and establish whether any additional measures would be required.
How can Morris Perrin help with High Value Home Insurance?
High Value Home Insurance works best when the policy is built around the individual property and possessions rather than treated as a standard online household quotation.
We can help you consider the rebuilding value of your home, overall contents values, jewellery, watches, art, collections and other valuable possessions, together with the way the property is occupied and used.
We can then approach suitable specialist insurers and explain the different cover options available.
If you already have High Value Home Insurance, we can also review your current policy schedule and discuss any changes to your property, possessions or circumstances ahead of renewal.
Not sure whether you need specialist home insurance?
You do not need to decide for yourself whether your home qualifies as “high value”.
Tell us about your property, contents and valuable possessions and we can discuss whether a standard household policy or specialist High Value Home Insurance is likely to be more appropriate.
Already insured? Send us your current policy schedule and we can use it as a starting point to review your existing cover and next renewal.