Why High Value Homes Need More Than Standard Home Insurance

Why High Value Homes Need More Than Standard Home Insurance

If you own a high-value home, have substantially improved or extended your property, or own valuable jewellery, watches, fine art or collections, a standard household insurance policy may not always provide the protection you need.

At Morris Perrin Insurance Consultants, we believe arranging insurance for a valuable home should start with understanding the property, its contents and the people who live there — rather than simply entering a few details into an online comparison form.

What is high value home insurance?

High value home insurance is specialist household insurance designed for homes, possessions and circumstances that may fall outside the limits or standard criteria of conventional home insurance policies.

Importantly, you do not necessarily need to own a mansion to require specialist cover.

A fairly conventional family home may still need specialist insurance because of:

• A high rebuilding cost

• Extensive extensions or improvements

• Period or listed construction

• Valuable jewellery and watches

• Fine art, antiques or collections

• Unusual construction

• A high overall contents value

• Significant building or renovation works

  
  

When might standard home insurance be unsuitable?

Mainstream home insurance works perfectly well for many homeowners.

However, once a property or its contents become more valuable, unusual or complicated, standard policy limits and automated underwriting criteria can become restrictive.

An insurer may, for example, place limits on:

• The value of individual items

• Total jewellery or valuables

• High rebuilding costs

• Certain types of construction

• Building works

• Security arrangements

• Previous claims

This is where specialist insurance advice can become important.

Rebuilding cost is not the same as market value

One of the most important figures when arranging buildings insurance is the rebuilding cost of your home.

This is not the same as its market value.

A property's market value is influenced by location, land value and demand. The rebuilding cost considers what it could cost to reconstruct the property following serious damage.

Homes with bespoke finishes, period features, specialist materials or substantial extensions can be particularly expensive to rebuild.

In our day-to-day work as insurance brokers, we regularly come across properties that have been extended or improved over the years while the buildings sum insured has received much less attention.

That is something worth reviewing carefully at renewal.

Valuable possessions need proper consideration

High value home insurance is about much more than the building itself.

Jewellery, watches, art, antiques and collections can increase significantly in value over time.

A collection built up gradually over many years may now be worth far more than its owner realises.

Rather than relying solely on an overall contents figure, it can be important to consider whether particular items need to be:

• Individually specified

• Professionally valued

• Covered away from the home

• Insured above standard single-item limits

This is particularly relevant for expensive watches, jewellery and fine art.

Why use an insurance broker for high value home insurance?

The internet has made buying insurance very easy.

But easy does not always mean appropriate.

A comparison website can assess the information entered into its system. An experienced insurance broker can discuss the things that may not have occurred to you.

At Morris Perrin, we can:

• Discuss your home and possessions with you

• Identify where specialist cover may be appropriate

• Consider rebuilding values

• Review valuable jewellery, watches, art and collections

• Approach appropriate insurers and underwriting agencies

• Explain unusual circumstances to an underwriter

• Compare the cover being offered

• Help with changes during the policy

• Assist if you need to make a claim

For us, that personal relationship is an important part of what an insurance broker should provide.

Specialist insurers can consider individual circumstances

One of the benefits of using a broker is that unusual circumstances can often be explained directly to specialist insurers.

This can be particularly useful for:

• Listed and period properties

• High rebuilding values

• Non-standard construction

• Fine art and valuable collections

• Multiple properties

• Second homes

• Previous claims

• Properties undergoing substantial building works

It does not mean every risk will automatically be accepted, but it allows the circumstances to be presented properly rather than relying only on an automated quotation system.

Home insurance during building works

If you are planning a major extension, refurbishment or structural alteration, speak to your broker before the work begins.

Standard household policies can contain restrictions relating to substantial building works, particularly where structural alterations are involved or the property becomes temporarily unoccupied.

Depending on the project, specialist renovation or contract works insurance may need to be considered.

Morris Perrin regularly assists clients with insurance for properties undergoing building works and refurbishment.

Discussing the project with us before work starts gives us the opportunity to explain the works to insurers and establish how the existing property and the works themselves need to be insured.

The cheapest policy is not always the best policy

Price is important, but it should not be considered in isolation.

Two home insurance quotations can appear similar while offering very different protection.

Differences can include:

• Single-item limits

• Jewellery and valuables cover

• Accidental damage

• Cover away from the home

• Alternative accommodation

• Excesses

• Security conditions

• Exclusions

• Claims settlement terms

Our role as your broker is to help you understand those differences and make an informed decision.

Frequently asked questions

What value does a home need to be for high value home insurance?

There is no single universal figure. Different insurers have different criteria, and rebuilding cost is only one consideration. Valuable contents, jewellery, construction and other circumstances may also make specialist insurance appropriate.

Is high value home insurance only for very large houses?

No. A conventional home may still require specialist insurance because of a high rebuilding cost, valuable possessions, unusual construction or extensive improvements.

Does home insurance cover expensive watches and jewellery?

It can, but policies have different limits. Higher-value items may need to be individually specified and insurers may require recent valuations.

Do I need to tell my insurer about building work?

Major building, extension and renovation works should be discussed with your insurer or broker before the work begins, as standard policies may contain restrictions or conditions.

Talk to Morris Perrin about your home insurance

Morris Perrin Insurance Consultants is an independent insurance broker based in Fleet, Hampshire.

We help clients arrange insurance for high-value homes, valuable possessions and properties with more specialist requirements.

If your current home insurance has simply renewed year after year, or your home and possessions have changed substantially since the policy was first arranged, it may be worth reviewing your cover.

Call Morris Perrin Insurance Consultants on 01252 299094 to discuss your high value or specialist home insurance requirements.

We'd much rather understand your circumstances first and then find an appropriate insurance solution than try to make your home fit a standard policy.

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About the author

Jeremy Perrin CertCIIManaging Director, Morris Perrin Insurance Consultants Ltd

Jeremy works with clients to arrange personal, property and commercial insurance, including homes and properties with specialist or more complex insurance requirements.