Luxury homeowners typically have higher liabilities than standard homeowners. A high-value homeowners insurance policy can cover those additional liabilities with more value than a standard plan. Here are a few differences you should be aware of.

Standard Coverage

The insurance firm Allegiant Insurance states that a standard homeowner’s insurance policy covers the personal If someone falls and injures themselves, you have liability protection. Should the home catch fire, both the building and your belongings are covered. In addition, many plans also provide living expenses if your home is damaged by covered events.

High-Value Coverage

A high-value policy typically covers more than a standard policy. A luxury home tends to cost more than an average home. Standard policies may not cover that cost gap. In addition, when personal belongings are covered between 50-70% of the home’s value, it is important for those with expensive items to have that additional coverage. For example, a fire can damage part of the home including antiques, Persian rugs, and expensive jewelry. If your coverage is inadequate, you must make up that difference to replace damaged items.

High-value homeowners insurance may provide the additional coverage your home and belongings need. Understanding the differences between the two policies can help you decide on the best policy for your luxury home.