Homeowners insurance considerations for high-value homeowners.

High-value homeowners are much more common than you might think, especially here in California. In fact, you could be the proud owner of a high-value home and don’t realize what that can mean if it should be damaged or destroyed. In fact, according to the Natl. Insurance Journal it is estimated that approx. 40% of high-value homes are often underinsured. It is important to understand the proper amounts and types of insurance needed to fully protect your home which is often a family’s biggest asset. If you are a “high-value” homeowner you should . . .

  • Review your current homeowner insurance to make sure you are not underinsured – your home insurance policy should cover what it would cost to rebuild your home, NOT what the market value of your home may be.
  • Determine if you live in a high-risk area for fire, earthquake or flooding and assess what type of insurances you might need to protect your from these types of catastrophes.
  • Check to see if your homeowner policy is “standard” or “superior”.  A standard homeowner policy may not provide enough coverage to properly rebuild or repair your home and guarantee full replacement after a major loss. Your insurance agent can clarify what your policy covers for you.
  • Check your ALE coverage – ALE, or Additional Living Expenses coverage amount within your policy. It should be enough to provide the financial means  for living elsewhere while your home is being rebuilt or repaired.
  • Finally review your homeowner policy for protection for back-up of sewers and/or drains and check with your agent for additional coverage that may be required for high-value items such as jewelry, art, valuable collections, etc. that may require scheduling for their higher values.

For all of your home insurance needs and general insurance advice to ensure that your home is properly protected, contact Randy Jones Insurance Services in Pleasanton, California.