High-value home insurance

Protect your home with a quality homeowners insurance policy. BrokerLink can help you find the right coverage to safeguard your high-value home.

Understanding high-value home insurance

High-value home insurance is designed to protect homes that have a replacement value exceeding $1,000,000. High-value insurance policies typically feature certain coverages or limits above standard home insurance policies. For this reason, high-value home insurance policies may cost more than a basic home insurance policy. However, they also have greater protection and features, such as cash payout options and home appraisals.

Standard home insurance coverage

To better understand the difference between high-value home insurance and standard home insurance, we are going to break down what a typical home insurance policy includes. Keep in mind that policies vary across Canada.

That said, most aim to protect your home’s physical structure and personal belongings from property damage while protecting you against a whole host of third-party liability risks. Continue reading to learn more about the standard coverage included in home insurance policies, which form the basis of many high-value insurance policies:

Dwelling homeowners insurance

Dwelling insurance protects the physical building and structure you live in. If your high-value home is damaged by an insured loss, such as fire or theft, you may be protected thanks to your dwelling coverage. Dwelling insurance often covers the following perils:

• Fire
• Lightning
• Smoke
• Theft
• Wind
• Car/aircraft impact
• Explosion
• Falling objects

Contents coverage

Contents insurance covers the personal belongings inside your home in the event of loss or damage. Items that contents insurance may cover include furniture, clothing, electronics, sporting equipment, and more.

Personal liability coverage

Personal liability insurance is one final type of coverage commonly included in both standard and high-value homeowners insurance policies. Under the personal liability portion of your policy, you may be covered in the event of a third-party injury on your property. It can help cover everything from legal costs to medical expenses and more. Personal liability can also cover you if your house or property causes damage to a neighbouring home.

Additional home insurance coverage for high-value homes

Some homeowners may wish to purchase additional coverage for protection that goes beyond standard home insurance coverage. This is especially true if you own a high-value home, run a business out of your home, or want the extra coverage and the peace of mind it brings. Please note that the three additional coverages outlined below can be added to an existing high-value home insurance policy as riders or endorsements:

Business insurance

If you operate a business from your luxury home, then it’s important to purchase a business insurance add-on. This is because a standard home insurance policy does not cover business use, so if damage occurs to your property as a result of your business operations, you may not be covered. Ultimately, if your business is linked to your home address, make sure to purchase additional business insurance to go with your home insurance policy.

Equipment breakdown insurance

Equipment breakdown insurance is a great option if you want to be protected in the event of a sudden or unexpected failure of the equipment in your home. Examples of equipment that may be covered include your washer/dryer, kitchen appliances, HVAC units (air conditioner, furnace, heat pump, etc.), and your home security system.

Sewer backup insurance

Sewer backup insurance is one last type of additional coverage that homeowners may wish to add to their home insurance policies. As you might suspect, sewer backup insurance covers you in the event that a sewer backup causes damage to your home. Such incidents can cause major and expensive damage, so adding this endorsement to your policy can provide peace of mind.

How high-value home insurance differs from standard home insurance

Now that you have a better understanding of what standard home insurance policies encompass, let’s dive into the key difference between high-value home insurance and standard home insurance.

Generally speaking, high-value home insurance provides extra coverage, such as cash settlement options, wine collection coverage, fine art coverage, coverage for unique features in high-value homes, and jewellery and furs coverage. It may also automatically include some of the additional coverages described above, like equipment breakdown coverage, along with an umbrella liability policy that covers any vehicles, both auto and recreational, boats and seasonal or rented homes. So, if you want high-value homeowners insurance for your property, talk to your insurance company about the following coverage options:

• Jewellery insurance
• Luxury handbag insurance

We also recommend that you conduct a home inventory of your items and review the home insurance policy you currently have in order to see where any gaps are. This will help you and your insurance company better determine what your unique needs are and where additional coverage is needed.

How to save money on high-value home insurance

Though high-value home insurance typically costs more than a standard home insurance policy, there are ways you can minimize how much you spend. Check out three tips for saving money on high-value home insurance:

Instal a security system in your home

Making your home safer can reduce your high-value home insurance premiums. That is why installing a security system on your property might make you eligible for an insurance discount. However, it’s worth noting that not all security systems qualify for a home insurance discount, so be sure to speak with an insurance broker or provider before purchasing a new system.

Bundle multiple policies together

Another way to save money on high-value home insurance is by bundling multiple insurance policies together. For example, insurance bundles like auto insurance, business insurance, or recreational vehicle insurance, along with home insurance from the same provider, can make you eligible for a discount on each policy.

Make annual payments instead of monthly payments

One last way of saving money on home coverage is by choosing to pay for your high-value home insurance policy annually rather than monthly. Most insurance companies charge extra administrative fees every time you make a payment. Therefore, paying for your policy monthly typically makes it more expensive, as you’re paying these extra fees 12 times a year. Save money by limiting yourself to one annual payment.

Prevent insurance claims

Preventative home insurance claims can put a damper on your premiums, which is why homeowners should implement preventative measures to ensure their properties remain in tip-top shape and their premiums as low as possible. To prevent this, consider doing the following:

• Booking routine home inspections once a year.
• Installing a sump pump and backwater valve in your basement.
• Installing security cameras and an alarm system throughout your property.

Contact BrokerLink for a free home insurance quote

Need home insurance advice? We've got homeowners covered. BrokerLink’s team of fully licensed insurance advisors is available to chat, whether over the phone, by email, or in person at one of our locations. You can also request a free high-value home insurance quote using our online quote tool. All you have to do is answer a few basic questions about yourself and your home, and you will receive an accurate and competitive quote in minutes. No matter how you prefer to get in touch, BrokerLink’s team of insurance brokers will be happy to assist you.

Get a home insurance quote 1-866-724-2372

FAQs: high-value home insurance

Does home insurance cover vehicles parked in driveways?

A common question many homeowners have is, "Does home insurance cover vehicles in the driveway?" The truth is that it depends on the circumstances. For example, if your vehicle was stolen or damaged while in your driveway, your home coverage would not apply. Instead, it would be under your auto insurance, specifically your comprehensive and collision coverage, that would kick into gear. In the event that a tree from your yard fell on your vehicle and caused damage, your home insurance policy may cover the damages to your vehicle.

What is the average cost of a high-value homeowners policy?

The average home insurance cost in Canada is approximately $1000. That said, this will vary between each family and lifestyle. For example, depending on the value of your items and the high-value coverage limits you opt for, luxury homes can anticipate higher rates than this average.

Are police reports required when filing a claim under a high-value homeowners policy?

Whether you're filing a personal insurance claim or one for your luxury home under your homeowner's coverage, whether or not a police report is required for a claim depends on the circumstances of the situation. For example, if a crime occurs, law enforcement should be called to your home, and you would, therefore, receive a report. On the other hand, if a windstorm damages your home, it's likely a report is not needed.

If you have any questions, contact one of our local branches.