High Value Homes in New York, NY

When obtaining insurance for your unique high-value home, we suggest guaranteed replacement cost coverage. Most standard home insurance carriers do not offer this option. It is only available from carriers specializing in insuring unique and custom homes. It is standard practice of most insurance carriers to insure your home at replacement cost, and for most homes, this is suitable. When obtaining insurance for your unique luxury home, guaranteed replacement cost coverage is designed to better protect your home investment.

Your mortgage requires you to insure your loan’s value, but it may cost significantly more to rebuild your home in the event of a loss. Things such as quality of construction, size, and lo

cation should be considered when determining proper replacement cost, not just the value of the loan.

Most homeowners insurance policies insure your home and its contents for replacement cost, but what does that mean? The insurance carrier will pay to replace your home at the current cost of construction. Guaranteed replacement cost means the insurer will guarantee to replace your home with the same kind and quality of construction – even if that cost exceeds the insurance limits.

For example, if you paid $100,000 to renovate your kitchen 10 years ago, it may cost $150,000 to do that same renovation today. In the event of a covered loss, the insurance carrier will pay you the $125,000 and not figure any depreciation since your cabinets and appliances were 10 years old. If you have to replace hand-selected Carrera marble in your kitchen, the carrier will pay to replace it with the same quality materials. Standard home insurance policies do not.