It’s no secret that insurance rates have risen over the last decade, and homeowners with luxury properties have especially felt the pinch. Stricter underwriting, fewer coverage options, and elevated premiums mean that protecting your home is costlier than ever. Thankfully, there are a few simple steps that homeowners can take to provide added protection to high-value homes.
Home insurance premiums are rising across the country, fewer policies are being written, and policies for luxury homes are especially prone to an increase. Reasons for this vary but often center around the increased frequency and severity of natural disasters, such as hurricanes and flooding. Replacement costs and supply chain issues also play a role. It’s more expensive to build a home today than it was 10 years ago, and specialized finishes, copper wire, and high-end lumber all carry a higher price tag than ever before. Further, the skilled labor it takes to properly build or replace a high-value home is in high demand and comes with a premium.
Given the greater potential for large losses, insurance companies may put an unfair burden on some homeowners when it’s time to collect their premium. A few steps that may potentially lower insurance premiums include:
In a recent New York Times article, columnist David Gelles cites that building with fire-resistant materials, using fire-resistant landscaping, and utilizing hurricane-resistant construction techniques and materials are all smart ways to lower a homeowner’s risks (and, therefore, insurance cost).
Insurance is not a one-size-fits-all product; instead, it can be highly specialized, especially for high-value homes. It’s crucial that homeowners partner with an insurance carrier that specializes in luxury homes and estates. Further, it is often beneficial for homeowners to have all of their assets insured by the same carrier. Cross Private Client Insurance offers a suite of insurance products for homeowners with unique needs.
Contact one of our offices today for a thorough risk assessment and analysis and to find out what steps you can take to help safeguard your investment and to help you ensure that your assets are appropriately insured.
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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.