High Value Home Insurance

Most homeowners assume that after a total loss, insurance pays to rebuild. Period. But HNW policies offer something far more practical: the option to take cash instead.

How Cash Out Provisions Work for Modern Estates

A cash settlement provision allows you to receive a lump-sum payment rather than rebuilding on the same site. The carrier calculates the reconstruction cost, and you receive that amount (minus your deductible) to use however you choose. You can buy an existing home, build on a different lot, or invest the funds entirely.

This flexibility matters more than people realize. After a catastrophic fire or storm, many families discover they no longer want to live in the same location. Maybe flood risk has increased, the neighborhood has changed, or life circumstances have shifted. A cash settlement removes the pressure to rebuild where you are simply because the policy requires it. Agencies like Avery Insurance Agency, which has spent over 125 years building consultative relationships with clients, often flag this provision during the initial policy design because it's the kind of feature you never think about until you desperately need it.

Rebuilding Elsewhere vs. Accepting a Lump Sum

The decision between rebuilding elsewhere and simply taking the cash isn't always straightforward. If you rebuild on a new lot, some carriers will cover the full reconstruction cost on the new site, provided it's comparable. Others limit the payout to the lesser of reconstruction cost or the policy limit.

One thing to keep in mind: tax implications vary significantly. Insurance proceeds for rebuilding a primary residence are generally not taxable, but a lump sum used to purchase a different property or invested may trigger different treatment. A qualified tax advisor should be part of the conversation before you sign any settlement agreement.

Your home is one asset. The Patek Philippe on your wrist in Geneva, the painting on loan to a friend's vacation home, the jewelry in a hotel safe in Tokyo: these are all assets your policy should follow.

Securing High-Value Possessions in Transit and Abroad

Standard homeowners policies typically cover personal property only at the insured premises, with minimal off-premises coverage (usually 10% of the contents limit). For families who travel frequently or maintain multiple residences, this leaves enormous gaps.

Worldwide contents coverage extends protection to your belongings regardless of location. Your scheduled items are covered whether they're sitting in your living room, being transported by a moving company, or accompanying you on international travel. This includes coverage for mysterious disappearance, a term that means exactly what it sounds like: if a valuable item simply vanishes without explanation, the policy pays. Standard policies almost never cover mysterious disappearance.

Coverage for Art, Jewelry, and Collectibles

Fine art, jewelry, wine collections, and other high-value collectibles should typically be scheduled individually or covered under a blanket amount of specialized coverage. Items can either be specifically listed at an agreed value or insured collectively under a blanket limit covering multiple items. Agreed value coverage helps eliminate disputes over depreciation or valuation at the time of loss. For example, if an $85,000 engagement ring covered on an agreed value basis is lost, the policy would generally pay the agreed insured value of $85,000, subject to the policy terms and conditions.



The key is keeping appraisals current. Art and collectibles markets shift, and a painting appraised at $200,000 five years ago may now be worth $350,000. Most HNW carriers require updated appraisals every three to five years, and some offer inflation guard endorsements that automatically increase scheduled values by a set percentage annually. Working with a consultative agency that tracks these details for you, rather than expecting you to remember appraisal cycles, is the difference between adequate coverage and a painful surprise at claim time.

The liability exposures for a high-net-worth household extend well beyond someone slipping on your front steps. Larger properties, domestic employees, and public visibility create risks that standard policies don't contemplate.

Employment Practices Liability for Domestic Staff

If you employ a nanny, housekeeper, personal chef, groundskeeper, or estate manager, you're an employer with all the legal obligations that entails. Workers' compensation is required in most states for domestic employees, but employment practices liability (EPLI) covers something different: claims of wrongful termination, discrimination, harassment, or wage disputes brought by household staff.

Standard homeowners policies exclude EPLI entirely. HNW policies from carriers like PURE and Chubb can include or endorse this coverage, protecting you against legal defense costs and settlements that can easily reach six figures. A single wrongful termination claim from a long-tenured estate manager can cost $75,000 to $150,000 in legal fees alone, even if the claim has no merit.

Kidnap, Ransom, and Personal Cyber Protection

These sound dramatic until you realize how common the underlying risks have become. Personal cyber protection covers losses from identity theft, cyber extortion, cyberbullying of family members, and fraudulent wire transfers. High-net-worth families are disproportionately targeted by social engineering attacks, and a single compromised email account can lead to six-figure wire fraud losses.

Kidnap and ransom coverage, while less commonly needed domestically, becomes relevant for families who travel internationally or have children studying abroad. The coverage pays for ransom demands, crisis response consultants, and related expenses. These endorsements cost relatively little compared to the exposure they address: often just a few hundred dollars annually for $1 million or more in coverage.

How much does high value home insurance cost compared to a standard policy? Expect to pay $4,000 to $20,000 annually for homes valued between $1.5 million and $5 million, though rates vary significantly by location, construction type, and claims history. The premium reflects broader coverage, not just higher limits.

Do I need a separate policy for my jewelry and art? This depends on the carrier and how they structure coverage. (Some carriers, including PURE, Berkley, and occasionally Cincinnati, do require a separate valuable articles policy.)

Can I insure multiple homes under one policy? Some carriers allow it, while others issue separate policies that are managed together for consistent coverage. PURE, for example, offers multi-residence packaging that simplifies administration.

What triggers the need for a high value policy instead of a standard one? Most specialty carriers set a minimum dwelling value between $1 million and $1.5 million. If your home's reconstruction cost exceeds that threshold, or if you have significant personal property, domestic staff, or complex liability exposures, a standard policy likely leaves gaps.

Does a high-value homeowners policy cover code upgrades? Yes, many high-value homeowners policies include enhanced ordinance or law coverage, which helps pay for the additional cost of rebuilding or repairing a home to meet current building codes after a covered loss. This can be especially important for older, custom, or luxury homes where building standards may have changed significantly over time. Coverage amounts and features vary by carrier and policy form, but high-value home policies generally provide broader protection for code upgrades than standard homeowners policies.

Your Life. Protected.

Complete Personal Insurance for Individuals Who Expect More

One Agency. Every Coverage You Need. No Gaps, No Surprises.

Protect Your Business & Livelihood

Commercial Insurance Solutions Designed for New England Businesses.

Comprehensive Commercial Coverage That Keeps Your Business Running

We Know Your Industry

Tailored Insurance Programs for the Industries That Drive New Hampshire

We Understand the Risks Your Industry Faces — and How to Manage Them

We Make It Simple

Getting Covered with Avery Is Easy

Step 01

Connect with an Avery Advisor

Call, email, or request a coverage online and we will respond the same business day.

Step 02

We Build Your Coverage Plan

We shop top-rated carriers, compare your options, and recommend the best fit for your needs.

Step 03

You Get Protected and Stay Protected

We place your coverage, review it annually, and advocate for you if you ever need to file a claim.

Insurance Tips & News

Stay Informed with the Avery Blog

Practical Insurance Advice for New Hampshire Families and Business Owners