While most Southborough homeowners are familiar with basic home insurance, many know little about high value homeowners insurance. While there are many differences between the two types of insurance policies, the main distinction is that high value home insurance is ideal for high-value homes. While this may seem obvious, homeowners often struggle to determine which of the two insurance policies best suits their needs. Before you get an insurance policy for your home, conduct research so that you make the right decision.

Top 5 Things to Know About Southborough High Value Home Insurance

Here are the top five things all homeowners should know about Southborough high value home insurance:

1. Many Southborough homes, especially those that are high valued, are underinsured.

Partially due to lack of knowledge about high value homeowners insurance, many homes in the United States are underinsured. Since a high value home is worth a fairly high amount, these homes are easier to accidentally underinsure. A basic home insurance policy is usually only usually sufficient to cover the mortgage or sale price of a high value home. These insurance policies often do not provide sufficient coverage to rebuild the high value home in the event of complete loss.

Basic home insurance policies typically do not provide coverage for specialty construction or custom work. Therefore, homeowners who have a high value home or have had custom work or specialty construction done stand to benefit from high value homeowners insurance.

2. High value home insurance can provide fairly generous coverage for living expenses.

While a high value homeowners insurance policy will cost more than a basic home insurance policy, you can expect to get far more value for your money. Policies for high value homes tend to offer generous coverage for living expenses. For example, if your property suffers major damage from the back-up of the drains and sewers, you can typically count on most high value policies to help cover the cost of these damages. The same cannot be said for basic home insurance policies. If even the generous coverage of a high value policy is not sufficient for your needs, you can customize for higher limits.

3. High value policies can offer sufficient coverage for crimes.

People who can afford a luxury home in Massachusetts tend to fill them with at least a handful of luxury products. Many criminals have learned this from first-hand experience, which is why burglars frequently target high value homes. While security systems are optional for many homeowners, they are practically a necessity for those who own high value homes. Not only can burglar and fire alarms provide homeowners with a sense of safety and security, but they can also qualify a homeowner for credit on their high value policy. Many insurance companies that offer high value policies require homeowners to have these alarms.

4. High value policies provide coverage for personal property.

While basic home insurance policies offer coverage for personal property, there are usually limits in place. For example, a basic home insurance policy may only cover $1,000 in damage or theft costs for jewelry. High value policies tend to have specified limits that can be as high as $10,000.

5. High value policies often provide coverage for flooding damage.

As many as half of all high value homes in the United States are in zones at risk for flooding. Most home insurance policies do not provide coverage for damage caused by flooding. However, many high value policies offer flooding coverage as an option for additional insurance.

Not all Southborough homeowners stand to benefit from high value home insurance, but many of them do. If you’re unsure whether you need a high value policy for your property, please feel free to reach out to a local agent who can walk you through all of the steps to knowing your coverage.