Luxury homes are typically more expensive to insure, but there are ways to save some money.
Of course, the cost of coverage varies based on many factors, including the location, size, and age of a home. However, discounts and credits are available and can reduce premiums by thousands of dollars a year.
Spending money to save money may seem counter-intuitive, but making home updates can lead to a discounted premium. When you replace a roof or update your systems like electrical or plumbing, you reduce the risk of a loss. And that should translate into a lower premium.
The same goes for other risk mitigation, such as adding hurricane shutters or anchoring a home to its foundation for earthquakes.
Then, there’s the bundle. Yes, the topic that insurance companies in television commercials constantly discuss. It’s one of the easiest ways to reduce your homeowners insurance premium, and it’s available for luxury homes too.
Home and auto bundles are probably the most common, but other options are available. For example, according to the Wall Street Journal, high-end insurer Chubb offers up to 7.5% off for bundling home and valuables coverage for jewelry, fine art, wine, or other collectibles.
Other discounts are available as well. And that’s why it’s crucial to have a trusted insurance advisor, as they know the intricacies of high-end insurance.
Another way to reduce your homeowners premium is to increase the deductible. According to the personal-finance website ValuePenguin, raising the deductible from $10,000 to $50,000 for a $5 million home can reduce the premium by 24% a year.
While it might seem obvious, compare insurance companies and policies. Or better yet, trust an independent insurance advisor to do the work for you. A 2021 survey by ValuePenguin, found that a quarter of Americans have never compared multiple insurance quotes.
Given the recent struggles to find coverage in catastrophe-prone areas such as the West, it’s important to have an advisor with insurance expertise on your side. Visit our Contact page if you’d like to learn more about how Premier Private Client can help you.