Five to Know If You Write High Value Homes

Five Things You Need to Know If You Write High Value Homes

Monday, July 18, 2016
Five Things You Need to Know If You Write High Value Homes

  • The “high net-worth” or “affluent” consumer market is relatively small. If we define “high value homes” as valued in excess of $1 million, that will include at least 1.2 million US households.

    Nearly half of these households are in catastrophe prone areas of the country, typically in coastal areas.

  • According to a recent article in Insurance Journal, it is estimated that 40% of high value homes are underinsured. Often homeowners will only carry enough insurance to cover their mortgage or the sale price of them home but not nearly enough to rebuild the home in the event of a total loss. Remember, the mortgage or sale price typically doesn’t include any custom work like tile and cabinetry or any specialty construction. Agents must review these details with their clients to make sure they have proper coverage.

  • Luxury condos are a popular choice among high net worth individuals who are looking for a second or seasonal home, particularly in Florida. Many of these people will rent these homes seasonally or use these type homes for “vacation swaps” and Agents need to know if the client is doing this.

  • Most standard homeowner’s policies do not guarantee full repair or replacement in the event of a major loss. High value home insurance typically will cover these costs. Most high value home insurance policies will also provide more generous living expenses coverage than standard policies.

  • The culture of the high value market is to deliver quality products and provide personal attention through the process of securing coverage.

SeaCoast Underwriters, has a new High Value Homeowners Program that is available in all of the states in which we write (FL, GA, NC, NJ, PA, Sc & TX) and starts at a minimum Coverage A of $350,000. The risks considered in this program are as follows:

  • Wind exposures

  • Wind Only Coverage

  • CAT Exposed Locations

  • A wide range of protection classes including PC9/10

  • Vacant & Course of Construction Homes

At SeaCoast Underwriters, Inc., we capitalize on strong company relationships and utilize many years of underwriting experience and expertise to provide you with the highest level of quality insurance options available. With office locations in Coral Gables and Lake Mary, Florida, we are available to assist you in finding the best coverage for your clients. Contact us at 888.774.9977 for any questions!

SeaCoast Staff 7/18/2016

For more information or to get a quote Contact Us Online or call 888.774.9977.