What Is Considered a High-Value Home for Insurance Purposes?

When you think of a high-value home, you likely picture a large country house or a luxury property worth millions. But when it comes to insurance, a property’s selling price isn’t the only thing that matters.

Your home’s rebuild cost, size, the value of your belongings and any unusual features can all influence whether high-value home insurance is more suitable.

So, what is considered a high-value home for insurance purposes, and when might you need specialist cover?

Key Points

• There’s no single definition of a high-value home. Insurers have different limits and criteria, so what one considers high value may fall within another’s standard home insurance policy.
• Your home’s market value and rebuild cost aren’t the same. A property worth a substantial amount on the housing market may cost considerably less to rebuild, meaning standard buildings insurance might still be suitable.
• Can valuable belongings make a difference? Yes. Jewellery, artwork and other personal possessions may exceed the limits of standard contents insurance.
• Do you need specialist insurance? Not always. If you only own one or two expensive items, your existing insurer may be able to include them by listing them separately on your contents policy. However, if your home or belongings exceed the limits of standard insurance, specialist cover may be worth considering.

What Makes a Home High Value for Insurance?

There’s no single amount that automatically makes a property a high-value home. Different insurers set their own limits for buildings and contents insurance, and some can accommodate higher values than others.

For example, Hiscox considers properties with rebuild costs over £900,000, contents worth more than £300,000, or jewellery and watches worth over £100,000 combined for its specialist high-value home insurance. However, policy limits vary considerably. AXA’s standard home insurance offers contents limits of £50,000 to £100,000, depending on the policy, while Hiscox also advertises unlimited buildings and contents cover under its general home insurance, subject to certain limits and conditions.

What Property Features Can Affect Your Insurance?

It’s not just the value of your home or belongings that matters, either. The property’s size, construction, grounds and additional features can all affect the insurance you need.

Some examples include:

• Large homes and extensive grounds, particularly properties with several acres of land, landscaped gardens or additional structures and boundaries.
• Outbuildings, such as detached garages, guest accommodation, summerhouses, workshops and other buildings within the grounds.
• Leisure facilities, including swimming pools, tennis courts, gyms, home cinemas and other specialist features.
• Listed and period properties that may require specialist materials or tradespeople for repairs.
• Unusual construction, such as thatched roofs or other non-standard building materials.
• Bespoke interiors and luxury finishes that could be more expensive or complicated to repair or replace.
• Valuable possessions, including jewellery, watches, artwork, antiques and collections.

For example, a property with several outbuildings, a swimming pool and a tennis court may need more detailed consideration than a home without these features. It’s important to establish whether they’re included in the buildings insurance, whether any inner limits apply and whether the insurer needs additional information about them.

Having any of these features doesn’t automatically mean you need high-value home insurance. What’s important is whether your policy provides suitable cover for the whole property, not just the main house.

Why Your Home’s Rebuild Cost Matters More Than Its Market Value

Your home’s market value is what someone might pay to buy it. This is influenced by its location, demand and the local property market.

Its rebuild cost is the amount needed to reconstruct the property following a major loss. This can include materials, labour, demolition, professional fees and specialist building work.

The two figures are generally different.

For example, a property in a desirable location might have a high selling price because of the land and local housing market, but its rebuild cost could be considerably lower. Equally, a listed or unusually constructed property might be expensive to rebuild, even if its market value is relatively modest.

That’s why it’s important to check the rebuild value used for your buildings insurance rather than relying solely on an estate agent’s valuation. If you’re unsure whether your home is insured for the right amount, our article on property rebuild costs explains what to consider.

Can Your Belongings Make Your Home High Value?

Yes. Your home doesn’t necessarily need to be worth millions for specialist contents insurance to be worth considering.

Furniture, clothing, electronics, jewellery, watches, artwork and other possessions can add up to a substantial amount, particularly when you consider what everything would cost to replace today.

Many standard contents insurance policies have a maximum amount they’ll pay for your belongings, as well as separate limits for individual valuables.

If your total contents exceed those limits, you may need a policy that can accommodate a higher value. However, if you only have one or two expensive items, you might be able to add them to your existing policy by specifying them individually. For example, an expensive engagement ring or watch might be covered under your existing contents insurance if your insurer agrees to include it and the policy provides the protection you need.

The important thing is to check the limits, conditions and whether the items are covered away from home.

Do You Need High-Value Home Insurance?

To understand whether your current insurance meets your needs, it’s worth checking:

• Your buildings sum insured: Does it reflect what your home would cost to rebuild, including relevant outbuildings and other structures?
• Your contents limit: Would it be enough to replace all your belongings as new?
• Your valuable items: Are expensive possessions covered within the policy’s single-item limits, and do you have the protection you need when taking them away from home?
• Your property’s features: Does your insurer know about any unusual construction, extensive grounds, leisure facilities or additional buildings?

If your existing policy can’t accommodate your property’s rebuild cost, belongings or other insurance needs, specialist high-value home insurance may be worth considering.

A broker can help you review these details and understand which options are suitable for your circumstances.

Helping You Find the Right Home Insurance

Whether your home is considered high value or not, the most important thing is making sure your insurance reflects what you own and the risks you need to protect against.

At Robison & Co, our brokers take the time to understand your property, belongings and circumstances before helping you find suitable cover.

If you’re unsure whether your current home insurance is appropriate, or you’d like to explore specialist options, call us on 01730 265500 or email hello@robison.co.uk