High Value Household Insurance v Standard Household Insurance

Item: Ellis David
Rating: 4.7
Author: kian@digitalnrg.co.uk

When it comes to protecting your property, choosing the right insurance policy is essential. While standard home insurance may be suitable for the average home, it often falls short for those with high value homes, significant valuable items, or multiple properties. That’s where high value household insurance offers a more comprehensive and tailored solution.

In this guide, we’ll explore the key differences between high value home insurance and standard home insurance policies, helping you decide which option provides the right cover for your needs.

What is Standard Home Insurance?

A typical home insurance policy is designed to meet the needs of the average home in the UK. It usually includes:

Buildings insurance to protect the structure of your house
Contents insurance for everyday possessions – usually up to £50,000
Basic home insurance cover for common risks such as fire, theft, and some forms of damage caused

Most standard home insurance policies come with limits on the sum insured, and may restrict cover for high value items, fine art, or properties built with non standard materials.

While this type of insurance cover is often more affordable in terms of insurance premium, it may not provide adequate cover for the full value of more complex or high-end homes.

What is High Value Household Insurance?

High value household insurance (also known as a high net worth policy) is specifically designed for owners of high value property, luxury homes, or those with substantial high value contents.

This type of insurance policy goes beyond standard cover, offering:

Higher or unlimited cover for buildings insurance and contents insurance
Specialist protection for fine art, antiques, and valuable items
Flexible sum insured based on accurate rebuild cost rather than just market value
Enhanced features such as worldwide cover and automatic cover for new purchases

For homeowners with more than one property, including a holiday home, high value policies can often combine multiple properties under one policy, simplifying management and ensuring consistent protection across multiple locations.

Key Differences Between High Value and Standard Home Insurance

1. Level of Cover

The most significant difference lies in the level of insurance cover provided:

Standard home insurance: Typically includes capped limits and a maximum amount payable for claims. Often, standard policies include rebuild cover of £1 million, and contents insurance worth £50,000.
High value home insurance: Offers significantly higher limits, often with unlimited cover, ensuring your home and possessions are properly covered.

This is particularly important if the total value of your property and belongings exceeds the limits of standard home insurance policies.

2. Rebuild Cost vs Market Value

A common misconception is confusing market value with rebuild cost. Market value is the price your home would sell for, whereas rebuild cost is the amount it would cost to rebuild your home from scratch if it was destroyed.

Standard cover may not always account for the true cost to rebuild a property, especially those with non standard materials.

High value household insurance ensures the rebuild cost is accurately assessed so your home is fully protected in case the worst happened.

3. Contents and High Value Items

If you own high value items such as fine art, jewellery, or collectibles:

Standard home insurance often imposes limits per item or for an entire set – generally around £1500-3000 per item, and £5000 for all high-value items.
High value contents insurance provides tailored protection, ensuring high value contents are properly protected, so there are no gaps in your policy.

It can also be tailored to include worldwide cover, meaning your belongings are insured even when taken outside your home.

4. Flexibility and Specialist Cover

High value home insurance offers more specialist cover, including:

Protection for outdoor areas such as gardens and landscaping
Cover for multiple properties and homes in different multiple locations
Tailored policy wording to suit complex requirements

This flexibility ensures your insurance policy reflects your lifestyle, rather than forcing you into a generic plan offered by many insurance providers.

5. Claims Experience

When you need to claim, the difference becomes even more apparent.

Standard home insurance policies may involve stricter conditions, lower limits, and less personalised service.
High net worth policy holders typically benefit from a more bespoke claims process, ensuring faster resolution and better outcomes following an insured event.

Whether it’s a water or oil leak, water leaks, or damage caused by unforeseen circumstances, high value policies aim to deliver peace of mind when it matters most.

6. Additional Benefits

High value policies often include enhanced features not commonly found in standard cover, such as:

Home emergency cover for issues like a broken lock or oil leak
Cover for alternative accommodation if your home becomes uninhabitable
Legal expenses cover for disputes
Protection against accidental damage as standard in most instances

These extras help ensure you are properly protected across a wide range of scenarios.

7. Insurance Premium and Excess

It’s true that high value household insurance generally comes with a higher insurance premium and sometimes a higher excess.

However, this reflects the increased level of cover the cost of rebuilding, repairing, or replacing high-end assets. In many cases, the additional cost is justified by the breadth of protection and reduced financial risk.

Who Needs High Value Household Insurance?

You may benefit from high value home insurance if you:

Own a high value property
Have significant high value contents or valuable items
Require worldwide cover for possessions
Own multiple properties or a holiday home
Need a more tailored insurance policy than what standard home insurance can offer

Even if you currently have a standard policy, it’s worth reviewing whether your current home insurance cover still reflects your needs – especially if you’ve made new purchases or your total value of assets has increased.

Risks of Relying on Standard Cover

Relying solely on standard home insurance policies for a high-value home can lead to underinsurance.

This means that in the event of a claim, your insurer may not pay the maximum value required to fully repair or replace your assets. In some cases, the “average clause” may apply, reducing the payout if your sum insured is lower than the actual full value.

For example, a major water leak or damage caused by fire could result in significant financial loss if your property is not properly covered.

Choosing the Right Insurance Policy

Selecting the right cover depends on understanding your needs and the risks associated with your property.

Consider:

The rebuild cost of your home
The total value of your possessions
Whether you require specialist cover for high value items
If you need cover across multiple locations

When you work with Ellis David, you work with a specialist broker who understands the importance of finding the right insurance. We’ll sit down with you to assess your home insurance needs to ensure you have the most comprehensive coverage for your home.

High Value Household Insurance From Ellis David

While standard home insurance may be suitable for many homeowners, it often lacks the flexibility and depth required for high value homes.

High value household insurance provides enhanced protection, greater flexibility, and higher limits, ensuring your home, possessions, and lifestyle are properly protected.

Ultimately, the goal is simple: to ensure that if the worst happen, your insurance will cover the cost and restore your home and belongings without compromise – giving you complete peace of mind.

Ready to get a quote? Get in touch with Ellis David today for a bespoke quote.

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High Value Household Insurance v Standard Household Insurance

What is Standard Home Insurance?

What is High Value Household Insurance?

Key Differences Between High Value and Standard Home Insurance

1. Level of Cover

2. Rebuild Cost vs Market Value

3. Contents and High Value Items

4. Flexibility and Specialist Cover

5. Claims Experience

6. Additional Benefits

7. Insurance Premium and Excess

Who Needs High Value Household Insurance?

Risks of Relying on Standard Cover

Choosing the Right Insurance Policy

High Value Household Insurance From Ellis David

Ellis David Limited is authorised and regulated by the Financial Conduct Authority.

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152-154 Essex Road, London, N1 8LY

020 7354 3881

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