Your high value home insurance agent may advise you to insure for replacement value rather than market value for your unique home. In a highly appreciated market, the homeowner may end up paying too much for a policy based on market value when the home can be restored for less than market value prices. In contrast, in a declining market, the cost to restore a unique high-value home could far exceed the home’s market value.
A drive-by appraisal is not sufficient for a luxury home. The appraisal must be extremely detailed, taking into account everything from “Olde Worlde” stained glass, imported antique roof tiles, hand-crafted moldings, to century-old marble pillars. The consultant may conduct research to determine not only the cost to replace rare features of the home, but the cost of hiring the skilled artisans needed to do the work.
Fine artwork, heirloom jewelry, and other expensive artifacts require a separate appraiser who is an expert in the area of personal effects. Your high value home insurance agent may walk you through the process of appraising your main house, surrounding properties, and valuable contents, and help to tailor a policy that may financially cover your precious home and all the treasures it holds.