High Value Home Insurance

Valuations for house insurance are usually only compulsory for items for which the replacement value is more than the ‘single item limit’ on your policy. This is the limit the insurer sets for ‘Valuables’ or ‘High Risk’ items such as jewellery, watches or artwork, above which the item must be specifically listed on the policy.

The ‘single item limit’ will vary from policy to policy, so be sure to check yours. You will have to show evidence of ownership if you make a claim, so valuations are still advisable for items of lesser, but still notable value.

Valuations of your home’s rebuild cost can also be advisable, particularly if you are on a ‘blanket’ policy with a set ‘upper limit’ for the sum insured and you are concerned you might be getting close to this, or if you are on a policy that insures for a specific value which is then index linked each renewal and you haven’t had an assessment for a number of years.

If your contents are worth £49,999 or less to replace ‘as new’ then yes! If it would cost more than £50,000 to replace everything in your house, then no. A contents insurance policy will include a clause that requires you to insure all the items in your home (even things you wouldn’t replace) for ‘full replacement value’. If you don’t do this, instead opting for a lower amount perhaps because the premium is cheaper, you could find your policy is null and void.

 A ‘high net worth’ home insurance product is one that is typically made for those whose contents and personal possessions would cost more than £150,000 to replace on a ‘new for old’ basis. For those whose contents are valued between £100,000 and £150,000, there are bespoke ‘mid net worth’ products available, which also offer enhanced cover and higher policy limits than a more traditional home insurance policy.

For a typical home insurer, this could be an item worth a few thousand pounds. Whereas for a ‘mid net worth’ insurer this is more likely to be pieces worth in excess of £10,000, and for a ‘high net worth’ home insurer, it could be anything from £25,000 to £50,000 or more.

The best way to estimate the value of your house contents is to try our quick and easy Contents Calculator. You may find the contents of your home are more valuable than you think.

Having the internet open when going through this exercise is advisable, so you can easily check retail values for key items. Alternatively, there are professional valuation companies who will provide ‘walk through’ assessments, designed to give a high-level overview of your possessions.

When talking about ‘high value item’ cover, this is typically referring to those possessions that might be subject to a ‘single item limit’ and the individual pieces that might exceed this. The categories of items that are subject to such a limit and how much it is will depend on the individual insurer and the terms of their policy.

It is important to check your specific policy, but more often than not it will include jewellery, watches, other items made of or that contain precious metals, artwork, antiques, clocks, barometers and other ‘collectable’ pieces (i.e. stamps, coins, medals, chinaware, glass, etc).

Most home insurance policies will have a limit above which they consider an item to be ‘high value’, but this will vary considerably, depending on the type of product and the insurer. With a traditional policy this may be in the region of £2,500, whilst for a ‘mid net worth’ product this will be more like £10,000 for jewellery or watches, and £20,000 for ‘art, antiques, or collectables’.

A ‘high net worth’ policy will have even greater limits, ranging from £25,000 up to as high as £50,000 for jewellery and watches, and anywhere between £35,000 and £100,000 for ‘art, antiques, or collectables’. If you’re finding that you’re having to specify a lot of items on your current policy, you may find you’re better moving to a policy with higher limits.

A “high net worth” client will usually own between £1 million and £10 million in assets, including their home and contents. An “ultra-high net worth” client will own a home(s) and possessions valued in excess of £10 million. We cater for both high net worth and ultra-high net worth clients.

In home insurance terms, a ‘high net worth’ client is someone whose contents would cost more than £150,000 to replace ‘as new’. Rather than being dictated by the Contents sum insured, ‘ultra high net worth’ clients are often identified by the premium paid. This can vary between insurers but is likely be those paying in the region of £20,000 or more a year. This would potentially be due to the value of the property and its contents or because the policy covers multiple properties and possibly vehicles as well.