Last reviewed: October 2026 · SmartCoverage Editorial Team · How we research
Your home counts as high value when it would cost roughly $750,000 or more to rebuild. Some insurers set the line at $1 million, and a few start at $500,000. Notice the word rebuild: a $2 million house on expensive land might need only $800,000 of coverage, while a $900,000 house with stone walls and custom millwork could need more than its sale price.
Above that line, two things change. A standard policy starts to leave gaps that matter, and a separate group of insurers, built for expensive homes and the people who own them, becomes worth a quote. This guide covers both.
Start with the right number
Underinsurance is the biggest risk with expensive homes, and it is usually invisible until a total loss. Coverage A is often set when the house is bought and then rises only with an automatic inflation factor. Meanwhile, the cost of custom materials, specialized trades and code upgrades can climb much faster. After a wildfire or hurricane, when hundreds of homes need rebuilding at once, prices jump again.
Most high-value insurers will send an appraiser to measure the house and estimate its rebuild cost, usually for free when you apply. Take them up on it, and repeat it every few years or after any renovation. Then check the result against your policy in the calculator below.
Would your policy actually rebuild the house?
Compare your dwelling limit with an estimate of what rebuilding would cost, including the price spike that follows a regional disaster.
Rebuild cost is not market value: it excludes land and depends on size, materials and local labor. Get an appraisal from your insurer or a builder. Guaranteed replacement terms vary by insurer and may have conditions. For guidance only.
What a high-value policy adds
Standard insurers will write a $1 million dwelling limit, but the policy is usually the same HO-3 or HO-5 form used for a modest house, with bigger numbers. Policies designed for high-value homes change the terms themselves.
| Feature | Typical standard policy | Typical high-value policy |
|---|---|---|
| Rebuilding | Replacement cost up to the limit, sometimes extended by 20% to 50% | Extended or guaranteed replacement cost |
| Total loss | Must rebuild to collect full replacement cost | Cash settlement option, often without rebuilding |
| Belongings | Named perils; low theft limits on valuables | Open perils, replacement cost, broad coverage for valuables |
| Living expenses | Capped, often around 20% of dwelling | Often no fixed dollar cap, for a set period |
| Liability | Commonly $300,000 to $500,000 | $1 million or more, designed to pair with an umbrella |
| Claims | Regular adjusters | Dedicated adjusters, often with a home risk consultant |
The cash settlement option deserves attention. With many standard policies, if your house burns down and you decide to buy elsewhere rather than rebuild, the insurer pays only actual cash value, which deducts depreciation. High-value policies often pay the full replacement cost either way, which gives you a real choice after a disaster.
Many of these insurers also include extras that would be add-ons elsewhere, such as sewer backup coverage, coverage for landscaping and trees, and identity theft protection. Some offer private flood coverage above the $250,000 building limit of the National Flood Insurance Program, which matters for a coastal house worth several times that.
What it costs
Expect a high-value policy to cost two to three times as much as a standard $300,000 policy, according to Insurify. Its average for $1 million of dwelling coverage was $6,947 a year, with $5,556 for $750,000 and $10,172 for $1.5 million.
Among traditional insurers, Insurance.com’s figures for a $1 million dwelling with a $2,500 deductible and $300,000 of liability ranged from $4,356 a year with Allstate to $8,699 with Progressive. State Farm ($5,297), USAA ($5,433) and Travelers ($5,658) were also near the low end.
Location matters even more at this level. The same $1 million of coverage averaged $2,181 a year in Hawaii and $20,711 in Florida in Insurance.com’s state data, with Louisiana, Kansas and Oklahoma all above $12,000. Our state-by-state price guide explains why those states cost so much.
Specialist insurers are not always more expensive. In Insurify’s data for $1 million of coverage with a $10,000 deductible, AIG averaged $5,103 and Chubb $9,504. A larger deductible is common with these companies, and for a household with substantial savings, a $10,000 or $25,000 deductible can cut the premium noticeably without much real risk.
Who to get quotes from
The main high-value insurers are Chubb, AIG Private Client, PURE (a member-owned insurer focused on this market), Cincinnati Financial and newer companies such as Openly. Most sell only through independent agents, so you cannot compare them on a website. An agent who works with several of them can get quotes in one go.
Chubb is the best-known name and ranked third in J.D. Power’s 2026 home insurance satisfaction study among all insurers, which is unusual for a specialist. Our ranking of the best homeowners insurance companies has the full results.
Get at least one quote from a traditional insurer as well. For a home just over the line, with no fine art or unusual features, a well-designed HO-5 policy with extended replacement cost may give most of the protection for less. If the house is older or historic, read our guide to insuring older homes, since matching original materials is where policies differ most.
The rest of the household
Owners of expensive homes usually have other exposures that a home policy alone does not cover well:
- Valuables. Jewelry, art, wine and collections should be scheduled at appraised value. Specialist insurers write these on broad terms, often including accidental breakage and loss.
- Liability. A household with significant assets should carry an umbrella policy of several million dollars. High-value insurers make the home, auto and umbrella fit together without gaps.
- Household staff. If you employ a nanny, housekeeper or gardener, ask about workers’ compensation and employment practices liability, which some specialist policies include or offer.
- Second homes and rentals. A vacation home or a property you rent out needs its own coverage. See our guide to landlord insurance for rentals.
Three questions that matter most
If you only ask your agent three things, make them these. When was the rebuild cost estimate for this house last updated, and by whom? Is replacement cost extended or guaranteed, and what do I have to do to keep the guarantee? And can I take a cash settlement after a total loss without rebuilding?
The answers tell you more about a high-value policy than the premium does. A cheaper quote that rebuilds to a stale figure, or only pays in full if you rebuild on the same lot, can cost far more than the difference in price on the day you need it. Once those are settled, ask about valuables, flood and earthquake gaps, and what a higher deductible would save.
This article provides general information, not personal insurance or financial advice. Coverage terms differ between insurers and states. Review the policy wording with a licensed agent before you buy.