Risk & Business Magazine Bowen Miclette & Britt Spring 2017 | Page 25

HIGH-VALUE & HISTORIC HOMES
Special Considerations For
High-Value And Historic Homes
I
f you own a high-value or historic
residence, you should make sure
you have adequate homeowners
insurance to protect your home,
one of your largest investments.
Your home is not a commodity — and
your insurance shouldn’t be either.
Custom residences need special
considerations in their homeowners
insurance protection. Many of these
residences have spectacular detail
using natural raw materials and unique
artisan workmanship. In addition,
owners of these homes require equally
luxuriant properties at their disposal
if their homes are being repaired or
replaced — over a period of months or
even years. • Look for replacement cost vs. cash
value policies – Be sure you are
covered to replace the home, not
merely rebuild it in accordance with
current market standards.
• Review allowances for loss-of-use
coverage – Purchase a policy that
allows you to stay in comparable
accommodations with no limit to
your length of stay (i.e., until your
claim is complete).
• Ensure that code upgrades are
included – If your home’s heating,
plumbing, or electrical systems are
not up to code, you should have
unlimited coverage to update them
to today’s modern standards.
Nationally, over 6.6 million homes
were built before 1940, according
to government census information.
These homes may have been built
with materials that are no longer
commercially available but are vital to
their historic heritage. The home may
also contain unique workmanship that
is hard to find and expensive to source
in today’s market. A good risk advisor
will determine the home’s age up front
and will explain to buyers the dangers of
purchasing inadequate insurance that
will not cover the costs of rebuilding a
home with such specialized attributes. • Check landscaping allowances –
Your home’s landscaping may be
among its most coveted features;
be sure your policy allows you
to properly restore your home’s
exterior environment.
• Insure yourself for flooding – While
homeowners policies generally
do not cover flooding, an owner
of a high-value or historic home
should have an accompanying flood
insurance policy, ideally through
the carrier providing the original
homeowners insurance.
Here are a few pointers for owners of
high-value or historic homes when
purchasing homeowners insurance:
Homeowners should ensure that both
their agents and carriers are experienced
in covering these unique homes, many of
which hold important historic value far
beyond what their owners enjoy. Once
a claim is filed, it may take intensive
research on the part of experts to be able
to reconstruct the home to its former
grandeur.
BMB has over 30 years of experience
working with high-end homeowners and
has a wealth of specialized knowledge in
this area. In addition to protecting high-
value properties, we help insure jewelry,
personal collections, vehicles, and
personal liability exposures too. Because
of our specialization in this area, we are
often able to provide policies with less
expensive premiums than competitors
and fulfill claims with greater
expediency and attention to detail.
For a personal assessment of your
insurance needs, please contact Mark
Burleson, Director of BMB’s Private
Client Group, at [phone].
BY: MARK BURLESON
BOWEN MICLETTE & BRITT
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