Insuring your high-value assets: what you need to know

When you own high-value assets, whether it’s a luxury home, a vintage car or even a piece of art, it’s essential to understand the complexities of insurance to ensure their protection. In this article, we explain what you need to know when you want to insure assets with a higher-than-standard monetary value.

What is a high-value asset?

First and foremost, it’s important to understand what we’re talking about. High-value assets can cover a wide variety of possessions, including a home, a car, jewelry, works of art, or other valuable collections that require more than standard insurance can provide.

Insuring these assets is essential to protect them against various risks such as theft, vandalism, natural causes or devaluation over time.

Insurance for a high-value home

Insurance for a high-value home differs from standard home insurance in that it is flexible and more extensive. It covers not only the structure of the house, but also the valuable possessions inside.

For example, you’re an art enthusiast and have just acquired a brand-new canvas by a promising young contemporary artist. The canvas alone is worth a whopping $50,000. It goes without saying that this is an interesting addition to your personal collection.

One day, a fire breaks out in your house, caused by an electrical short-circuit. The flames spread rapidly, endangering your priceless art collection. Without insurance for your valuable possessions, you risk losing your collection for good, representing not only a considerable financial loss, but also the destruction of your passion and investment.

However, with specific insurance for your high-value works of art, you benefit from adequate coverage. As a result, your insurer will compensate you for fire damage, enabling you to restore or replace these precious possessions.

Experts ready to help

We know that this type of scenario doesn’t happen to everyone. However, we also know that in the event of a claim, standard insurance policies have more limited coverage limits than you might think. That’s why our Signature department, staffed by high-value property insurance experts, caters for customers like you who have slightly more expensive tastes.

What are the options for insuring a high-value asset?

When you’re looking to insure a high-value asset, you have several options to consider. Here are just a few:

Standard home insurance VS high-value property insurance

Standard home insurance is designed to cover goods of average value. It may therefore be insufficient to cover your needs when it comes to high-value property. What’s more, because of their specific or even unique characteristics, homes can be more exposed to certain risks, such as burglary, water damage and other natural causes.

Standard car insurance VS high-value insurance

Like home insurance, standard car insurance has obvious limitations when it comes to protecting high-value vehicles, such as collector cars or luxury models. That’s why it’s best to opt for customized coverage, taking into account the vehicle’s real value and offering extended protection, such as theft or replacement of expensive parts.

Benefits of customized insurance

Customized insurance allows you to tailor coverage to your specific assets. An accurate appraisal of the value of your property is essential to ensure adequate protection. It is important to note that the insurer does not carry out the appraisal of specific assets; this responsibility and the associated costs fall to the owner, and must be carried out by an expert recognized by the insurer. If necessary, the broker can recommend a reliable expert to carry out these valuations, thus ensuring adequate protection against risk.

What are the steps involved in taking out high-value property insurance?

Obtaining this type of insurance involves several crucial steps to ensure adequate coverage. Here’s what you need to do:

Accurate appraisal of the property’s value

The value of your property can be assessed by an independent appraiser. This is essential to determine the appropriate coverage.

Real estate

When it comes to assessing the true value of a property for insurance purposes, close collaboration between broker and customer is essential. This appraisal can include valuable assets such as jewelry, works of art or collections of wine bottles, and enables additional protection to be put in place with more flexible coverage limits. To ensure an accurate appraisal, we recommend using a trusted appraiser recommended by the broker.

Automotive property

When the value of your vehicle reaches $150,000 or more, it’s considered a high-value asset when it comes to auto insurance. Standard insurance policies are often not sufficient to cover these luxury vehicles, making it necessary to obtain insurance more suited to your needs.

Special cases

Some collections, particularly works of art, may exceed the coverage limits offered by standard insurance, requiring you to purchase an additional policy. For example, standard insurance policies may limit the maximum coverage for works of art from $5,000 to $10,000.

Furthermore, the location of your valuables can influence the amount of your insurance premium. For example, jewelry kept in a safe, which offers greater security, may benefit from lower rates than if it is simply stored in a drawer at home.

It is therefore strongly recommended that you call on the services of a competent insurance broker, who can guide you in choosing the best option for your specific needs.

Combining home and car insurance

When you choose to bundle your home and auto insurance policies, you simplify your insurance management considerably, and open the door to significant financial benefits. The result is a better understanding of your needs and efficient coordination of your coverages.

Periodic broker evaluation

It’s essential to regularly review your high-value property insurance with your broker, especially when renovations or improvements are made. This ensures that your coverage remains in line with the evolution of your property.

A few tips for saving money while being insured!

To save money while maintaining adequate coverage for your high-value assets, here are a few tips to consider:

Real estate

• Installing a reliable home alarm system to detect any intrusion.
• The addition of an automatic water shut-off device to detect potential leaks.

Automative property

• Regular servicing of your car for impeccable maintenance.
• Installing a security system, such as a GPS tracking system in case of theft.
• Careful driving on a daily basis.
• Protecting your vehicle from extreme weather conditions with a shelter.
• Purchase of a protective cover for your vehicle.

By adopting some of these measures, you increase the security of your property, which reduces risk, and can therefore lower your insurance premium.

Discuss these options with one of our brokers to determine the potential savings specific to your situation.

What we’ve learned from insuring high-value assets!

Insuring high-value assets is a complex task that requires a thorough understanding of the various insurance options available. The aim of this article is to highlight the main lines to follow, but every situation is different. That’s why at Fort Insurance, we’re here to help you find tailor-made solutions and give you the peace of mind you deserve.