$1,000,000 Closet Caper Raises Question of Home Insurance

Encinitas Real Estate


Everyone likes the idea of having a home full of expensive possessions, but it’s important to recognize that this also demands your Encinitas home is protected with top of the line security and further backed by insurance. Recently, a Houston woman appeared on Good Morning America to show off her 3,000 square foot walk-in closet, complete with all her expensive accessories. Later that day, after the woman left her home, the closet was broken into and, allegedly, $1 million in property was stolen.

Do You Need High-End Encinitas Home Insurance?

It’s important to appreciate that there’s a difference between homeowners insurance and the kind you need if you plan on keeping a small fortune on the premises. What you want is an insurance company that, upon the loss or destruction of your expensive items, will actually replace them to the best of their abilities. If someone were to steal an antique watch, for example, they would search the globe to find an exact replica.

How Much More Will I Pay?

The good news is that in many cases, it would appear as though this type of insurance will actually cost you less to insure your Encintas real estate. In fact, experts say that regarding Encinitas homes worth a million or more, it’s always more affordable to go with high-end insurance which will actually be more affordable than the conventional option.

Where Can I Find this Type of Insurance?

California ShoesNot all insurance companies offer the high-end option. In fact, in the U.S., only five companies exist that specialize in providing home owners insurance for expensive properties. And when it comes to high-end insurance, you definitely want to go with a specialty company.

However, these companies generally don’t work with individuals. Instead, you’ll need to go through a broker who will help you get in contact with these insurers and negotiate a fair price for your needs. In order to do this, the broker will have to ask you a number of questions and get a feel for the insurance your property demand.

What Kind of Property Is Covered?

All kinds of Encinitas property can be covered under this type of policy—it will largely depend on the specific one you go with and the company you decide on.

Most personal belongings, though, would be considered covered like purses, clothes, furniture, consumer electronics and more. Again, though, the amount of coverage you’ll have will vary. For many situations, only a certain amount of your, say, jewelry would be covered and there may even be a percentage deductable added on. So for $100,000 loss, you might be charged a 1% deductible and only receive $60,000 back in compensation.

Umbrella Policies

Lastly, umbrella policies are an added layer of protection that also helps out in the worst case scenario. Often, they come into play when someone gets sued for a lot of money. $500 is often all it takes to have a million dollar umbrella policy helping you fight back.

If you’re going to live a high-end lifestyle, be sure you have the insurance to go with it too.

~ Cherie Young ~