Do you own a spacious condo with a view on the St-Lawrence River, a unique architect’s home, an exceptional country domain or any other type of luxury home? Since this luxury home is certainly one of the biggest investments you will be making during your life, it deserves to be well protected! Did you know that there are home insurance products specifically designed for luxury homes? These products not only protect your home’s value, but also your peace of mind since you are sure to be adequately covered should something happen. In this article, Assurances Multi-Risques gives you some insights on how to make sure that your insurer fully understands your reality, and therefore provides you with adequate protection for your home.


How to insure a luxury home adequately

Whether you’re a connoisseur of fine wines with a well-stocked wine cellar, an art collector or the owner of a sizeable collection of high-priced watches, your luxury home must come first when it comes to insurance, even before your personal belongings. It is therefore very important to make sure that you have the right type of insurance policy and the right amount of coverage for your high-value property. In order to make sure that things are done properly, we highly recommend that you do business with a certified appraiser who will be able to adequately determine your home’s worth and insurance coverage requirements.

Some specialized insurers will automatically have your house appraised in order to determine your home’s true reconstruction cost. This is an interesting way of proceeding that insures you will be adequately covered in case your home is destroyed. Sometimes clients are unhappy with their home’s evaluation, because they think that the appraisal and the amount of insurance coverage are too high. Be aware, however, that there is a huge difference between a home’s reconstruction cost and the city’s property assessment.


Insurance to meet your needs

If you own a luxury home, we strongly recommend that you find an independent insurance broker with whom you can develop a long-term business relationship. Being fully aware of your particular circumstances, your broker will then be able to find the appropriate insurance products for you. Having a broker shop for you will also free up some precious time that you can spend with your loved ones!

Be aware that insuring a luxury home is very different from, say, insuring a semi-detached house, for instance, since the broker or the insurer must customize the insurance product to the client’s specific circumstances. Indeed, some people will acquire a luxury home, but satisfy themselves with modestly priced personal property, while others will choose a less expensive home that will house high value furniture and goods, whereas others still will opt for a mix between these two scenarios.

As brokers, our role is to tailor an insurance product to your specific needs and to find the insurer who will best serve you. Among other things, we can determine if you will be needing a specialized insurer or if a regular insurer who accepts to cover your luxury home will be appropriate for you. In short, a broker will be able to counsel and to guide you in order to allow you to make the best insurance decision possible in your specific circumstances.


Often forgotten points:

  • Make sure to provide adequate civil liability coverage: we strongly recommend adding an umbrella insurance policy ;
  • Add coverage for sets of specific assets (consult your insurance broker on this matter);
  • Add disclaimers such as replacement cost protection with no obligation to rebuild your home or to replace your personal property (this can make a future claim easier to handle);
  • Make sure to have adequate coverage in case of water damage, but most of all, make sure that your insurable values are appropriate;
  • Make sure to have adequate coverage for costly personal property such a wine collection, jewellery, works of art, and any other outstanding goods.


In conclusion, you most certainly had to work very hard to be able to purchase this luxury home! That’s why it deserves to be well protected in all circumstances! However, finding the right insurer for your house can be challenging. In order to avoid wasting your time and to make sure that your insurance policy adequately meets your needs, contact an independent insurance broker specializing in luxury home insurance. You will benefit from the best advice available and you will be talking to a professional who truly understands your specific reality.