In Canada, high-net-worth clients’ homes can start at $1,000,000 and go up. Core high-net-worth clients typically own homes, that range between $3,500,000 to $10,000,000 depending on the location. For ultra high-net-worth clients, home values can increase exponentially. These homes have unique features with the use of architects, designers and builders that specialize in this space.
It’s important to understand that a home’s market value and its replacement cost can differ significantly. Even properties that may not appear extravagant at first glance — the interior finishes and outdoor living spaces — can drive the replacement value. Market value is influenced by the neighbourhood and the quality of design and construction (builder or designer), both of which play a role in determining a home’s worth.
True high-net-worth clients will seek out insurers that can provide a home insurance product offering protection for their valuable assets and liability exposures. Additionally, they will want an insurer that can evaluate all potential risks, including items such as high-value dwellings and other structures like garages, boathouses; secondary properties, and offer tailored coverage for their most valued items, such as jewelry, artwork, cyber, family protection, equipment breakdown, legal expenses, automobiles, motorcycles, ATVs, Sea-Doos, as well as an umbrella liability insurance policy.
In order to properly insure these risks, clients will expect an insurer with a dedicated Risk Services Department — one that will work collaboratively with them to enhance home safety and recommend proactive solutions that can help prevent claims. Finally, for peace of mind, clients need confidence that the insurer’s Claims Department is second to none. This includes access to specialized restoration services, expert appraisers for unique collections like art or antiques, and professionals who can guide them through the claims process — ensuring there are no surprises.
What sets Northbridge’s high-value home insurance apart?
The Northbridge Insurance Onyx policy stands out for its unparalleled coverage and flexibility to meet the diverse needs of homeowners with high-net-worth. One of its most notable features is unlimited replacement cost coverage, which ensures full reimbursement for rebuilding your home to its original quality and style. This coverage also extends to personal contents, regardless of whether they’re at home, stored elsewhere, or if there’s a student in your family who’s away at school, your insurance will extend to them and their belongings. Such comprehensive coverage includes all associated costs, from architectural services to specific home features, providing total protection in the event of a loss.
Beyond the extensive replacement cost coverage for building and contents, the Onyx policy includes a variety of tailored coverages to fit your lifestyle and preferences:
- Coverage extended to family members living in a residential health care facility
- Jewelry coverage up to $50,000 per claim
- Works of art up to $250,000
- Cyber insurance up to $100,000
- Equipment breakdown coverage up to $50,000 (Higher limits are available)
- Wine and spirits collections coverage up to $25,000
- Identity theft recovery expense ($50,000)
- Securities limit ($25,000)
- Liability ($2,000,000 per policy annum, including Personal Injury)
Moreover, the policy goes beyond traditional offerings by removing limits on living expenses if you need to relocate temporarily and provides access to professional legal advice, adding a layer of comfort and security.
What does the home insurance cover?
Home insurance policies are tailored to meet the sophisticated needs of affluent homeowners, offering a breadth of coverage and benefits beyond what standard policies provide. These policies are often tailored and customized to align with the assets, exposures of each individual client.
Dwelling and Outbuildings — Structural repair or replacement
While standard home insurance typically limits coverage to the policy’s insured value, Northbridge’s Onyx policy includes “Unlimited Insurance” coverage. This ensures that the insurer covers the full cost of repairing or rebuilding your home to its original condition, even if the cost exceeds your policy limit. This feature is especially beneficial during incidents such as natural disasters, where rebuilding costs can surge unexpectedly. Additionally, high-value policies also offer a cash settlement option, allowing homeowners to receive a cash payout instead of rebuilding.
Personal belongings coverage
High-value home insurance policies provide replacement cost value rather than actual cash value; ensuring the full cost of replacing your belongings is covered. High-net-worth owners often possess items of significant value, such as fine jewelry, luxury furs, rare silverware, firearms, and valuable collectibles like coins and stamps. These items are covered under “Unlimited Insurance” for personal belongings; however, limitations may apply under certain Named Perils for some of the categories listed above. Clients are encouraged to schedule their assets that matter most to them to ensure accurate valuation, proper documentation and description, to support the proper value.
Business Property
High-value home insurance extends to business property kept at home, and in some cases, allow limited business activity on the premises. Typically, the policy is subject to specific guidelines and limitations related to the type of business conducted, value of the contents, and the annual receipts.
Equipment breakdown
High-net-worth clients will acquire advanced technologies in their homes, which makes equipment breakdown an essential coverage. These homes often feature high-tech systems, climate controls and smart appliances. For example, if your air conditioning system’s compressor suddenly breaks down, it may require immediate replacement. This incident could lead not just to the compressor needing replacement but if there’s also damage to the system’s wiring; repair costs could quickly escalate. This coverage ensures you’re protected against the unexpected expenses tied to modern home systems.
Enhanced household protection
Enhanced household protection is a key feature of high-value home insurance, offering financial support in the event of severe and distressing incidents such as kidnapping, child abduction, stalking, home invasion, or hijacking. This coverage is designed to provide reassurance and assistance during extreme circumstances, which activates in the event of a loss of life or a disabling injury resulting from any of these violent threats. Policyholders may receive up to $250,000 per incident, to help manage the financial impact. This can significantly help with various expenses, including medical expenses, lost income, and other related costs.
Wines and spirits
For homeowners with valuable wine or spirits collections, protection against damage and loss is essential. These collections are vulnerable to risks like theft, breakage, humidity and temperature fluctuations, light exposure, and transit-related incidents. High-value home insurance offers specialized wine and spirits coverage to safeguard against these threats. Policyholders can choose between blanket or itemized coverage, both offered without a deductible. The policy is also flexible, with options to increase coverage limits to reflect changes such as additions to your collection.
Smart home water monitoring
Smart Home Water Monitoring is a key feature, designed to reduce the risk of water damage — a leading cause of property loss. These systems actively protect homes from leaks and floods by providing real-time alerts and insights. The Northbridge ONYX policy offers first-year monitoring and initial costs, as a value-add within the ONYX program. By Investing in eligible automatic shut-off systems and water sensors, policyholders may also qualify for discounts or credits on their policy in the years that follow. For more details on eligibility and benefits, it is recommended to consult with your ONYX broker.
How is the value of the home calculated?
Calculating replacement costs for high-value home insurance is a detailed process designed to ensure your coverage accurately reflects the cost of rebuilding your property. Risk services consultants employ various tools and data for precise estimates. These include up-to-date building material costs from various sources within Canada, along with claims data in all regions. Additionally, contributions from independent builders, architectural, and design firms offer additional insight into construction costs and trends, which is particularly important for high-value homes. Often, the firms that originally built the home are best positioned to identify and assess the value of its distinctive features.
Protect the things that matter to you with insurance
Secure your luxury home and prized possessions with coverage designed to match your lifestyle. To learn more about how to safeguard your home and everything in it, visit our High-value home insurance page today!
