If your home is worth more than £750,000 to rebuild, or your contents exceed £150,000, mainstream home insurance is unlikely to be the right fit. High value property insurance is a separate market, with separate insurers, separate underwriting rules, and a fundamentally different approach to risk and claims.
This guide explains how it works, what to look for, and where the common pitfalls are.
What counts as “high value” property insurance?
There is no fixed legal threshold. In practice, insurers in this space (Hiscox, Chubb, AIG Private Client, Lloyd’s specialists, and a handful of others) underwrite when one or more of the following applies:
- Rebuild cost above £750,000-£1m
- Contents above £150,000
- One or more named valuable items (jewellery, art, watches) above £25,000
- Property is listed or has unusual construction
- Multiple properties owned by the same household
- Domestic staff on site
A £4m freehold townhouse in Kensington or a £20m country estate in Surrey both sit firmly in the high-value market. So does a £1.2m apartment with a £2m fine art collection. The trigger isn’t the property price — it’s the complexity and the sums at stake.
How high value cover differs from standard insurance
Sum insured vs schedule
Standard home insurance asks for a single contents figure — usually capped at £75,000 to £100,000 — with a per-item single article limit (often £2,500 to £5,000). Anything above that needs to be specified.
High value policies invert this. You typically get:
- A high unscheduled contents limit (£250,000-£500,000 or more) covering anything not specifically itemised
- A separate schedule of valuables for individual items above £25,000
- All-risks worldwide cover for both, including accidental damage and loss away from home
This means a £15,000 watch lost on holiday, a piece of art knocked off the wall, or a designer handbag taken in a restaurant theft are all covered without needing per-item declarations on each one.
New-for-old and “no average clause”
Most premium insurers waive the average clause (the under-insurance penalty) when you’ve used their valuation service or insured to the recommended sum. They also pay claims on a “new for old” basis without depreciation, which makes a meaningful difference on partial losses.
Reinstatement methodology
Standard policies pay out on indemnity terms with deductions for wear and tear. High value policies pay full reinstatement — the cost to rebuild, restore, or replace as if the loss hadn’t happened. For listed buildings this can include heritage-grade materials and craftsmanship that mainstream insurers will not fund.
Loss of rent and alternative accommodation
If your home is uninhabitable after a claim, mainstream policies cap alternative accommodation at low percentages of the buildings sum insured. High value policies typically offer 25-40% of the buildings sum insured for alternative accommodation, often with no time limit, and let you choose comparable temporary accommodation rather than the cheapest available.
What to look for in a specialist policy
When comparing high value property insurance policies, focus on these structural points rather than price:
1. Rebuild value methodology
The policy should be priced on a professional reinstatement valuation, not a guess. A lot of underinsurance in this market comes from owners assuming the original purchase price reflects rebuild value — it doesn’t. Construction inflation has run materially ahead of property prices in much of the UK over the last five years.
2. Single article limit
Check the unscheduled per-item limit. Some policies cap individual items at £25,000 unless scheduled — others go to £100,000 or more. If you have multiple watches at £15,000-£40,000 each, you don’t want to itemise every one of them.
3. Worldwide all-risks scope
A worldwide all-risks extension should cover items 365 days a year, anywhere in the world, including in transit, in storage, and at second homes. Some policies restrict this to UK-only or apply lower limits abroad.
4. Family extension
The policy should cover the named insured, their spouse/partner, and minor children. Some extend to dependent adult children and resident domestic staff. Check whether items belonging to a partner are automatically covered.
5. Liability limits
Personal liability cover should be at least £5m, ideally £10m. Mainstream policies typically cap this at £2m, which is inadequate for HNW lifestyles where a single guest injury or contractor incident can exceed that.
6. Identity theft and legal expenses
Premium policies often include identity-theft restoration cover and legal expenses for property and lifestyle disputes. These are useful add-ons that mainstream insurers don’t offer.
Common pitfalls
Mixing policies
Splitting buildings, contents, valuables, and travel across different insurers feels like it should save money, but it usually creates coverage gaps where one policy ends and the next begins (e.g. who covers a watch that’s stolen on holiday — your home all-risks or your travel insurer?). A single combined policy with one underwriter is almost always cleaner and cheaper at HNW levels.
Not updating valuations
Watch values, in particular, have moved dramatically in recent years. A Patek Philippe Nautilus 5711 valued at £40,000 five years ago might be £130,000-£180,000 today. If it’s still on schedule at the original figure, a total loss claim will be paid at the lower amount.
Ignoring the alarm warranty
Most premium policies impose an alarm warranty (e.g. monitored alarm set when the property is unoccupied for more than a few hours). Failing to comply can void a theft claim. Read the warranty wording and make sure it matches your routine.
Self-employed or business use
If you run a business from home, accept clients at the property, or store business stock, you may need a separate business interruption or commercial extension. Standard high-value policies exclude business use.
Frequently asked questions
Do I need a separate policy for jewellery and watches?
Not necessarily. Most high value policies include a worldwide all-risks contents section that covers them automatically, with individual scheduling for items above the unscheduled limit. A separate jewellery-only policy is usually unnecessary and can create coverage gaps.
What’s the difference between agreed value and market value?
Agreed value means the insurer commits up-front to a payout figure if the item is totally lost — useful for items that fluctuate in value (watches, classic cars, art). Market value pays whatever the item is worth at the time of loss, which can be lower than what you paid. For collectibles, agreed value is almost always preferable.
How much does high value home insurance cost?
For a typical £3m London property with £500k of contents, premiums usually fall between £2,500 and £6,000 per year, depending on location, security, claims history, and any specific items scheduled. The premium is typically 0.10-0.25% of the total sum insured.
Talk to a specialist
We arrange high value property insurance for clients across the UK. If your existing cover is from a mainstream insurer, or if your assets have grown since your last review, we can usually improve both the price and the breadth of cover. Speak to one of our advisers →