Trends and Considerations for 2025

High-Value Property Insurance

High-Value Property Insurance: Trends and Considerations for 2025

2024 witnessed a continued surge in the sale of high-value properties across Ireland, a trend that has persisted into 2025 with no signs of abating. This growth has been fueled by a combination of factors, including robust domestic economic expansion, increased foreign investment, positive market sentiment, and the classic interplay of supply and demand dynamics. David Manning from DMG Real Estate emphasises that it is this "combination of factors," rather than a single driver, that sustains the relentless demand for luxury properties.

The Hidden Costs of High-Value Properties

Owning a high-value property involves more than just the purchase price; there are ongoing costs such as maintenance, property taxes, management fees, and insurance. One often-overlooked aspect is home insurance, which can present unique challenges due to the substantial value and specific risks associated with luxury homes.

Insurance Challenges for High-Value Homes

High-value properties typically require increased coverage limits, leading to higher premiums. Insurers often perceive these homes as higher risk due to their significant value and sometimes remote or high-profile locations, further driving up costs. Luxury properties also feature unique elements such as high-end materials, custom finishes, and advanced technology that demand specialised insurance solutions to ensure comprehensive protection.

Determining the accurate replacement cost of a luxury home can be complex, particularly when factoring in valuable artwork, antiques, or collectibles. Insurers may require professional appraisals to assess true value, adding time and expense to the process. It is crucial for homeowners and brokers to engage qualified professionals to avoid ambiguity or disputes during claims.

Understanding Policy Terms and Exclusions

It is vital for homeowners and their brokers to thoroughly understand the terms of their policies. High-value home insurance policies often include exclusions or limitations for specific damages (such as flooding or natural disasters) and may require additional coverage for items like fine art or jewelry. Professional guidance is essential to navigate these complexities and secure the necessary endorsements.

Key Questions to Ask Your Insurance Broker

At Dolmen, we understand the complexities of insuring high-value properties in Ireland. Our expert home insurance team recommends asking the following key questions to ensure you receive the best coverage:

  1. Coverage Options: What types of coverage are available, and can they be tailored to my specific needs and preferences?

  2. Replacement Cost: How is my property's replacement cost determined, and is it sufficient to cover potential rebuilding costs?

  3. Policy Limits and Deductibles: Are the limits and deductibles adequate for my home's value and contents?

  4. Exclusions and Limitations: What exclusions apply to the policy, and can I purchase additional coverage where needed?

  5. Security Requirements: Are there security measures that could influence my premium or coverage, such as alarms or surveillance systems?

  6. Discount Opportunities: Are there discounts available for implementing security measures or maintaining a claims-free record?

  7. Claims Process: How does the claims process work, and what documentation is required in the event of a claim?

  8. Policy Reviews: How frequently should I review my policy to ensure it remains adequate for my evolving needs?

  9. Premium Payment Options: What are the available payment options, and are there discounts for annual payments?

  10. Broker Expertise: What experience does the broker have in dealing with high-value properties, and can they provide client testimonials?

By asking these essential questions and having in-depth discussions with your broker, you can make informed decisions and ensure that your luxury property is adequately protected.

If you own a high-value property and would like to explore your insurance options, our team at Dolmen is here to help. With extensive experience and a deep understanding of luxury home insurance, we can tailor the right coverage to suit your needs and provide peace of mind at the right price.