We believe the best protection starts with asking better questions. To build a smart, personalized risk management strategy, it’s essential to understand your lifestyle, your assets, and the associated risks.
For families with significant property value (typically $1.5M and up), one of the most important questions we ask is:
Does your home and auto insurance truly reflect what it would take to rebuild or replace your property today?
If not, Guaranteed Replacement Cost (GRC) coverage might be the upgrade your portfolio needs.
GRC ensures your home can be rebuilt to its original specifications, no matter the cost. Unlike standard Replacement Cost coverage, which caps payouts at a policy limit (plus a modest buffer), GRC absorbs the full cost of rebuilding even in the face of inflation, labor shortages, or supply chain challenges.
We take the same approach to auto insurance. If your vehicles are vintage, custom-built, or limited-production, does your policy reflect what they’re truly worth? Without Agreed Value coverage, many policies fall short.
For Homes:
Custom architecture, imported finishes, and hillside or coastal locations all introduce complexity and cost into a rebuild. GRC coverage ensures you’re not forced to compromise on quality, scope, or timeline due to an outdated limit.
Chubb’s 2024 Wealth Report found that 79% of respondents ranked the option to rebuild or receive cash after a total loss as their top priority when considering insurance carriers. However, additional research found that over 70% of high-net-worth (HNW) individuals work with standard carriers, a major gap that could impact coverage and replacement cost for HNW individuals and families.
For Vehicles:
High-value vehicles often appreciate, or at the very least, hold their market value differently than standard cars. Agreed Value on a vehicle policy is a pre-determined amount that you and your insurer agree your vehicle is worth at the time you take out the policy.
In a total loss, Agreed Value ensures you receive a predetermined, accurate payout, not a depreciated value that doesn’t reflect your investment.
One of our clients experienced a partial fire loss at their $6M second home in the mountains. With a standard Replacement Cost policy, they would have been capped at $4M, a painful gap. But because they had GRC coverage through a private client carrier, the $6.7M rebuild, including artisan stonework and reclaimed timber, was covered in full.
In another case, a client with a vintage automobile suffered a total loss. Thanks to Agreed Value coverage, they received the full insured amount that reflected the car’s true market value and not an arbitrary book figure.
We partner with best-in-class private client carriers who specialize in the unique needs of high-net-worth individuals. They don’t just insure homes and autos; they understand them, and the lifestyles they support.
If your home exceeds $1.5 million in value, or if your vehicle collection includes anything beyond the ordinary, now is the time to take a closer look at your coverage.
Let’s have a conversation to ensure your insurance performs when you need it most.
Source:
IBNR Weekly, Issue #29, Dowling & Partners, July 24, 2025.
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