Could your insurance truly rebuild your luxury residence after a total loss?

Too often, high-net-worth homeowners assume they’re adequately protected—when in reality, their policies are built on flawed assumptions. If your coverage is based on your home’s market value, rather than the cost to reconstruct it with today’s materials and labor, you could face a devastating gap in protection.

1. Market Value vs. Replacement Cost: What’s the Real Difference?

• Market Value is what your home might sell for in the current real estate market.

• Replacement Cost is the amount required to rebuild your home as it was—with the same architectural integrity, custom details, and refined finishes—at today’s construction costs.

For homes with bespoke designs, artisan features, and high-end infrastructure, replacement cost will always exceed market value. Relying on the latter can leave you alarmingly underinsured.

2. Why Rebuilding a Luxury Home Costs More Than You Think

Luxury homes are not mass-produced. They are thoughtfully curated, often with rare or imported elements that aren’t easily replicated:

• Imported stone, wide-plank hardwoods, and custom hardware

• Millwork by skilled artisans, handcrafted cabinetry

• Smart-home infrastructure, integrated security, and home cinemas

• Tailored exterior environments—think infinity pools, structured gardens, or gated motor courts

These features can add millions to your rebuild cost—and must be proactively documented and covered.

3. Are You Underinsured? Here’s How to Know.

Ask your current provider the following:

• “Is my policy based on market value or full reconstruction value?”

• “Has my home’s rebuild estimate been reassessed in the last 2 years?”

• “Does my policy include extended replacement cost and ordinance or law coverage?”

If your advisor hesitates, it’s time for a second opinion.

4. What Is Extended Replacement Coverage—and Why It’s Essential

Extended Replacement Coverage offers a 25%–50% buffer beyond your coverage limit to account for unpredictable increases in rebuild costs due to:

• Material and labor shortages

• Surge pricing post-disaster

• Local code changes and permit delays

In Georgia’s volatile construction environment, this provision is not a luxury—it’s a necessity.

5. Real Story: $1.1M Out of Pocket After a Total Loss

A private client’s 7,000-square-foot estate in North Atlanta suffered a catastrophic fire. Their coverage reflected a $2.8M market value, but reconstruction bids came in at $3.9M.
Without extended protection, the client had to absorb the $1.1M shortfall themselves.

Lesson learned: standard coverage doesn’t protect extraordinary homes.

6. Don’t DIY Your Home’s Valuation

High-value homes require a custom-made approach to coverage:

• Independent rebuild valuation from a qualified appraiser

• Risk consultation with an advisor experienced in insuring elite properties

• Policy updates that reflect home improvements and regional cost changes

Final Word: You Deserve More Than a One-Size-Fits-All Policy

At Concierge Insurance Group, we specialize in safeguarding homes that represent more than shelter—they reflect your identity, your accomplishments, and your legacy.

It’s the difference between rebuilding with confidence—or living with costly regret.