$10M+ Ultra-Luxury Homes, Wealth Migration Drive Demand for High-Value Solutions

High-end home sales in South Florida rose sharply at the start of the year, according to new figures from the Miami Association of Realtors. In January, sales of properties priced at $1 million or more increased 21% in Miami-Dade County and 14% in Broward County compared with the same month last year, the Miami Herald reported Feb. 23. Condo purchases in that price range also climbed, rising about 21% in Miami-Dade and 26% in Broward.

The region continues to draw affluent buyers from states such as California and New York, according to the real estate association, and last year recorded the most $20 million-plus condo sales and the second-highest number of $10 million-plus home sales in its history.

“Miami continues to be a hub of overall luxury,” said Kris Guasch, Associate Managing Director, Underwriter, Personal Insurance, Burns & Wilcox, Ft. Lauderdale, Florida. “It is a wealth capital of the country.”

Miami continues to be a hub of overall luxury. It is a wealth capital of the country.

Nationally, the “ultra-luxury” housing market has also posted strong gains. A Feb. 6 report from the magazine National Mortgage Professional, citing data from real estate brokerage Compass, found that 2,261 homes priced at $10 million or more sold in 2025, totaling $38.6 billion in transactions, as sales expanded beyond traditional wealth centers like New York and Los Angeles. In the broader luxury segment, prices rose 4.6% year over year in December, outpacing overall market growth of 1.4%, according to data from Redfin.

As high-value homes become more common, insurance considerations are also evolving. High-Value Solutions including High-Value Homeowners Insurance and other policies can help address property exposures, liability, valuable collections, and more, said Marc Linton, Senior Underwriter, Personal Insurance, Burns & Wilcox, Orlando, Florida.

“There are definitely additional considerations that need to be taken for high-value homes,” he said. “Many of these homes are going to have custom finishes and special-ordered materials. They may have additional structures like pool houses, detached mother-in-law suites, or boat docks.”

Luxury home growth sharpens focus on insurance

The growth of luxury real estate comes at a time when rebuilding costs remain elevated across the U.S. According to the National Association of Home Builders, construction costs made up 64.4% of the average price of a new home in 2024 — up from 60.8% in 2022 — and a recent survey showed many home builders continued to struggle with labor shortages and increased material costs at the start of 2026.

Increased rebuilding costs affect how luxury homes are insured, Guasch said. “A home that might have cost $150 to $200 per square foot to rebuild could now be anywhere in the range of $350 to $400 per square foot just due to inflation,” he said, adding that some high-value homes may exceed the coverage capacity of traditional Homeowners Insurance carriers. “A lot of the standard insurance markets are not really equipped to handle the total insurable value of some of these ultra-high-value properties.”

A home that might have cost $150 to $200 per square foot to rebuild could now be anywhere in the range of $350 to $400.

In markets like Florida, where new insurers have entered the space in recent years, an insurance carrier’s financial strength and long-term stability are key considerations for homeowners, Linton said. “There are companies that have been operating in the state for less than a year and are writing multi-million-dollar homes,” he said. “That raises questions about how much capital they have if a major catastrophic event occurs.”

There are companies that have been operating [in Florida] for less than a year and are writing multi-million-dollar homes. That raises questions about how much capital they have if a major catastrophic event occurs.

Accurately insuring high-value homes requires careful guidance, particularly as replacement costs rise. “It is definitely recommended to sit down with a true risk advisor and look over not only the home, but all of the liability exposures as well,” Guasch said. “There are many optional coverages that are not necessarily included on a standard Homeowners Insurance policy.”

Coverage gaps may extend beyond primary structure

Luxury homes often carry exposures that go beyond the physical dwelling. High-net-worth homeowners frequently own valuable furnishings and collections that may need protection outside of High-Value Homeowners Insurance, often through a Personal Articles Floater, a standalone policy offering broader coverage and higher limits.

“A lot of times, high-net-worth individuals may not necessarily know that they have pieces, whether jewelry or fine art, that are not going to be covered on their standard Homeowners Insurance policy but should in fact be scheduled on a Personal Articles Floater,” Guasch said.

This coverage, which is typically worldwide and can include perils such as mysterious disappearance, can extend to anything from musical instruments and video games to firearms and sports memorabilia, Linton said. “There is definitely an advantage to a standalone Personal Articles Floater policy,” he said.

Homeowners purchasing High-Value Homeowners Insurance should also pay attention to contents values, which are frequently underestimated, Linton said. “Sometimes individuals reduce their contents coverage to save money on premium, but they do not always take into account everything they have acquired over the years,” he said. “There is often more value in their possessions than they think.”

Sometimes individuals reduce their contents coverage to save money on premium, but they do not always take into account everything they have acquired over the years. There is often more value in their possessions than they think.

Policy endorsements to address mold, water backup, Extended Replacement Cost, and Ordinance and Law Coverage should also be considered, as well as coverage for additional structures like fencing, docks, or guest houses, Linton said.

As coverage considerations become more complex, additional capacity is emerging to support high-value risks. Burns & Wilcox recently introduced an exclusive solution in partnership with Atain Insurance Companies, an “A” rated (Excellent by AM Best) carrier, designed for high-value homes in California, Colorado, Florida, and along the Gulf and Atlantic coasts. A separate contents-only option is also available, providing added flexibility for brokers and their clients.

Understanding flood, liability exposures

Rebuilding a high-value home after a major loss can take longer due to hard-to-source materials, increasing the cost of temporary housing and daily living expenses. These expenses can be covered by the Loss of Use component of a Homeowners Insurance policy. “If your home is unlivable due to a loss, it could take some time to bring it back to what it was,” Linton said. “If you do not have adequate Loss of Use Coverage, those additional living expenses would be coming out of your own pocket.”

Private Flood Insurance policies are also crucial, as Homeowners Insurance typically excludes flood damage and National Flood Insurance Program (NFIP) policies cap coverage at $250,000 for the structure and $100,000 for contents, Guasch said. “On a $5 million or $10 million home, $250,000 of flood coverage is not going to even cover the contractor’s work to repair damages,” he said. “Many homeowners purchase an NFIP policy and then look for Excess Flood Insurance to cover up to $1 million or more.”

As property values and personal assets increase, a homeowner’s liability exposure may also grow. Beyond the risk of lawsuits over guest injuries on a property, high-net-worth individuals often own boats, golf carts, or multiple residences that could introduce additional liability risks.

“Those are all higher-than-usual exposures,” Guasch said, pointing to Personal Umbrella Insurance as an option for obtaining higher liability limits. “A lawsuit, especially in a place like Miami, is usually not going to be hundreds of thousands of dollars — it is going to be millions of dollars.”