Have you decided to buy that second home? Are you settled in on buying a luxury home? If you are committed to a luxury home here is a tip for you that can spare you a rude surprise.

If you've never bought a luxury home before something you want to think about is the insurance. When you get into the luxury class of homes you enter a different insurance world than the one you might be asscustomed to.

You should know too that the 'standard' homeowners insurance policy isn't usually adequate for a luxury home. The reason is that the standard policy is designed for the average house and it is not likely to provide actual replacement cost for the luxury home. When looking for an insurance policy on a luxury home search for a policy that insures 'all peril' instead of just 'named peril'.

Needless to say its best to get proposals from at least three different companies so you can compare and contrast the terms and the costs.