Privilege Underwriters Reciprocal Exchange (PURE) is going to offer property-casualty insurance coverage for owners of high-value homes in New York.

Ross Buchmueller

“PURE recognizes that homeowners today are seeking smarter financial alternatives and access to the right insurance coverage, and as a specialist insurer that carefully selects its members and runs the company for its members’ benefit, PURE can meet those needs and provide significant insurance savings, higher quality coverage and superior service,” said Ross Buchmueller, president and chief executive officer with White Plains, N.Y.-based PURE Risk Management, in a statement. “By providing customized coverage options and not imposing mandatory hurricane deductibles, PURE will provide cost-effective flexibility not easily found in today’s New York insurance market.”

Buchmueller added that he hoped the policies would “appeal to owners of high-value homes, particularly in New York’s downstate counties and especially in Long Island.”

The company anticipates additional expansion in the U.S., but did not specify where or when.

The company expects to provide at least a 25% reduction in premium costs compared to the state’s largest insurer of high-value homes, it said. In 2007, PURE’s members in Florida reported average savings of $4,700 on their annual insurance premiums. In 2008, when the company expanded to South Carolina, its members in that market reported average annual savings of $2,700.

Company officials said benefits it offers in its policies include up to $10,000 for money stolen from a home safe; up to $2,500 to help prevent large losses from recurring and to control the long-term cost of risk; and coverage for luxury condominium and cooperative units in New York City with personal property limits of $1 million or greater. PURE will pay up to $25,000 for damage caused to a neighboring unit, even if the PURE member is not legally liable.

Other features of its policies include flexible coverage limits and options for deductibles, and coverage for the cost to rebuild or replace damaged property with environmentally friendly materials or appliances.

“We are excited for the opportunity to introduce PURE’s unique solutions to families on the East End, and we believe our clients will love the idea of an insurer with excellent financial strength that manages its business for the benefit of its policyholders,” said Chris McDonald in a statement. He is a principal with Amaden Gay Agencies in East Hampton, N.Y., an independent insurance agency that specializes in personal insurance for high-net-worth individuals and families.

As a reciprocal insurance exchange, PURE is member-owned. Members pay a surplus contribution of 10% of their high-value homeowners’ premium and 4% of their premium for all other policies, for each of the first five years of membership. PURE and the PURE Group of Insurance Companies serve more than 3,200 members.

PURE has been awarded licenses in New Jersey and Connecticut and is now accepting new members in those states.