Table of Content
“The more a home costs, the more expensive insurance will be,” Alexander says. Often, people purchase land with the hope of one day building a log home on the property. As a property owner, you don’t need to be overly concerned about insurance. Of course, you could take out a liability policy that would protect you in case someone was hurt on your property, says Alexander Sarno, president of the Log Home Agency.
The fact of the matter is… log homes are more expensive to insure for a number of reasons. After the home is built, our annual homeowner’s insurance rate would be pretty much the same, less the “builder’s risk” part… a savings of about $150 a year. Learn what type of insurance you'll need to cover your log home from construction to completion.
Oquien Bradley: Allstate Insurance
Council members have agreed to a set of membership requirements that offer safe guards to homeowners during the buying and building process. Also, he notes that homes built with 8-inch or larger logs may be better able to withstand windstorms, tornadoes and hurricanes. Generally, insurance companies are wary of homes with wood shake roofs. “There’s a pride of ownership that leads to impeccable housekeeping and maintenance,” he says. His agency does offer a discount for home owners who build their homes with logs that are 8 inches in diameter or larger. With the heavy timbers found in log walls, he explains, fire tends to smolder instead of bursting into flames, allowing for a longer response time from fire officials.
With construction behind you, you’ll need to begin regular home owner’s insurance on your new log home. For years, one of the common myths about log homes was that they were difficult to insure. Today, knowledgeable insurers understand the choice to use log construction should have little impact on a home owner’s ability to obtain insurance.
GEICO, Allstate, State Farm, American Family, and American Family
Often, log homes are built in rural areas far away from fire stations and surrounded by woods. This factor puts them at greater risk of fire damage and turns most homeowners insurance companies away from the idea of covering your house. Because log cabin owners spend most of their time in their log home, they should have a large enough down payment to eliminate the need for PMI. Private mortgage insurance, or PMI, is not required for log homes, but it is highly recommended for new homeowners.
This will again drive up the cost of the home and most importantly, the cost to rebuild. The cost to rebuild is a big factor in the decision-making process for insurance companies. If the company sees that a home would cost a great amount to repair or rebuild, they will up their premiums or even refuse to insure the home at all.
Home Insurance Tips
You may want to consider taking out additional policies to cover yourself in case of someone getting injured at your home or to cover the more expensive valuable items. You will also need to ensure that builders or contractors have insurance to cover themselves and their staff; I would recommend that you ask to see proof of their insurance. It goes without saying that the higher the value of your cabin, the more it will cost to insure, and this will vary in different states and countries. Wood shingle roofs are probably going to increase your insurance premium because “They’re not as good a fire risk,” Alexander Sarno – president of the Log Home Agency. Discover which path is right for you when making your dream log or timber home a reality. Whether you are building or presently own a Log Dwelling, we know what’s involved when you talk about insuring your Log Home.
However, if done correctly, it can reduce the cost of restoration in the future. The best way to extend the life of a log home’s stain is to follow the instructions of the professional restoring it. Make sure you only take out insurance cover for what you need to be covered for; this may bring your premiums down. Before applying for log cabin insurance, make sure your home is as secure as it can be. Ensure that you have a burglar alarm fitted and that all doors and windows have locks fitted.
BUSINESS SERVICES
Most homeowner’s insurance policies don’t cover flood damage, so you’ll have to buy a separate policy for your log cabin. Additionally, a log home can be a seasonal home – so it’s advisable to shop around for a policy each year to ensure you’re getting the best value for your money. While some insurance companies won’t cover a log home, it’s still possible to find a log home insurer.
All other marks contained herein are the property of their respective owners. And, the log home is out in the country where the nearest fire station is 7 miles away.
Log homes may also need repairs, and some insurance companies do not cover them at all. In order to get the best coverage possible, you should be prepared to pay more money up front. If you’re building it yourself, you’ll be likely to know whether it has solid foundations or not. This could prove problematic, however; insurers will most likely still cover you but refuse claims involving landslide and subsidence. Many log cabins are typically made from large logs, this usually means they are fire-resistant BUT if they are handcrafted from raw lumber, the replacement costs are likely to be high.
Because log and timber homes are a niche market, you should shop carefully for a policy that meets your needs. Here are come common questions and answers to ensure you are an educated insurance shopper. Fortunately, in the grand scheme of things, the cost of insurance is a bargain compared to what it provides — peace of mind that your home will be made new again if it is damaged or destroyed. That same kind of peace of mind comes standard when you buy from a member of the Log and Timber Homes Council.
While many companies don’t offer log home insurance, you can look for small insurance companies that specialize in this type of insurance. If you find a company that doesn’t specialize in log homes, make sure to research their policies carefully before signing up with them. Your home insurance is likely to be less expensive if you are within easy reach of a fire department.
Log cabins are generally a higher risk to insure than typical homes, so you’ll want to compare rates with these different insurers. GEICO, Allstate, State Farm, and American Family insurance companies all cover log homes. However, you’ll have to be upfront with your insurance agent about the additional cost of building a log cabin. If you don’t declare it, the insurance company will cancel the policy and charge you more money. Log home owners should also consider purchasing a separate flood insurance policy.
No comments:
Post a Comment