Building a barndominium is one of the best ways to build your own custom home if you are on a budget. However, some things come with a project like this that are just like building a traditional home. One of the things you will have to consider to protect yourself and your home is barndominium insurance.
Many people wonder if it is possible to get barndominium insurance since they are so unique. While it is entirely possible, there are certain restrictions and considerations you will have to make. Getting the right policy will depend heavily on how much you know about the process and how prepared you are.
What is a Barndominium?
A barndominium is a custom home that is built with a post frame building or pole barn structure. These structures are usually reserved for agricultural purposes like barns, stables, and warehouses. However, with some unique design choices, they can also be turned into amazing custom homes.
Barndominiums have many advantages over traditional houses. They are very durable due to their steel construction and concrete slab foundations, as well as their steel frames. They are also cheaper than a traditional home, which makes them much more accessible.
Where to Get Barndominium Insurance
The biggest issue with getting barndominium insurance is the fact that many insurance companies won’t cover them. This is largely because a lot of providers don’t offer policies for buildings with metal siding. While this puts you at a disadvantage, you can still find companies that will cover your building.
One of the things you can do to get the right policy for your barndo is to ask other barndominium owners. Working with an insurance agent who has covered homes like yours in the past will help you find the right policy. They will have recommendations for policies and insight into how you can best protect yourself.
What Does Barndominium Insurance Cover?
Interior and Exterior
Once you find a policy for your barndominium, it is important to know what the insurance will cover. Generally, most insurance companies will offer coverage for the interior and exterior. This means that the actual structure of the home will be protected from damage and devaluation.
This aspect of your barndominium insurance will cover the interior and exterior structure from things like electrical issues, deterioration, and weather. These types of policies will also often cover alternative accommodations if your home is damaged. This will help you and your family be comfortable and cared for if your home becomes unlivable while it is being prepared.
Content coverage is another important thing that you should make sure your barndominium insurance has. This type of coverage will protect the actual items inside your home. This includes things like appliances, furniture, electronics, and more.
Content coverage will also usually cover you in the event that a third party is injured inside your barndo. This is incredibly important because you are usually liable for someone’s injuries or medical bills if something happens in your home. No matter what, you must protect yourself from any liability when someone is in your barndominium.
What Doesn’t Barndominium Insurance Cover?
The various things that your barndominium insurance will cover or not cover will depend on your policy. However, there are a few items that you can almost always count on not being covered in your barndominium insurance policy. These are usually not specific to barndominiums but also traditional homes.
For the most part, barndominium insurance will not cover Acts of God or Acts of War. These things usually include issues like hurricanes and tornadoes. If you are building in an area that has these weather patterns, you may have to pay extra to have coverage for these instances.
Barndominium Insurance Types
Actual Cash Value
There are different types of barndominium insurance that you can get for your home depending on your budget. The most affordable type of barndominium insurance is called actual cash value insurance. This type will cover the interior and exterior of your home as well as the items inside the home at the value they were at before the damage occurred.
This type of insurance is generally the most basic and will be fine if your barndominium is a second home. However, if your barndo is built to be a home that you live in for the rest of your life, you may want better coverage. Making sure you are covered for the long haul is incredibly important in this type of situation.
Extended value insurance is a type that will cover much more of the process of rebuilding your barndo. If something happens like a fire, hurricane, or earthquake and your home is destroyed, this insurance will come in handy. Rather than covering the cost of the items at face value, it covers the entirety of the rebuilding process.
This kind of insurance is important because if you want to keep your home in good shape, it can help. Extended value insurance will also often cover routine repairs that need to happen regularly. If you want the absolute best protection, you should make sure that you have high-quality barndominium insurance.
How Much Does Barndominium Insurance Cost?
It is difficult to pin down exactly how much your specific barndominium insurance will cost. The price of an insurance policy will vary greatly and depend heavily on your specific situation. Insurance companies determine rates based on things like your insurance history, the area you are building in, and what the weather is like.
Your history with insurance in the past will have a large effect on how much your barndominium insurance will be. If you have had major insurance payouts in the past, you may have to pay a higher premium. This type of history represents a higher risk to the insurance companies, so your premiums will be much higher.
What to Look for in Barndominium Insurance
When shopping for barndominium insurance, only you can really know what you need. An insurance agent who is experienced with this type of home will be able to give you help choosing a policy. They will ask you about things like your needs and where you are building and will work with you to find the right coverage.
If it is at all possible, get the most expensive barndominium insurance you can find. While it may be a bit of a hit financially, you will be glad you did in the event of a catastrophic emergency. Protecting yourself is well worth the cost of entry for the right policy.
If you are ready to start building the barndo of your dreams, check out our barndominium floor plans to help you create the barndominium of your dreams or use a barndominium design software program to help you plan out your space for your new home. When in the planning stages, be sure you also check out the barndominium financing and insurance options that are available. For more helpful tips, visit our FAQ barndominium section to get answers to all your barndo questions.