Your wait is finally over! You have chosen a location, the log cabin is thoroughly planned, and the raw materials are on the way. After months of planning and designing, your dream of a log cabin is turning into a reality. However, you must ensure an insurance policy covers your dream home. Many homeowners complain that they cannot find insurance companies for their log homes. The minute they say ‘log,’ the insurance companies say ‘no.’ Most insurance agents decline to insure a log home as they do not want to deal with additional work as it is problematic to determine the replacement costs. However, if you get tiny log cabins for sale that are professionally built or manufactured by an established builder – then the going gets easy. Even contacting an independent agent to insure a log home is easier than asking an insurance company to get your home insured. Independent agents can work harder and find a policy that works perfectly for the log home.
Types of Insurance
There are numerous kinds of cabin insurance that you should consider. Here is the breakdown:
Land or property insurance
Land insurance is optional, as little can go wrong with the property. However, if you are buying property in a high-risk area that’s prone to fire outbreaks or where people go on a hike and do not keep off your land, then liability insurance is necessary.
Builders Risk Insurance
This one is standard for all construction projects. It covers the log cabins and all the other contents. This insurance will cover everything on the job site, such as building materials and partially built structures. In addition, this insurance covers the structure and materials from damage, theft, fire, weather, and vandalism. The insurance premiums are reasonable as the companies do not cover the full cost of the finished cabin.
The log home construction loans need you to have Builders Risk Insurance. Insurance providers insure a log home kit and provide the materials from the point of delivery till the log cabin project is fully accomplished. At that junction, they will provide you with a homeowners policy after you have obtained the certificate for occupancy from the local building department.
Mortgage Insurance
Your cabin with a mortgage needs to be covered with an insurance policy to protect the investment. The insurance by a mortgage company offers elementary coverage for log home protection.
Worker’s compensation, liability, and disability benefits
The contractor of the project carries on this type of coverage, and you must check the copies before starting the work. If you are functioning as your general contractor (to save money), you will need to obtain these coverages to decrease the risk. These coverages are different and separate from Builder’s Risk, as discussed above.
Log Homeowners Insurance
Once the home is built, a homeowner’s insurance is essential to cover the cost of the log home and the contents. You can save money by not counting land in home valuation, as land doesn’t carry a similar risk of damage like theft and fire. Moreover, liability insurance is necessary for protecting someone from injury inside the log home.
Flood Insurance
It is a must if you live in a flood zone, but most homeowners’ policies don’t cover flood damage. Instead, you will be required to purchase flood insurance via an agent or get the insurance through the National Flood Insurance Program (NFIP). To get more information, you can visit www.fema.gov/nfip/.
Where to buy the log home insurance?
People report that they have trouble finding insurance for the log cabins. Many people claim that they have been denied coverage by insurance companies and need to find an independent agent to get the insurance from the original company that otherwise didn’t want to cover them. Log cabin insurances are available, and you need to check different coverage carriers to compare rates and your experience level. A knowledgeable agent or a trusted insurance company should be writing the insurance policy of the log home. TinyHouseMe can help you get insurance and connect you with builders offering tiny log cabins for sale.
Factors that affect log cabin insurance
Here are a few things that can increase or decrease the insurance premiums of a log cabin.
- Distance from a fire hydrant and fire department – The insurance is inexpensive when you are nearby a fire department. The further away you are, getting the emergency services to respond is more challenging than ever. However, the insurance cost is quite debatable depending on the log thickness used for building the cabins. A few insurance companies will require your home to be located within a certain distance from the nearby fire hydrant.
- Roofing materials – Wood shingle roofs increase the insurance premium as they aren’t fire resistant.
- Log Thickness – Insurance companies will offer a good discount when you build homes with thicker logs. Many agencies offer discounts when the log thickness is over 8 inches in diameter as they are more resistant to fires, tornadoes, and hurricanes. Cabins made with larger logs are more fire-resistant. The handcrafted ones from raw lumber have higher replacement costs, affecting insurance.
- Foundation – If the log cabins don’t sit on a solid foundation, then insurers will refuse claims involving subsidence and landslide. Again, the higher the value of the log cabin, the more you need to spend on insurance, but this may vary from state to state.
Things that are not covered by the insurance
- Damage due to lack of maintenance
- Damage from domestic animals
- Wood rot
- Rat, mice, bats, insects, bees, termites, and vermin infestation
- Damages by sewer backup inside a finished basement
- Loss of home due to nuclear warfare
Final Words
To learn more about insurance, you can connect with builders offering tiny log cabins for sale. Now connect with multiple home builders under one platform. TinyHouseMe offers you the privilege of connecting with several log home builders across US and Canada. Come to TinyHouseMe to book an appointment with your matched builder. Then, join the platform to get helpful resources in planning, financing, and insurance for the tiny home project.
