Barndominium Insurance 101: The Exhaustive Guide (2024)

0 Shares

Suppose you own a barndominium, also known as a barndo. In that case, you’re probably proud of your new property and realize it’s one of the most rewarding homes you can live in.

However, you also appreciate that your home costs a lot. So, it makes sense to protect your investment with suitable insurance, just like any other house.

But, what insurance should you use, and which company offers the best coverage?

It can be tough to know which company is the best and what policy to choose from, as everyone needs a different type of insurance. For example, someone who lives in a windy mountainous region with plenty of snow needs different coverage from those living in the desert.

You should consider details such as these when initially researching a few suitable insurance companies. 

In this guide, we’ll consider what to look for in barndominium insurance and what companies you should use to protect yourself, your family, your home, and your investment.

Table of Contents

What Is Barndominium Insurance?

Before we continue, it’s a good idea to clear up a few misunderstandings and get a handle on what barndominium insurance is.

Definition and Basics of Barndominium Insurance

Barndominium insurance is just like ordinary house insurance.

You pay a premium set by the insurance company, depending on what you want to cover and how much of a risk the company thinks you are. In return, the insurance policy pays you to correct anything that happens to your home, such as storm damage or flood.

Similarly, you can also buy a contents policy covering carpets, drapes, appliances, etc. Likewise, you get money to buy a new one if anything damages these.

Many owners wonder if getting insurance specifically for their barndominium is possible as they believe it is too unique for something as mundane as insurance. They would be wrong. We can buy insurance for just about anything.

Not sure where to start? Our Barndominium Zone Package can help!
The Ultimate DIY Guide & 200+ Best Barndominium Floor Plans.
Learn More

But, the secret is to know what to ask for and who to buy it from. Not every insurance provider will have a suitable policy. However, if not, we can mostly get custom-made terms tailored for our barndo.

Then, our home will be covered, and we’ll have peace of mind if anything untoward happens.

Depending on the type of insurance we buy, barndominium insurance covers the property’s structure, contents, and other special protection as needed.

We’ve already said that we can insure almost anything. But, state governments don’t make it compulsory, so many people don’t bother.

However, it’s a good idea to protect your investment, and if you have a mortgage or home loan lender involved, they will insist on coverage to protect their investment. 

You haven’t got a choice on this. It’s take it or leave it!

Why Barndominiums Need Special Insurance

Barndominiums need special insurance because they aren’t a conventional type of house.

Most barndos have structural steel skeletons and steel sidings, with their load-bearing walls incorporated within the perimeter walls. You probably already know that neither of these features is conventional, and the insurer hasn’t much experience with how much of a risk this is to your home, if any.

Therefore, they assume the worst and mark up the monthly premium to be more expensive than it should be. Furthermore, you should also know that most barndos have a dual-role classification. Or, to put it another way, one portion of the structure is residential, and another is for storage or an industry.

For example, barndos can have a secondary role as:

  • Workshops
  • Agricultural
  • Vehicle and machinery
  • Community, such as a church or meeting hall
  • Commercial
  • Retail

Dual-role always affects your premium and your coverage. Generally, calculate the ratio between living and non-living space, what is the secondary use, and specify if non-family members have access.

Knowing whether you intend to have flammable fuel storage or allow access for retail, work, or community use, the insurer can offer a more accurate premium and tailor your policy.

Key Benefits Of Barndominium Insurance

There are several benefits you should consider when insuring your barndominium. However, owners aren’t legally required to take out insurance coverage.

But, it’s a good idea to protect your investment, which will be a condition of your home loan.

Protection Against Property Damage

The main reason to insure your barndominiums is to provide funds in case of damage to your investment. Repairing or rebuilding a barndo can be a significant expense, which most homeowners can’t afford to meet.

However, many insurers will limit your claim if they decide it is avoidable or the amount necessary for compensation is too high. They may also exclude specific types of damage. For example, damage due to war or an “act of God.”

Coverage for Liability Issues

A policy providing coverage for liability issues is invaluable. Suppose someone visiting your property gets injured.

  1. This could be by accident or by animals you keep, such as livestock, horses, or dogs. This person then requires medical treatment and sends the bill to you, which could be astronomical, depending on what happened. You’ll be glad you took out the liability insurance. However, tell the insurer when you buy the policy that you keep animals and what animals you have, even if it’s only a farm cat, as cats can cause injuries with their claws when provoked.
  2. Let’s say you have friends at a pool party or barbeque. During the fun, someone gets hurt and requires medical attention. Fortunately, you took out liability insurance for just this eventuality.
  3. A customer or supplier arrives at your home and exits their truck. Unfortunately, it’s been raining, and the ground is slippery. They fall and break their arm and cannot work for six weeks. What a good idea you took out liability insurance to cover this eventuality.

These three situations could easily happen and may cost you a lot of money in medical bills and compensation.

These and plenty more issues can be alleviated by simply buying liability insurance.

Customization Options for Unique Barndominium Features

Customizing your insurance policy allows you to:

  • Build comprehensive coverage to include additional clauses not in your original barndominium insurance. 
  • Exclude those clauses that either won’t significantly affect your property or would make the premiums too expensive.

Although we don’t recommend you exclude essential items, sometimes we have no other option. To appreciate what items you need to include or exclude, read the small print in your policy to understand exactly what the current policy covers.

If necessary, get professional help for a “translation,” as sometimes legal jargon is difficult to understand.

Limitations and Exclusions 

Limitations and exclusions to your barndominium policy are a way of reducing the amount paid out in a claim. However, this also reduces the amount you pay.

For example, barndo residential policies only pay out for habitable areas of your property, disregard those used as storage, garaging, or for a business (an exclusion), or pay a proportion of the total claim (limitation).

They can also exclude or limit a claim for damage caused by a specific action. For example, suppose your location never has issues with floodwater. In that case, you can exclude this cause or limit the policy’s claim. 

See also  8 Barndominium Resale Value Factors To Consider (2024)

Additional Coverage

Where exclusions and limitations exclude items from the policy, additional coverage includes extra coverage at an additional cost.

For example, suppose you live in an earthquake region, and your standard barndominium insurance policy doesn’t mention this possible cause. In that case, you may decide it’s worth the extra cost to incorporate a clause covering your barndo against seismic damage.

Types Of Barndominium Insurance Coverage

Depending on your circumstances, you can choose from several types of barndominium insurance.

When choosing insurance, some people prefer the cheapest policy offered. Although you may save a few bucks, it may be more expensive in the end, especially if something happens and you realize the policy doesn’t cover you.

The best way to get the right insurance for your circumstances is to look at all those available and then choose based on the coverage, not the price.

Liability Insurance 

Suppose you have visitors to your barndo. They could be customers visiting your workshop. Or, they could be friends visiting for an afternoon barbecue. Whoever they are, they could be injured if you keep unpredictable animals such as horses or livestock.

Or they have hazardous areas such as a swimming pool. Perhaps you think this may never happen; don’t be fooled. 

Accidents happen; you may be out of pocket with expensive medical bills. This is where liability insurance comes into its own. A good liability policy can save you a fortune if you choose wisely. 

Homeowners Insurance 

Homeowners insurance is the minimum everyone should have. It looks after you if something happens to destroy or damage your barndominium. This could be things like floods, fires, or other disasters that can decimate your barndo.

If you don’t have coverage, and something happens, you will pay a lot to put things right.

Homeowners insurance is also there if you find your barndo unliveable. You need somewhere to live while contractors arrive to repair or rebuild your dream home, and this policy will pay for temporary accommodation and out-of-pocket expenses.

There are various types of homeowners insurance, which have different purposes:

Cash Value

Cash value insurance covers you for your barndo’s value at the time of the accident, irrespective of how much it costs to put right.

Replacement Value

Replacement value insurance covers you for completely rebuilding your barndo.

Depending on your priority and budget, choose one or the other.

Specialty Insurance

Unless your insurance company knows and understands the benefits and problems with barndominiums and has a suitable ready-made policy, you’ll probably have to buy additional coverage on top of a standard policy.

Although you might think this is a hassle, it could be worth doing if you subsequently experience problems. Usually, the best way to find specialty insurance is to speak to other barndominium owners and find out where they bought theirs.

How Barndominium Insurance Differs From Traditional Home Insurance

Even though a barndominium differs from a traditionally built home, the insurance policies are similar.

However, their differences are mainly due to the construction methods and materials.

Understanding Structural Differences

The main structural difference between barndominiums and traditional homes is the construction method.

By now, you understand that a typical barndo uses a post-frame construction method rather than a stud wall construction. But, it can also use a steel framework covered in steel sidings, a wooden frame with wooden sidings, or a mixture of many different materials.

However, the underlying distinction of a barndo is that the outer perimeter walls provide the structural strength to support the entire building. Hence, none of the interior walls are load-bearing.

Beware, as many insurance providers won’t cover structures with metal sidings, so check with their representative at the outset.

Coverage Gaps in Standard Policies

The main difference between a barndo and a standard policy is that specialized barndominium insurance covers the part of the structure not dedicated to a living area.

Furthermore, you would include those items stored in the non-residential part of the barndo. Many people keep items such as RVs, classic autos, and even light aircraft inside their barndo, which would require coverage too.

If you insured your barndo using a standard homeowners policy, you would need many exclusions and additions to the policy to cover your barndo comprehensively. And you probably still wouldn’t catch everything.

Barndominium-Specific Risks and Coverage

Barndominium insurance covers the property as a home or structure, depending on what you want from the policy. Typically, barndos are cheaper to build (and replace) than a conventional home of the same size, so the insurance will also cost less.

Furthermore, because most barndos use steel as the primary construction material, they’re inherently fireproof and don’t suffer the same issues with rot and pests as conventional houses. Therefore, they have less risk of damage from these.

In contrast, many barndos store vehicles that use flammable fuel or hold hazardous machines that can cause injury.

To add, those barndos used as a base for a small business will allow access to non-family personnel, either as employees or customers, with the added security risk that these people bring with them.

To have a fully comprehensive barndominium insurance policy, consider all these pros and cons to ensure your barndo is adequately protected.

Factors Influencing Barndominium Insurance Rates

It may be challenging to find the best barndominium insurance provider. But, even if you can’t find a company that sells barndo insurance, there are ways to reduce the cost of your policy.

Not every provider knows how to insure your barndo, and the chances are that they don’t have a ready-made policy.

However, you can ask for a custom-made plan by specifying your needs. This may cost more than a standard policy, but it’s worth it. And eventually, you’ll find a company selling barndominiums insurance and be able to change providers.

The following are a few factors that influence barndominium insurance rates.

Location and Environmental Risks

One of the most significant considerations when searching for barndominium insurance is its location.

For example, do you live in a floodplain, or are you susceptible to landslides or heavy snow? If so, you should consider buying appropriate insurance coverage for possible risks.

Furthermore, it’s not only weather-related risks you have to insure for. There’s also:

  • Your distance from the fire department
  • Whether your area is liable to vandalism or a heightened crime rate

Furthermore, some zoning regulations require the homeowner to get adequate insurance coverage. At the same time, banks and other lenders require you to have a policy to protect their investment. Even more so when you buy in a high-risk area.

Typically, different regions have unique insurance requirements, and you must comply before buying. 

Insurance premiums vary across the country depending on the different risks inherent in the area.

For example, while the average policy costs about $1,516 per year, the lowest-cost typical homeowner’s insurance policy is in Vermont, which provides moderate coverage for a 2,100 sq. ft. property at around $684 per year. 

In contrast, for the same size property in Colorado, an average policy costs $2,904 annually, the most expensive in the US. 

Note: These figures are for an average property and may differ for your barndominium.

Construction Materials and Quality

Fortunately, not everything increases insurance premiums.

A typical barndo has metal walls with metal or tile roofs, rather than wood or asphalt, and is less vulnerable to fire, pests, or rotting. Therefore, expect lower premiums for using these materials.

In contrast, fixture quality will affect the policy cost like a conventional home. For example, a marble countertop will cost more to insure than an economy Formica version.

Barndominium Size and Features

A barndominium’s size is a significant factor when writing an insurance policy.

When taking out a homeowners policy, the deciding factor is what the barndo is worth (cash value) and how much it costs to rebuild (replacement value) to its original specifications.

It makes sense that if you have a large barndo, it’ll be worth more than a small one and cost more to rebuild if anything happens.

Similarly, suppose your barndominium has complex roof designs, additions, porches, or expensive doors and windows. In that case, they cost more to rebuild than if you choose a simple design.

And, of course, the replacement value will increase if the barndo has expensive features or parts that need specialist installation.

Contents Value

As well as the structural insurance covering damage to the building, some policies protect the building’s contents. However, often, they are two separate policies. 

Everyone accumulates personal items, some more expensive than others. Typically, insurable personal contents could include:

  • Motor vehicles and bicycles
  • Electronic equipment
  • Household appliances
  • Carpets
  • Furniture
  • Personal items such as jewelry, clothes, and accessories
  • Sentimental items. However, it can be challenging to put a value on family photos or similar things.
See also  Top 17 Barndominium Builders In Hawaii (2024)

Furthermore, many people use the first floor as a garage for specialist vehicles, which you must include in the policy.

Similarly, suppose your barndo is a dual-role building. In that case, you may keep livestock or items belonging to a company or charity.

Generally, you should specify these items under another policy if you haven’t got a barndominium policy. But, even if you have one, let your insurance provider know these extra items are in the building.

Before looking for separate contents insurance or a barndo insurance policy that includes contents on the same policy, you must do a detailed inventory of your possessions with an approximate replacement price.

If the barndo is a dual-role building, make separate contents lists for the non-residential sections and who owns them. It may be that a company should take out separate coverage.

However, keeping the different policies within one insurance company will help smooth out problems if you need to claim for damage.

Your Barndo’s Age

Older properties have more chance of having structural wear and tear.

Generally, this increases the price of repair, which increases the premium.

Pets

Although you may consider this a negligible factor, some pets can cause significant damage to your property and injuries to visitors.

The insurance company will increase the premium if your pet is aggressive or destructive.

Amenities

Many homes have a trampoline, hot tub, and swimming pool available to family and visitors. You may think having one or all of these is a great idea.

But, did you consider what may happen if a visitor becomes injured using one of these hazardous amenities? Your insurance company already has and will charge an increased premium.

Barndominium Insurance Provider List

Although there are insurance companies prepared to sell coverage for your barndo, not every company provides a specialist barndominium policy.

Usually, the best way to find good coverage is to use a local insurance broker, which the bank or lender that provided your barndo’s funding may recommend.

Barndo Insurance Providers

  1. Germania Insurance specializes in barndominiums and other rural property insurance. Email:  info@GermaniaInsurance.com  Phone: 800-392-2202
  2. Wise Insurance Group provides unique policies to protect your barndo. Address: P.O. Box 600403, Dallas, Texas 75360. Phone: 469-464-5740
  3. Texas Farm Bureau specializes in farm and other agricultural insurance. Address: P.O. Box 2689 Waco, Texas 76702-2689. Phone: 254-772-3030
  4. State Farm, based in Illinois,  deals with all types of insurance, including homeowner policies. Address: State Farm Insurance, One State Farm Plaza. Bloomington, IL 61710. Phone: 800-782-8332
  5. USAA is a general insurance company offering many different types, such as health, retirement, auto, etc. Their homeowner policy includes the structure, contents, personal liability, and loss of use. Address: USAA, 9800 Fredericksburg Rd. San Antonio, TX 78288.  Phone: 800-531-USAA (8722)
  6. Indiana Farmers Insurance is an agricultural insurance company specializing in everything for a farm. Address: 10 West 106th Street, Indianapolis, IN 46290. Phone: 800-477-1660
  7. Allstate home insurance provider covers the dwelling, liability, personal property, and guest medical insurance. They have agents serving the entire country, and the best way to contact them is using their website agent locator.
  8. Herring Insurance is an agency based in Texas that can find the best policy provider for your barndominium and its contents. Address: W 2921 Interstate 40 Suite 700, Amarillo, TX 79109. Phone: 806-355-6596
Request a Free Barndominium Financing Quote

Request a Free Barndominium Financing Quote

Step 1 : Are you building or buying a Barndo?

In Partnership With
Barndominium Finance

0% Complete
1 of 4

How To Choose The Right Barndominium Insurance Provider

The key to finding a reputable barndominium insurance company is to chat with their representative or adviser before purchasing.

Many people still don’t know what a barndominium is or may know it under a different name. So, be prepared to explain the concept and how they’re built or mention another word like post-frame construction, barn home, Shome, or Shouse.

Once you’ve gotten past that hurdle, you can decide whether the insurance provider is right for you.

Many insurance providers sell a policy just like a standard conventional homeowners policy but with several exclusions or additions. These may include:

  • Not insuring homes with metal roofs or sidings, so explain its building method. 
  • Not insuring buildings that house livestock or garage vehicles. 

Explaining its purpose and idiosyncrasies may help you get the best insurance or save a lot of wasted time.

When shopping for barndo insurance, decide beforehand the coverage you want and what you don’t want. Don’t be coerced into buying something you don’t need or want.

Generally, the best way to do this is to choose a provider who understands barndominiums and their issues.

Consider the following points when searching for the right barndo insurance provider:

Your Location

Home insurance premiums vary across the country, state by state, and even down to the zip code. Typically, they’re based on the number of claims in the area.

Here are some of the reasons that affect the insurance premiums:

  • Areas with a history of devastating and damaging weather events such as hurricanes, tornados, flooding, or hail.
  • Your homeowner policy may be adversely affected if you live in an area with high crime rates involving break-ins or vandalism.
  • It’s essential to have accessibility for firefighters. If your home is within one mile of a fire station, your premiums will often be cheaper than otherwise. Therefore, assume that policy premiums become more expensive the farther away from a fire station you are.

Property Features

As expected, the floor area, construction materials, safety features, and security installations affect your homeowner’s policy.

Many insurance providers offer discounts if you have a home security installation or impact-resistant roof.

Researching Reputable Insurance Companies

It’s important to use reputable insurance companies with financial security that promptly respond to a customer’s claim.

Therefore, take some time to research insurance companies and build up a shortlist using companies with a suitable history.

Comparing Coverage and Rates

Every policy’s premium is unique and depends on your circumstances and the factors affecting the property.

Therefore, compare quotes for the same property from several insurers to help determine which is the best policy for you. But don’t forget to read the small print.

Read Reviews and Testimonials

Many third-party rating sites compare and review home insurance providers.

Consider comparing insurers’ JD Power rating for customer satisfaction. JD Power is a consumer data and analytics company operating since before the 1970s.

Furthermore, an insurance company’s financial stability indicates its ability to pay customers’ claims. Two third-party companies to review are Standard & Poor and AM Best.

Tips To Lower Your Barndominium Insurance Costs

When you buy a policy for your barndo, insurance companies look at many factors to determine how much to sell it for.

Although there are factors you can’t alter, like the year it was built, there are also factors you can change to reduce the cost.

Dwelling Coverage Limit

By specifying a limit to your claim, you let the provider know you won’t expect more than a specific limit when repairing or rebuilding your home.

Furthermore, you can specify a cash or replacement value policy limit. Although a replacement value policy will be more expensive, it guarantees that your claim limit won’t reduce as the building ages and loses value.

Claims History

All insurance companies look at your claims history to decide how likely you are to claim in the future. If you’ve previously made several claims, the premium will increase.

Don’t think you can lie on your application form. Insurance companies share your claims history to help each other decide on the risk.

Personal Liability Limit

Usually, the standard liability coverage limit starts at around $100,000.

Increasing this limit will increase the cost of your policy.

Personal Property Limit

The usual insurance limit for personal property is 20%-50% of your dwelling coverage limit. This is because the size of your property determines how many belongings you own and their value.

However, the premium will increase if you have costly items like jewelry and wish to increase this limit.

Credit Score

As you’d expect, insurance companies also look at your credit score. They believe a good score indicates financial stability, so you won’t unnecessarily claim.

Often, the companies may reward you with significantly lower rates.

Deductibles

A deductible is the amount you pay out of pocket before the insurance company pays your claim. It’s your share of the costs.

If you want to decrease the premium, increase the deductible, which lowers how much the policy pays out.

Implementing Safety Measures

Improving your home such as strengthening the roof, updating doors and windows, or installing a security system, may lower the policy’s cost. In contrast, increasing the area of your barndo will raise the price.

If your barndo is made from steel, and most of them are, this will significantly reduce the policy’s cost. Not only because it’s harder to break in to steal your belongings, but also because steel is inherently fireproof and much harder to damage.

See also  Top 14 Barndominium Builders In West Virginia (For 2024)

Bundle Insurance Policies

Bundling several insurance policies together with the same provider can make a difference.

Multi-policy discounts can often make a substantial difference to the overall cost.

Opt for Annual Payments

Many people pay for their insurance using monthly payments. Usually, this arrangement is more affordable for policyholders as it allows them to budget a smaller amount every month.

However, they pay a few dollars more for the privilege. Hence, the overall annual payment using monthly payments always ends up more than paying once a year.

Paying your insurance premium annually will save you a significant amount.

Barndominium Insurance Claim Process

If you have problems with your barndominium, resulting in damage. It’s time to claim on your policy.

First, decide how much the repairs cost. If a repair costs less than the policy’s deductibles, consider paying it out of your pocket without claiming.

Then, the insurer won’t increase your insurance rates or drop you when the policy next comes up for renewal.

Steps to File a Claim

The following steps describe how to make a homeowners insurance claim:

  • Notify your insurance company as soon after the event as you can.
  • Complete and submit the claim forms before the deadline set by your insurer.
  • Document the claim using photos, video footage, and witness statements. Then, list everything damaged with its approximate cost.

Documentation and Evidence

Documentation

It’s essential to read the documentation provided by your insurance provider and comply with any company rules and state regulations.

This can include the types of evidence required, the submission method (email, online browser, or by letter), and the claim’s submission deadline.

Evidence

When compiling the evidence and completing the form, pay attention to detail. Typically, you must provide the following information:

  • Time and date of the event. If you can’t give the exact time, get as close as possible or provide a time range, for example, “Between 2 a.m. and 4 a.m. on May 4th, 2023,” or something similar. If the provider specifies a particular format, you must follow their instructions.
  • When completing the form, specify everything in the smallest detail. Otherwise, you may not be reimbursed for something you’ve glossed over. Generally, the more information you give, the easier it is to receive payment. Similarly, the larger the claim is, the more critical every piece of information becomes.
  • Take as many photographs and video footage of the damage as possible. Include photos of damage to your possessions. 
  • Be prepared for the insurer to send an insurance adjuster to inspect the damage and estimate the repair costs. Although every state has rules that specify deadlines for submitting the claim and for the insurer to respond and pay out a claim, the amount of time can vary. It may happen the next day or take a couple of weeks, depending on how busy the company is.

Potential Challenges and Solutions

Because making an insurance claim is something that most people do only once or twice in their lifetime, it’s easy to make mistakes and not supply the total evidence. 

Inventory

Suppose you had a fire, and most of your belongings were destroyed or burnt beyond recognition. How will you explain the damage to the insurers?

So, make a complete inventory of your belongings and take photos of each item, its purchase price, and when you bought it. And most importantly, keep this updated and store it safely away from any possible flood or fire damage.

If you can access cloud storage, keep a backup copy and a printed copy somewhere else, perhaps safe with a family member or lodged with your attorney.

Under Insuring

One of the biggest problems with buying insurance is not purchasing enough. People often make the mistake of shopping for its price only.

For example, you might know the cost of buying a new carpet. But, do you know the cost of installation and delivery? All these costs are relevant.

Another thing to consider is the quality of your domestic fixtures and fittings. Granite countertops cost significantly more to buy and install than laminates.

Also – and this is where photos and documentary provenance come into their own – what if you had expensive works of art hanging in your living room? Photos, receipts, or valuations from qualified auction houses go a long way to providing the evidence you need.

Multiple Insurers

Suppose your home suffers a major storm with wind and flood damage. Let us also suppose that one insurance company covers wind damage. In contrast, another company covers flood damage.

Considering the total damage, it’s often difficult to determine whether the underlying cause was flood or wind and what proportion of each. Your two insurers will try to lay the cost on the other, and it may take a long time to sort out, maybe years.

So, it’s a good idea to stick with one insurer for all your household insurance. 

Disputes

Finally, remember that your insurance provider runs a business and doesn’t want to pay you more than necessary.

So, if you think they are undervaluing your claim, don’t be afraid to dispute their valuation and try to get as much compensation as possible.

Common Myths About Barndominium Insurance

There are many common misconceptions about insuring a barndominium, and these worry the average homeowner.

Let’s look at a few myths and decide on the truth.

Myth vs. Reality: Setting the Record Straight

Myth: You can’t insure a barndominium.

Fact: You can insure a barndominium just like any other home.

However, you may need a particular insurance policy to account for all the differences between a conventional home and a barndo.

Myth: A barndo is a dual-role property, so it’s impossible to insure.

Fact: Firstly, not every barndo is a dual-role property. Many are single-role, like a regular house. If this is the case, then this makes finding a policy much easier.

However, if the barndo is dual, it’s usually mainly residential with various secondary roles. For example:

  • Workshops
  • Vehicle and machinery storage
  • Agricultural space, etc.

If this is the case, then you need a different insurance policy, one that takes into account the secondary use.

However, many insurers already have this covered and call the policy “Barndominium Insurance.”

Myth: If you have a dual-role barndominium, you pay commercial insurance for the entire property.

Fact: If you own a barndo that is part residential and part commercial, you only pay commercial insurance on those parts which are not residential.

However, if you’re handling potentially hazardous equipment or materials, you may also pay more for residential insurance.

Myth: The condition of your barndominium doesn’t matter. After all, it’s made from steel.

Fact: Specific features of your barndo can affect your insurance premiums.

Similarly, suppose your barndo is in poor condition. In that case, you’re more likely to pay higher premiums irrespective of its material.

Understanding Exclusions and Limitations

These are two words that many people see but don’t understand the difference.

Exclusions

Exclusions are procedures or conditions of an insurance policy that the insurer excludes from the insurance and refuses to cover.

An example could be if your barndo sits in a flood plain that regularly floods, the insurer will refuse to cover you for damage caused by floodwater.

Limitations

Limitations are procedures or conditions covered under your insurance policy but paid out lower than necessary.

Typically, suppose you live in a hurricane zone. In that case, the policy may specify a maximum claim for damage caused by the extreme wind.

Future Trends In Barndominium Insurance

Barndominium living is still in its infancy.

Many insurance companies haven’t caught up with the changes they must make to their policies to stay competitive.

Predicted Industry Changes

More insurance companies will understand the concept behind barndominium living and design insurance products, especially for this market.

Only a handful of companies currently have “barndominium insurance,” incorporating everything a barndo owner requires.

In comparison, most insurers continue to force barndo owners to buy a policy designed for a conventional home and expect them to accept specific exclusions or limitations.

Alternatively, they ask that the homeowner “mix and match” particular insurance policies to accommodate their property, often at an unnecessarily higher premium than a conventional home.

New Coverage Options and Products

Insurers could do several things to benefit their barndominium-owning customers:

  • Design products specifically for barndominiums. 
  • Provide discounts for barndominium owners based on the durability, increased security, and structural strength of a typical barndo.

Evolving Barndominium Designs and Their Impact on Insurance

Bardominium designs are still in their infancy. Although their visual appearance won’t veer from an American agricultural building, the materials will continue improving.

Construction technology is constantly improving, and we will find new materials to replace more traditional, expensive ones.

Therefore, barndominium insurers must take on board these new developments and build into their policies the ability to change their underwriting mechanisms to insure the new materials that reduce the chance of a customer claim.

Furthermore, they must be willing to pass on these improvements to their customers through more affordable policy premiums and better overall policy terms and conditions, with fewer exclusions and limitations.

What Next?

Choosing the right insurance for your barndominium is essential to protect your most significant investment.

Buying a suitable insurance policy that covers your property in every situation provides peace of mind that you will always be able to repair or rebuild your dream barndo. 

Remember to ask for multiple quotes from various insurance companies and their agents when searching for a good policy.

Try to decrease your premiums as well by making repairs and improving your barndo’s condition so the assessor knows you’re looking after it, install home security systems, and raise your credit score.

You may believe your home doesn’t need insurance and is a wasted expense. This belief, of course, is up to you, and you’re entitled to your opinion.

But accidents happen daily, and for a relatively small monthly or annual payment, you can insure your home against anything. 

So, are you ready to find a barndominium insurance company? 

Don’t delay: get some insurance today.

=> Looking for a custom Barndominium floor plan? Click here to fill out our form, a member of our team will be in touch.

Get Your FREE: Barndominium Floor Plan Package Now
Download our FREE barndo floor plan package for inspiration and ideas.
Get FREE Barndo Floor Plans
0 Shares

Leave a Comment