Special Insurance Considerations for Special Homes

Most homeowners are required to carry insurance if their home is being financed through a mortgage. This insurance helps protect the lender’s investment from natural disasters such as fire, weather events, theft, and more. Responsible homeowners will carry this coverage even if there’s no mortgage. Typical homeowners’ insurance offers standard coverage limits that apply to homes that meet specific criteria. Homes that are owned for business purposes often come with features or uses that aren’t covered under typical policies.

Understanding the Need for Special Coverage

The following residential properties require special property coverage:

  • Homes with a value of over $750,000
  • Coastal homes
  • Houses with underground tanks
  • Residences owned by an LLC or estate
  • Frame-construction properties
  • Vacation homes, or homes that are vacant for a part of the year
  • Homes used for daycare businesses

According to experts on coastal home insurance, these homes include elements that some insurers won’t underwrite using a standard property insurance policy. 

Taking Care of Home

Property insurance is a form of risk management, so certain home characteristics do increase your risk of damage and loss, such as proximity to large bodies of water, and high replacement costs. You owe it to your business to protect your investments from threats of disaster and damage with special property insurance.