Non-Standard Construction House Insurance

I want to build a nontraditional home. How should I get it insured?

By Renée Benoit
Updated on July 3, 2024
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by Adobestock/Michael O'Keene
Ensure your home plans adhere to local zoning and are up to code.

Research construction methods and consider non-standard construction house insurance before building your dream home to make the insurance process easier and less costly.

Years ago, my husband and I had a hankering to build a straw bale home to live in. So, we did a lot of research, and along the way, we encountered many hurdles, meaning we’re well-versed in what you’ll experience when you try to insure a non-standard construction home.

Start by researching the type of construction you’re considering, whether that’s straw bale, shipping container, rammed earth, or an underground home. Read up on whether it’s suitable for your climate and how much it’ll cost, and whether your property is zoned for this type of dwelling. For the latter, talk to your county planners. Finally, decide whether you’re going to build it yourself or have someone else build it, which will influence your insurance decisions.

Non-Standard Construction House Insurance

Unfortunately, most major carriers don’t write policies for homes with non-standard construction. If you ask your insurance agent, they likely won’t underwrite it themselves but may agree to act as a broker to find a carrier that can quote it. According to Green Home Building, you may also have some luck searching for insurance agencies that market themselves as “earth-friendly” or agencies located in areas with a higher concentration of such homes. Policies for non-standard construction methods can cost 2 to 3 times more than a standard home, and can take longer to underwrite than homes using traditional construction methods.

Take extra precautions if you decide to build it yourself; don’t cut corners or build without permits. It’ll help immensely if you’re versed in non-standard construction. To make the insurance process easier and less costly, however, hire a licensed builder who offers plans approved by an engineer. The underwriters will want to know that what they’re insuring is up to code and won’t fall down, burn up, or wash away. Plus, a licensed contractor versed in non-standard construction may know how to get it insured.

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