help...Property Ins. / Vacant Property

[9973720wb19]

Need insurance advise with farmland we own about a mile away from our home.

The property is farmed by a farmer to bail hay, there is a nice old large barn on the property we just had restored. we have liability insurance (which costs about 1k per year) but now sought property insurance for the barn.

Though someone is at the property at least once a week during the winter and several times a week during the growing season, from an insurance prospective, the property is deemed "vacant" since no one lives on the property.

I asked for a high deducible of $5,000 and $750,000 if building is destroyed. Assuming I'd pay for a broken window or some minor damage up to 5k that could happen, I wanted to get the barn insured in the event it burned down or sustained major damage. at least I get my money back for the restoration. However, the annual premium to add property insurance (only - not including liability) is $6,800 per year. We tried to lower the limit to $500,000, but the premium only came down a few hundred per year.

there are no animals at the property, no electric or plumbing to the barn...

Does anyone have any advise on how to secure property insurance for vacant property at an affordable price?

thanks

 

[aczlan]

What kind of insurance agent are you working with? You want one that specializes in commercial and or Farm policies, not in homeowners policies.

Aaron Z

 

[Fuddy1952]

Shop around.
What would it cost to replace barn if it was a total loss? It may be $500k...but maybe a $200k barn would suffice. Only you know that.
Insurance companies vary a lot with premiums. A liability umbrella may not be bad idea either, covering everything you have, cars, house, land.

 

[japody]

In what state is the property?

 

[oosik]

I would DEFINITELY get estimates from half a dozen other companies. As ACZIAN says - get with companies dealing with farm and commercial properties.

I have all vehicles, properties, & home covered by State Farm. Needed insurance for my new motorcycle. State Farm agent said - "we don't normally insure motorcycles & when we do - its excessively expensive. Try Allstate". Allstate has good coverage at reasonable rates. Pays to shop.

Also, nice to have an honest agent.

 

[MossRoad]

Need insurance advise with farmland we own about a mile away from our home.

The property is farmed by a farmer to bail hay, there is a nice old large barn on the property we just had restored. we have liability insurance (which costs about 1k per year) but now sought property insurance for the barn.

Though someone is at the property at least once a week during the winter and several times a week during the growing season, from an insurance prospective, the property is deemed "vacant" since no one lives on the property.

I asked for a high deducible of $5,000 and $750,000 if building is destroyed. Assuming I'd pay for a broken window or some minor damage up to 5k that could happen, I wanted to get the barn insured in the event it burned down or sustained major damage. at least I get my money back for the restoration. However, the annual premium to add property insurance (only - not including liability) is $6,800 per year. We tried to lower the limit to $500,000, but the premium only came down a few hundred per year.

there are no animals at the property, no electric or plumbing to the barn...

Does anyone have any advise on how to secure property insurance for vacant property at an affordable price?

thanks

How much does homeowner's replacement insurance cost on a $750,000 house?

I wouldn't know, as our house is worth around $100,000. I think we're paying something like $800 per year. So $800 for $100,000 to me is equivalent to $8000 for a $1,000,000 house. $6800 doesn't seem out of line for $750,000. Is it out of line?

 

[TractorGuy]

Check with Farm Bureau if you have one.

 

[fried1765]

Need insurance advise with farmland we own about a mile away from our home.

The property is farmed by a farmer to bail hay, there is a nice old large barn on the property we just had restored. we have liability insurance (which costs about 1k per year) but now sought property insurance for the barn.

Though someone is at the property at least once a week during the winter and several times a week during the growing season, from an insurance prospective, the property is deemed "vacant" since no one lives on the property.

I asked for a high deducible of $5,000 and $750,000 if building is destroyed. Assuming I'd pay for a broken window or some minor damage up to 5k that could happen, I wanted to get the barn insured in the event it burned down or sustained major damage. at least I get my money back for the restoration. However, the annual premium to add property insurance (only - not including liability) is $6,800 per year. We tried to lower the limit to $500,000, but the premium only came down a few hundred per year.

there are no animals at the property, no electric or plumbing to the barn...

Does anyone have any advise on how to secure property insurance for vacant property at an affordable price?

thanks

Find an agent who can quote you a premium on a Lloyds of London policy.

I own a 289 year old house (6 month occupancy only) with 12 acres, that is in a hurricane zone.
When I balked at a $6000+ per year premium, my agent suggested Lloyds.
Currently paying $2200, but building value is not as high as yours.

 

[HillStreet]

When you shop for coverage tell the agent about the property where you live and the farm property. You may be able to bundle the buildings into one policy. It depends on the state too.

 

[9973720wb19]

My broker said many carriers flat out turned it down because property is considered vacant. The least expensive quote was from Scottsdale....at 6800. per year. I guess I'll call a local State Farm Agent - good advise.

 

[HillStreet]

There are factors that come in to play on the underwriting side:
1. Neighborhood. Declining, appreciating.
2. Crime. What types and how often. Vandalism, arson, thefts?
3. Class of town. This is for fire protection rates. Hydrants? Fire Dept type and distance.

 

[sdquick]

Interested on what you find. Keep us updated.

 

[Fuddy1952]

Curious about which state it's located. Also pictures would be nice.
Also curious about this...years ago we had neighbors/friends here in Virginia who had a 350 acre farm about 25 miles away. They raised Angus beef cattle and had a really nice collection of restored antique John Deere tractors. In the main barn they installed living quarters so they could stay there sometimes.
My point is suppose you did that, so it's no longer considered abandoned property. Either you could stay there part time or someone else. You could even rent it.
My in-laws passed away roughly 10 years ago. That house was vacant but insured, which was somewhat tough since the agent never found anyone home! But...it worked until wife sold it.
Your place, a years insurance would pay for a used travel trailer and well.
Just curious about options.

 

[YLee Kioti]

I think the key word here is 'vacant'.

We paid about 1200 a year on our home. We moved to the homestead into a tiny living space in my shop.
The 'vacant' house annual insurance is now $2900 a year. OUCH!!!

So yeah shop around but our experience is that a normal insurance company will refer you to a high risk carrier, because it is vacant.

 

[the old grind]

Oosik, Allstate wanted more for PL & PD on my 10 YO bike than a decent provider (who will actually pay a claim) got for full coverage on a new model ("Milwaukee moped '89 FXSTS). Allstate was great in the '60s '70s and '80s, but they were deep into tech stocks in the mid '90s and lost their a__ when the bubble burst. Headhunters were brought in to take scalps and recoup losses. Those guys are still filling out claim forms and making payees get lawyers to collect them. I'm told they are second to none for rate-gouging lawsuits too, but I didn't stay around for that after $8k and no lawyers wanting a case that '$mall'. '20 & out' with them after that runaround.

An 'Independant Agent' works for you. A 'Company' Agent (recognizeable name, TV billboard ads, and stockholders to PAY) is working for his/her company. You've likely never heard of Citizens Mut. or Hastings Mut. in MI and that's why my rates are so low. One claim with Citizens was for totalling my car (a guy turned in front of me going into methadone clinic, left in cuffs) They called and asked if $xxx minus deductible was fair recompense. "Yes, sir." I stayed with them for three more years and never saw a rate increase. (switched to an even better 'bundle', competitive rate, and homeowners $250k coverage < $1k/yr.)

My agent has 'dropped' a dozen companies in as many years for not paying claims and now writes for only 28 or so, including GMAC and other trustworthy 'majors'. Tell you what, at the risk of my own rep, I trust my agent's discretion (in biz since '63) enough to recommend these companies for fair rates and for paying claims as we'd expect.

American Modern Insurance Group
ASI Progressive Home Advantage
Auto-Owners Insurance Company *
Citizens Insurance Company *
Dairyland Motorcycle Insurance *
Encompass Insurance Company
Foremost Insurance Company
GMAC
Grange Insurance Company
Hastings Mutual Insurance Company *
Mass Mutual Financial Group
Mercury Insurance Company
Progressive Insurance Company *
Safeco Insurance Company
State Auto Insurance Companies
Travelers Insurance Company *

* are rated :thumbsup::thumbsup: with folks I know. You guys seem to get as much with KTAC insurance and wish I could too.

Progressive made the list of big guys, and while I bundle cars/house to get jaw-dropping rates ($250k homeowners, ~$900/yr) it's Progressive that comes through for m'cycle-only coverage. Insurance is too valuable not to shop around. My SIL was paying Allstate $450/mo for 3 cars and crying to the poor office person on the phone. I convinced her to call my guy. Same coverage for $162/mo less.

Guys/gals, skip the gougers with full page ads in the phone book. Find a good Independant Agent and he'll find you the best coverage for your $$.

 

[the old grind]

.. We paid about 1200 a year on our home. We moved to the homestead into a tiny living space in my shop.
The 'vacant' house annual insurance is now $2900 a year. OUCH!!!.

This can be as simple as 'quality of provider'. I was in that boat for 5yrs. 'Vacant' $120k house was $1900/yr a decade ago if I 'might' file a claim and want a check, $900/yr from a company that rarely pays a claim. (I paid and never filed a claim.)

I could have rented out the house, got a 'landlord' policy, and with a renter's own insurance on their belongings $1200/yr total was possible with the right company. Your agent should be able to explain why 'occupied' reduces the rate so much.

"Shop 'til you drop" or 'pay the freight'.

 

[YLee Kioti]

Yeah I understand why vacant is high risk and high premiums.
Don't need an explanation.
My insurance agent did shop around, this high risk carrier is in Arizona. So this was the best we could get. So we are paying the freight.
No we will never rent.
House must sell so we can build on the homestead.

 

[sandman2234]

Pretty good reason to offer the property to a local law enforcement or maybe a Wildlife Officer, free of rent and supply a clean used travel trailer as a place to stay. We have some property up in GA and offered to build a small house to keep a Deputy on the property just to keep my neighbors from hunting it and dumping on it, and basically using it however they wanted because they know we are hours away.
David from jax

 

[kc5dlo]

You might want to find out what the definition of vacant they are using. I remember the first President Bush maintained his residency in Texas while he was president by staying 14 nights in a hotel in Houston.