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.