Whether you are buying a log home or building a log home, insurance will most likely be a requirement. Since log homes are more a niche, insurance may be different. In most cases you do not need special insurance, but buying an insurance geared towards log homes might help prevent problems down the road.
What is log and timber build insurance:
Log and timber insurance is insurance that is geared towards log home and timber frame homes. It can cover the build and the home after it is built. In most cases your lender will require you to have this insurance.
Is log insurance different?
Log home insurance is not different from regular construction or home insurance. The coverages most likely will be the same. There are some companies that do offer specific log home insurance which adds extra coverage. Insurance that is specific to log homes will most likely come with special maintenance requirements. It is important to explore all options be settling and make sure that you know your requirements.
Log home insurance for building a log home or timber frame:
Typically the bank will require you to get log home insurance before you start the build. This insurance is often called “Builders Risk Insurance”. Builders risk insurance covers everything on the job site including mistakes, accidents, theft, damaged products, and the home itself. This is important to have, if something happens to your logs or if something is stolen, the insurance will cover the damaged/missing product. Typically the bank may have insurance companies to recommend. Check: Our Log Home Financing Guide.
Insurance for a built log or timber home:
We have seen, often the rates for the build and the finished log home do not vary much. This seems to be true especially if you are using the same insurance company. Some will lock in your rate when you start the “builder’s risk insurance.” Most companies that offer home insurance will insure a log home that is already built. It typically is not that different.
What you should look for with log home insurance:
If you are looking for insurance for a new build, it is important to check with your bank. The bank will have a list of requirements for the loan. This is important as the bank may not release the funds without proper insurance. If you are looking for log home insurance there are a few extra things you will want to look for in insurance. Here are questions to ask:
- Will it cover log home repair cost such as log replacement?
- Is there a discount if I have a water source nearby?
- Is there a discount for a certain type of roofing?
- Will it cover empty months (if it is a second home)?
- Will it cover unlicensed contractors? (if building)
- What are the deductibles and discount rates?
- Give them the requirements from the bank.
Where to get log home and timber frame insurance:
The first place to check is where you already have insurance. Often they will give a bundle rate or better rates as you are already a customer. It is a good idea to check with a handful of companies and compare both policy and price. There are local insurance groups that will compare insurances for you and show you your option. The main thing is that you don’t just go with the cheapest. Aim for the best value and see if they have policies geared towards log homes. If you are building, a great place to ask is your lender. Overall log homes are pretty easy to insure. The main difference will be building vs buying. Companies that offer regular home insurance don’t always offer new construction insurance.
Often people think that it will be more difficult than it is to insure a log home. The main problem that we see is people get mixed up between new construction insurance and insurance policies for a home. As long as you are clear with what you need, you should not have a problem.