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Specialty Insurance Buyer’s Guide


Every property purchase is an exciting one, especially if it’s your first time getting into alternative living and looking into speciality insurance for the first time. Navigating things like mortgages and insurance can be difficult for the uninitiated. Here, we’ll go over a quick checklist for those looking to get their first home coverage or specialty insurance. 

#1 Understand Your Insurance Needs

Getting insured isn’t just a practical idea. It’s very necessary when becoming a homeowner. Most mortgage lenders make having homeowners’ insurance a requirement before lending any money. However, there may be more insurance packages you need to buy. 

For example, if you live with someone else but pay the mortgage, you may need life insurance or disability insurance. This helps provide coverage if, for whatever reason, you can’t pay the mortgage. 

Additionally, home insurance can help protect your home belongings in case of an emergency such as theft, fire, storms, and damage that can occur inside and outside of your home. 

#2 Understand What Affects Insurance Pricing

You might assume that the only thing affecting your insurance premiums is the price you paid for the house, but that has little to do with it. This is a good thing since rising real estate costs don’t necessarily raise insurance. This isn’t to say premiums are immune to outside influence. 

For example, premiums will be higher if you live in a state with recent natural disasters. Specialty insurance (for things like prefab tiny homes or ADU homes) may also have different premiums. Some lenders may view alternative homes as more prone to damages, while sometimes the location in which you are will determine the cost. 

The better built your alternative living home is, the lower you may get your premiums.You can actually lower your premiums by ensuring that you upkeep and repair your home since this makes it less likely that severe damage will occur! Also, keep in mind for the future that submitting multiple claims in quick succession might lead to a spike in premiums. 

#3 Decide How Much Coverage You Need

We’ve talked about how important insurance is. However, it is entirely possible to be over-covered. There’s often more value locked into your purchase of property than you realize. For example, even if your home burns down, you still own the land it was built on, which is still quite valuable (especially in today’s real estate market!).

A good place to start is to imagine the worst-case scenario and then buy appropriate insurance. Generally, this means you should be purchasing enough insurance to cover the materials and labor needed to rebuild your home. 

If you live in a state that is prone to natural disasters or you live near water and hurricanes are a possibility near you, it’s more likely you will consider move coverage compared to city living. 

#4 Decide If You Need Additional Insurance

Even the most comprehensive homeowner’s insurance isn’t going to cover absolutely everything. For example, you can purchase separate insurance for earthquakes or floods. Many homeowners’ insurance packages will have a limit on how much they cover your possessions. You can buy additional valuables insurance to ensure that absolutely everything you want to be covered is done so thoroughly. 

Bundling insurance is also usually a great option to consider. Many times this will help you save money if you can bundle your home insurance with your car insurance. 

#5 Find a Good Insurer

You can do all your homework regarding insurance but still be disappointed if you end up with an insurer who isn’t clear on your needs. The best insurers will make sure to answer all your questions and point out the best ways for you to keep your premiums reasonable. They’ll also be able to handle your unique insurance needs, such as specialty insurance for things like ADU homes or prefab tiny homes.

At CoverTree, we specialize in helping those with alternative homes and living situations. No matter if you need specialty insurance for a manufactured home, a tiny home, ADU homes or travel trailers. CoverTree has you covered. You can get started and easily purchase home insurance online today.

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CoverTree Inc. (CoverTree) is a Program Administrator for CoverTree’s Manufactured Home Program, underwritten by Markel American Insurance Company (Markel), located at 4521 Highwoods Parkway, Glen Allen, VA 23060. CoverTree is acting as the agent of Markel in selling insurance policies. CoverTree receives compensation based on the premiums for the insurance policies sold. Further information is available upon request. Subject to underwriting guidelines, review, and approval. Use of Covertree is subject to our Terms of Use, Privacy Policy, and Licenses.

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