problem with insurance for build

9 years ago

Just as we are wrapping up our financing and pre-construction preparation, we have hit a snag.

Our current insurance company will not cover us for builder's risk or course of construction because we have our three miniature horses on our property.

Other companies we have spoken with have no problem with the horses but have declined to cover us due to the very old single-wide in which we are living until our house is built. It has little to no value, so we aren't seeking to insure the trailer itself, but this doesn't matter -- it is on the property and thus considered a risk.

Does anyone have recommendations for insurance companies that will cover us under these circumstances?

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Comments (4)

nostalgicfarm
9 years ago
Just keep calling. You may also ask for an exclusion for the trailer. Is it possible to board the miniature horses for the months of the build? Will your insurance company not cover them after the build? Any chance you have more than one "parcel"? If you do have 2 or more parcels, you could place the horses on the other parcel for the time being. Insurance companies have been hit so bad in recent years with loses that they are careful about the risks they take on...they don't like anything new!
User
9 years ago
Yep - if it's not one thing it's 10 others.

I agree with the idea to just keep trying. I'd start working several angles with a few different companies. Ask them what they WOULD insure and then go from there. Engage them in a conversation. And if you're dealing with the front line person who just happens to answer the phone, ask if you can speak to the actual agent too. Sometimes they have more years of experience and can think of a creative solution.
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worthy
9 years ago
Rather than going down the list of direct insurers, contact an insurance broker, who deals with many companies.

For instance, I regularly insure vacant foreclosed properties that companies such as State Farm won't touch. A broker has found ready insurers instantly--names I had never heard of.
sbdesign
Original Author
9 years ago
Thanks for the suggestions!

I have been working with an independent broker...at the time I posted, he had had no luck, but he has since found a possibility. Now if the universe will stop playing phone tag...

I don't believe our regular insurance company will have any problems with homeowner's insurance with the horses once the build is complete, but they contract with another agency for builder's risk/course of construction, and it was this other company that objected to equines of any size.

If all else fails, we could board them, but that would be a last resort.

As for the companies that objected to the mobile home, I asked if they could just exclude it, but they wouldn't conider that.

So, please cross your fingers for us...hopefully we'll clear this hurdle and get on to...the next one.