The U.S. Department of Agriculture reports that about 46 million people in the country live in rural areas. Every wise rural resident needs homeowners insurance to protect their often larger properties, but the options in rural areas aren’t always clear.
Keep reading to learn some details about home insurance for rural properties and what to look for in the best rural homeowners insurance companies.
Home Insurance for Rural Properties
Home insurance for rural properties protects policyholders from the same perils as typical home insurance plans for suburban and urban properties. But, you may need further protection for outbuildings, equipment, and other things you won’t find on common suburban properties.
Rural properties often have larger plots of land than urban and suburban homes. The land itself isn’t covered by insurance unless improvements exist. Rural properties often have many improvements.
You can often find several outbuildings and features that urban or suburban plots don’t typically have, like silos, sheds, barns, gazebos, and more. Rural property insurance should cover these different features.
What Does Rural Homeowners Insurance Cover?
Rural homeowners insurance is designed to protect you and your property financially. Insurance plans cover several potential sources of damage, called perils. Your policy is divided into different sections that protect you from these perils.
Dwelling coverage: the part of your rural property insurance that protects the main structure of your house and its systems. Physical parts of your home, like the porch, roof, and walls fall under dwelling coverage. Your electrical wiring and HVAC systems do, too.
Other structures coverage: the part of rural homeowners insurance that protects features on your property that aren’t attached to your main house. These typically include fences, sheds, gazebos, detached garages, guest houses, driveways, and more.
Personal property coverage: covers your personal belongings in and around your property. Covered items typically include furniture, electronics, tools, clothes, and more.
Loss of use: loss of use reimburses you for temporary living expenses you incur if your home gets destroyed by a covered peril and you have to relocate while the insurer rebuilds or repairs it. Loss of use can cover hotel stays, food, gas, and more.
Liability coverage: liability coverage kicks in if a visitor gets hurt on your property and pursues you for damages. It also covers dog bites. Your liability coverage can cover their medical expenses and your legal fees.
Medical payments coverage: medical payments will cover medical expenses for minor injuries someone suffers on your property.
How Is Insuring a Rural Home Different?
You may need to raise the limits of your other structures coverage or personal property coverage when insuring rural property if you have several outbuildings or many unique or high-value pieces of equipment.
You may also need to add special endorsements to your policy if you have a small hobby farm or do business at your rural home.
Other Structures Coverage
Rural properties often have much more land than urban or suburban dwellings. This extra space means homeowners have much more room for outbuildings or additional features on their property. Rural properties often have barns, sheds, detached garages, guest homes, and more. You could also have fences running throughout and surrounding your property.
In normal policies, other structures coverage is maxed out at about 10% of your dwelling coverage. So, if your insurance company values your home at $250,000, you’ll likely have about $25,000 of other structures coverage.
Having several buildings on your property will call for additional other structures coverage. One large barn, a few small sheds, or even hundreds of yards of fencing could easily reach the 10% standard limit. You may need to consult your insurer about upping your other structures limit to accurately cover all of the features on your property that aren’t attached to your house.
Also, note how your policy covers fences. Many carriers will cover fences at actual cash value, meaning your provider will reimburse you for fence damage after factoring in depreciation. This means you may not get the total value for your fence, which can be especially problematic if you have specialty or expensive fences.
Also, your insurer may exclude fences related to business activities, like corral fences or livestock pens, by default. Notify your insurer if you have such fences and want them covered.
Personal Property Coverage
Depending on what you keep around your rural property, you may need to raise your personal property coverage limits beyond the standard limits. Your insurer should be aware of high-value pieces or equipment used for home business or farm use. They will need to be designated in your policy to get them covered.
You may need special coverage in your policy if you have:
- Livestock or other farm animals
- Tractors or other farm equipment
- Grain and crops
Your insurer may put individual limits on live animals if you want to add them to your policy, such as $2,000 per cattle, for example. Be aware of all animals and how they’re valued in your plan. Standard valuations of them may not be enough.
Insurance companies also have sub-limits for many high-value items in your house, like valuables or art. Many rural properties can also have special equipment that exceeds standard high-value sub-limits. Be sure to discuss values for farm equipment like tractors and grain, if applicable.
Is Insurance Cheaper in Rural Areas?
No, home insurance is often more expensive in rural areas than in urban or suburban areas. Homes in rural areas often have higher premiums due to their increased distance from emergency services.
Insurance companies have classification systems for homes relating to their distance from fire stations or fire hydrants. The further away your home is from a fire station, the longer it can take the fire department to get there. Therefore, a fire that breaks out in your home can cause greater damage, which in turn costs more money for the insurer to repair.
The classification system, commonly called an ISO rating, ranges from 1 to 10. A lower number is better, so lower number ratings mean better fire department protection. A rural home with an ISO rating closer to 10 can pay more for insurance than a property with an ISO score of 1 or 2. Rural homes tend to have higher, worse ISO scores because they tend to be farther away from fire departments.
Factors That Affect Rural Home Insurance Rates
Insurance companies are in the business of mitigating risk. They look at several property characteristics to determine a policy premium for that property. Here are some important factors for rural home insurance rates:
- Distance from fire hydrant/station
- Flood zone
- Property features – fences, sheds, outbuildings, etc.
- Age of home and buildings
- Business use of property
Having several outbuildings will likely raise your premiums. More buildings mean more to insure, which will cost more money. The age of the buildings is important, too. Older buildings are more likely to have issues leading to a claim. Old roofs, aging HVAC systems, and dated wiring components are all red flags to providers. They can raise your rates or nullify your possibility of getting a policy altogether.
You’ll also probably experience higher rates if you conduct any business on your property. You may need additional endorsements to cover customers’ liability on your property or special coverage of business use of buildings and equipment. Such endorsements, like an incidental farming personal liability endorsement, may raise your premiums.
Best Homeowners Insurance for Rural Properties
The best rural homeowners insurance will extend your coverage to every aspect of your rural property that you need, like additional other structures or unusual equipment.
Recommending the best rural homeowners insurance companies is difficult because each rural homeowner has different properties and different needs. You should always compare premiums for multiple carriers in your area to find the best deal.
At Clovered, we want to make finding the best coverage easy. We can help you find the coverage you need at the price you want. Use our online quoting tool to find rural home insurance companies that will cover you, or you can call us directly at 833-255-4117 to chat with someone on our team of licensed agents.
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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.
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Though providers may vary on the criteria used to determine whether a home is uninsurable. Living in a high-risk location, having hazardous home features, home maintenance issues, your home's history of insurance claims, and more can be reasons an insurance company may determine a house to be uninsurable.What are 2 things not covered in homeowners insurance? ›
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.Why am I being denied for home insurance? ›
You can be refused homeowners insurance based on your claims history or credit score, or due to underwriting risks such as having a pool, an old roof, or a vicious breed of dog.Is it hard to get homeowners insurance after being dropped? ›
If an insurance company drops you, it means your policy will either be canceled or not renewed when it expires. And depending on the reason for the cancellation or nonrenewal, being dropped can make it difficult to find alternative coverage.What not to say to home insurance adjuster? ›
- Don't Admit Fault. What should you not say in a claim? ...
- Don't Downplay Damages. Victims who downplay their damages give insurance adjusters a chance to downplay the settlement offers they make. ...
- Don't Give a Recorded Statement. ...
- Don't Accept the Initial Settlement Offer.
Insurance companies frequently deny coverage if the applicant has a recent history of accidents, a series of minor traffic tickets or a serious infraction such as a DUI. These are strong indicators of a risky driver who may cause a car accident and submit a claim.What are four things not covered by homeowners insurance? ›
Standard homeowners insurance policies typically do not include coverage for valuable jewelry, artwork, other collectibles, identity theft protection, or damage caused by an earthquake or a flood.What are the four main things protected under homeowners insurance? ›
Well, homeowners insurance helps protect you, your home and your belongings from all sorts of unexpected events. And with a standard policy you'll get four key types of coverage: dwelling, other structures, personal property and liability.Which area is not protected by most homeowners insurance? ›
- Home businesses.
- Everyday wear and tear.
- Home neglect.
You should never admit any fault or even partial liability for what occurred. Often, the less you say, the better. Don't offer theories about the damage. All repair and replacement costs should be substantiated rather than based on your opinion.
- ALLSTATE. Allstate CEO Thomas Wilson admits that his priority is the shareholders—not the insured parties who have claims. ...
- PROGRESSIVE. ...
- UNITEDHEALTH. ...
- STATE FARM. ...
- ANTHEM. ...
- UNUM. ...
- FEDERAL EMPLOYEE BENEFITS. ...
Natural disasters, like floods and earthquakes, may not be covered by standard insurance policies. Sewer backups, canine attacks, and loss of expensive valuables are other situations that may not be covered. Adding endorsements or acquiring a separate, specialized policy can provide coverage for each of these events.How many claims before homeowners insurance cancels? ›
The industry experts say that more often, the magic number is two. This means that most insurers will decline to renew your policy after you exceed two claims in a period of three years. According to many insurance agents; insurance policyholders with more than one claim in ten years is considered high risk.How many claims before State Farm drops you? ›
There is no limit on the amount of insurance claims you can file, but most experts say filing more than one claim per year could result in an insurance company canceling your policy.What is an insurance credit score? ›
What Is An Insurance Credit Score? An insurance credit score comes from your credit history. Companies use the scores – along with other factors – to estimate your potential to have an insurance claim.What does R&R mean on home insurance claim? ›
R&R = Remove & replace. This Xactimate entry is used when an item is being entirely demolished & replaced with a new similar item of similar grade & composition.What not to say to an insurance investigator? ›
Some key phrases to avoid saying to an insurance adjuster include: “I'm sorry.” “It was all/partly my fault.” “I did not see the other person/driver.”Will insurance pay to replace entire floor? ›
Dwelling coverage, on your condo or homeowners policy, may pay to repair or replace your floors and carpet if they're damaged by a covered peril. For instance, if your home's floors are damaged in a fire, your home insurance may pay for new flooring, up to your policy's limits and minus your deductible.Is it OK not to have home insurance? ›
Legally, you can own a home without homeowners insurance. However, in most cases, those who have a financial interest in your home—such as a mortgage or home equity loan holder—will require that it be insured.What Cannot be insured? ›
Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss for an insurance company to cover. An uninsurable risk could include a situation in which insurance is against the law, such as coverage for criminal penalties.
tell your insurer about the accident straightaway, even if you don't want to make a claim. if someone is injured, show your insurance certificate or cover note to the police.What are the five basic areas of coverage on a homeowners insurance policy? ›
The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages.What are the common exclusions in a homeowners policy? ›
Common exclusions in even the most comprehensive homeowners policies include: earth movement, such as earthquakes; sinkholes or landslides that damage your home; water damage, such as floods or sewer back-ups that leak through a pipe or seep through the foundation causing damage to your home; damage resulting from ...Which of the following losses would not be covered by a homeowners policy? ›
Most homeowner policies provide coverage that does not apply to animals, birds, fish, automobiles and business property; for loss or damage caused by flood, surface water, water which backs up through sewers or drains, earth movement, nuclear damage, war, etc.What are the 3 basic levels of coverage that exist for homeowners insurance? ›
- Actual Cash Value.
- Replacement Cost.
- Guaranteed/Extended Replacement Cost.
A homeowners insurance policy typically covers natural disasters caused by explosion, fire, lightning, hail, windstorm, hurricanes, tornadoes, extreme cold, volcanoes and theft. Homeowners insurance usually does not cover earthquakes, floods, tsunamis or nuclear disasters.What are the three most common homeowner policy coverage areas? ›
Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.Which homeowners policy provides the most coverage? ›
What Is an HO-5 Home Insurance Policy? Called a comprehensive policy, an HO-5 policy offers the highest level of insurance coverage for houses and belongings. It covers your house and belongings under all circumstances except those listed as exclusions in the policy.What are the three 3 main types of property insurance coverage? ›
There are three types of property insurance coverage: replacement cost, actual cash value, and extended replacement costs.Which type of insurance protects against most risks to property? ›
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage.
Is homeowners insurance negotiable? You cannot negotiate your homeowners insurance quote, but you can lower the amount you pay by taking a variety of steps—maintaining a good credit score, paying in full, installing protective devices, researching discounts, and more.How to negotiate with a home insurance adjuster? ›
- Come well-prepared with supporting evidence. Records and documentation are critical components of the process. ...
- Calculate a full settlement amount. ...
- Know your bottom line. ...
- Beware of the first offer. ...
- Get the settlement offer in writing. ...
- Read the fine print.
- How much coverage did you quote on my house? ...
- How much coverage is provided for my personal property (my stuff)?
- Are my contents insured for replacement cost or actual cash value (ACV)
- Is my house insured for replacement cost or actual cash value (ACV)
- Do I have sewer and water coverage?
- Amica Mutual: Best overall.
- USAA: Best for military.
- State Farm: Best for customer satisfaction.
- GEICO: Best for cheap home insurance.
- Island Insurance:Best for Hawai'i.
- Umialik:Best for Alaska.
- Allstate:Best for investors.
If your policy has lapsed due to non-payment or cancellation, State Farm may deny your claim. Always ensure your premiums are paid on time, and if you face financial difficulties, contact your agent to discuss options. If State Farm suspects fraud or misrepresentation, they may deny your claim.Why does State Farm deny so many claims? ›
Why Does State Farm Deny Claims? State Farm denies claims or offers low settlement amounts to keep their profits higher. Depending on the facts of your case, State Farm representatives may employ bad faith practices to avoid covering your losses.Why is it so hard to get homeowners insurance? ›
There are a few things that can make you appear high-risk to an insurance company: your insurance claims history, a low credit score, and a prior lapsed homeowners insurance policy. If you've been told in the past that you are ineligible for homeowners insurance, don't fret. You do have options.What two events are not covered under homeowners insurance? ›
Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear. Learn about all the different home insurance exclusions and how to get covered. Pat Howard.What reasons can homeowners insurance drop you? ›
- Filing excessive claims, even zero-paid claims.
- Failure to make payments on time.
- Increased location risk.
- Poor property maintenance.
- Ownership of dangerous pets.
The short answer is that filing and then canceling a claim should not affect your homeowners insurance premium in any way. However, keep a close eye when you get your renewal policy, and review the charges to ensure there aren't any unexplained increases in your insurance rates.
In general, there is no set amount to home insurance claims you can file. However, two claims in a five year period can cause your home insurance premiums to rise. Over two claims in the same period may affect your ability to find coverage and even lead to a cancelled policy.What is considered too many claims? ›
Policyholders who have filed two or more claims within a three-year period are considered to have multiple claims.What happens if you file too many insurance claims? ›
Filing multiple insurance claims cause the insurance company not to renew the policy. Even if you switch to a new auto insurer, your rate will likely increase because your new insurer may view you as a higher risk for an accident.Why is State Farm taking so long with my claim? ›
Generally, State Farm insurance adjusters may take longer to review a claim if the injury victim has not yet reached maximum medical improvement (MMI). This is partly because they may need to pay more on your claim if you have yet to recover fully.Do home insurance companies check your credit? ›
When you apply for homeowners insurance, the insurance company will run their own version of a credit check to determine how much of a risk you'll be to insure. If you have a good credit score, your insurer may view you as a “low-risk insured” and offer you cheaper rates.What is a good home insurance score? ›
Generally, a “good” insurance score is anything above 750. But if you find yourself with an average number (600–749) or below average (500–599), don't fret. There are a lot of things you can do to improve your insurance score. Generally, a “good” insurance score is anything above 750.Do insurance companies run your credit for a quote? ›
It is true that insurance companies check your credit score when giving you a quote. However, what they're doing is called a 'soft pull' — a type of inquiry that won't affect your credit score. You'll be able to see these inquiries on your personal credit reports, but that's it.Why would I be uninsurable? ›
A client is “uninsurable” when no carrier in the market is willing to provide them with an individual life insurance policy. This can happen for many reasons; the most common are health issues (cancer, chronic health condition, suicidal ideation, etc.), treatment for alcohol or drug abuse, and high-risk hobbies.What makes something uninsurable? ›
Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss for an insurance company to cover. An uninsurable risk could include a situation in which insurance is against the law, such as coverage for criminal penalties.What makes a risk uninsurable? ›
Simply put, uninsurable risks are risks that an insurer is not going to be willing to take on. The insurer has looked at the situation and realized that there is no good reason to be the insurer. There is essentially no upside for the insurer and a bad outcome is nearly guaranteed.
- Know why you are uninsurable. Insurers decline for a variety of reasons and the decision to decline is not always permanent. ...
- Review all current policies. ...
- Explore alternative insurers. ...
- Consider buying insurance for your children. ...
An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.What are 3 reasons you may be denied from having life insurance? ›
A serious medical condition or poor results from your life insurance medical exam tend to be the most common reasons why people are rejected. Or it might even be non-medical related, with factors like bankruptcy, a criminal record, a positive drug test, or a dangerous hobby all having an impact.What is an example of uninsurable? ›
A risk that an insurer will not take on. For example, this may be where an event is inevitable (such as a terminally-ill person's death), gradual (such as rust or corrosion) or against the law.What is common rejection for insurance? ›
- False Information. An insurance policy is an agreement between the insured person and the insurance company. ...
- Delay in Premium Payments. ...
- Avoiding Medical Tests. ...
- Type of Death. ...
- Unentitled Nominee Details. ...
- Delay in Filing a Claim. ...
- Contestability Period.
These elements are "due to chance," definiteness and measurability, statistical predictability, lack of catastrophic exposure, random selection, and large loss exposure.Which of the following types of risk is generally uninsurable? ›
Answer and Explanation: POLITICAL RISKS are normally uninsurable by private insurance companies. Property, liability, and personal insurance are all common types of insurance that one may purchase for protection from unforeseen circumstances.What are four examples of non insurable risks? ›
- Residential overland water.
- Nuclear hazard.
- Terrorist acts.
- Acts of a foreign enemy.
Property risk: Property risk includes damage from natural disasters, fires, burglary, and flooding. 2. Personal risk: Examples of personal risk include bankruptcy, unemployment, arrest, and identity theft.Which of the following risk criteria are not insurable? ›
A risk may not be termed as insurable if it is immeasurable, very large, certain or not definable.
If your health insurer refuses to pay a claim or ends your coverage, you have the right to appeal the decision and have it reviewed by a third party. You can ask that your insurance company reconsider its decision. Insurers have to tell you why they've denied your claim or ended your coverage.What are five ways to avoid rejection of insurance claims? ›
- Verify insurance and eligibility. ...
- Collect accurate and complete patient information. ...
- Verify referrals, authorizations, and medical necessity determinations. ...
- Ensure accurate coding. ...
- Get up-to-date pandemic-related billing changes. ...
- Know your payers—and their rules. ...
- Submit the claim on time.
Yes. Under the Affordable Care Act, health insurance companies can't refuse to cover you or charge you more just because you have a “pre-existing condition” — that is, a health problem you had before the date that new health coverage starts. They also can't charge women more than men.