All property deserves to be protected, and especially when it's as epic as a hobbit house. There are risks of all kinds that need protecting, and here's what an independent insurance agent would keep in mind when trying to find the right coverage for it all.
How Do You Insure a Hobbit House?
Hobbit houses aren't just things you read about in your fantasy novels like Lord of the Rings. They are an actuality and a very trending one at that. Hobbit houses, aka earth homes, were once little hideaways or maybe inexpensive additions to a property. Now they are energy efficient and can be powered almost entirely by the sun.
Yes, hobbit homes are all the rage when it comes to low-cost assembly, with some construction companies building them in as little as six days. Talk about a quick turnaround.
What about insuring one of these truly unique properties? Where does coverage begin, and how does it end? Well, coverage will be similar to your regular homeowners insurance policy. However, it will be very different when it comes to the replacement cost estimation and materials used.
Hobbit home coverages may include:
- Liability: This coverage can be for bodily injury and property damage to others who may stay, visit, or otherwise be at your humble abode.
- Dwelling: Coverage for your actual hobbit home is considered dwelling coverage and is determined by running what's called a replacement cost estimator. This estimator will plug in the materials that your hobbit home is made up of and then shoot out a number that it would cost to replace to like, kind, and quality.
- Personal property: This is coverage for your belongings like furniture, clothing, utensils, and the like. It will be one set amount that is typically 75% of your dwelling coverage.
- Loss of use: This coverage is for when a claim occurs, and you have to get out of your hobbit home while it is repaired or replaced. Loss of use pays for your stay elsewhere and any other expenses that would arise from you having to relocate.
- Other structures: This is an automatic coverage on most homeowners policies that gives an allotted amount, usually 10%, for other structures that are not permanently attached to the main property.
- Ancillary: Each homeowners policy has its own brand of ancillary coverages. These are perks or extras that are included in your homeowners policy and can be utilized if a claim arises — things like identity theft protection.
Regardless if you are just getting started with the idea of owning a hobbit home, or if you're Bilbo Baggins himself, you'll need insurance.
Unique Property Coverage for Hobbit Houses
Hobbit houses are not your typical cookie-cutter home. They are unique, usually made up of one-of-a-kind materials and have oddly shaped windows, door frames, and structures. The materials are what make hobbit houses so cool, but harder to insure.
If your hobbit house gets taken out by a wild dwarf party that got a little too crazy, then the insurance company will replace it under your dwelling property coverage, but you may have to settle for some standard materials. This means your custom, forest cedar tree flooring may have to settle for the closest match at a flooring store. The same is true for historic homes with irreplaceable materials that are no longer available.
Another property coverage is for your personal belongings such as furniture, rugs, decor, and anything that isn't permanently attached to the home. These are items that are included in your homeowners policy. A little trick of the trade is to take an inventory of all your belongings before a claim is happening, so you are prepared and remember all that needs replacing.
Liability Coverage for a Hobbit House, in Case Your House Guests Aren't Careful
If your wizard friends came over for tea and bumped their heads on your low hobbit home ceilings, a liability policy would pick up the medical expenses. Liability insurance is vital when it comes to a homeowners policy and can often mean the difference between life as usual and losing everything.
When a liability claim arises, it's typically substantial and usually means that someone got hurt on your property or as a result of being at your property.
Fair-weather friends are plentiful and tend to turn their backs when something goes wrong. Filing a liability claim between friends is common and can happen fast. So before you have a wild night in, take a record of your homeowners insurance to make sure it's up to the challenge.
Umbrella Coverage and Why Every Hobbit House Needs It
Let's face it, your hobbit house may have a lot of commotion waiting for good to triumph over evil, and in the waiting, accidents happen. If one of your wizardly colleagues gets in a stick fight with another dwarf, then you'd better be prepared with an umbrella policy. An umbrella policy will kick in when you have exhausted your underlying liability limits for any one claim and still need more coverage. Picture an actual umbrella creating another layer of liability protection to weather the storm.
Scheduled Property Coverage for Rings and Other High Valued Items
Say you have this ring and it's worth a lot. Some may call it invaluable, at least without a proper appraisal. That ring is much too worthy to be shuffled in with the rest of your personal property insurance. No, it needs its own separate policy known as a scheduled policy. A schedule policy will provide coverage up to the appraised amount and bonus, and no deductible will apply.
This is nice, especially if a mysterious disappearance or theft occurs. It's a beautiful ring and it needs proper protection, just like all your other high-valued personal belongings.
Cost of Homeowners or Hobbit House Insurance Based on Location
Bilbo Baggins lives in Middle Earth, and his hobbit house may work with some insurance companies other than in the United States. So, what does coverage look like in the Midwest or Boca, and does location matter? Location does affect the premium, but so does a slew of other coverages listed below.
- Credit scores: As the titled owner of a hobbit house, your credit score comes into play when you are purchasing homeowners insurance. If you have bad credit, then your insurance rates will be higher. This is because each insurance company runs what's called an insurance score, which doesn't take a hard hit to your credit, but it does factor it in.
- Square footage: How big your hobbit house is, the more it will cost to replace, and the more it will cost to insure. The more insurance you have, the more premiums you will pay.
- Like, kind, and quality: Your hobbit home may eventually have a claim that requires the dwelling coverage to be used. Dwelling coverage will provide replacement cost coverage to rebuild or replace your hobbit house to like, kind, and quality. As discussed, like, kind, and quality may be a tricky thing for a unique home like a hobbit house.
- Coverage: How much coverage and the ancillary endorsements your homeowners policy has will affect pricing. More coverage means more money.
- Location, location, location: Location is king. Where you live matters to the insurance company. The more crime and traffic your little neck of the woods has, and the more crowded it is, the higher your insurance rates. Also, if you are near a fire hydrant and within five miles of a responding fire department, that will make an impact on prices as well.
All in all, insuring your hobbit house is possible, and with an independent insurance agent, it's even better. Working with an independent agent will get your hobbit home the best premiums and make sure coverage matches the quality.
Here's How an Independent Insurance Agent Would Help
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility, and competitive pricing while working for you. Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Candace Jenkins
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