Homes of all shapes and sizes need insurance, even the unusual ones. Haunted houses are a thing of some people's nightmares, but they need coverage just like any other property. 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 coverage for a peculiar home — if it was a thing.
How To Insure a Real-Life Haunted House
You really can't. But if you could, these are the risks you'd want to think about:
- Creepy house guests: If your family is somewhat unusual, then you may have some unwanted house guests. For instance, a rather hairy cousin with a pronoun for a name. These "guests" may cause a stir, and if they take a fall down the stairs, then your liability insurance would be on the hook. Liability insurance is essential on any homeowners' policy and will protect you from personally being sued when an injury or property damage of others may strike.
- Broken windows: The Addam's Family home was anything but kept up. From broken windows to horrific spider-infested dungeons, it lacked in personal care. This could be a big problem for your homeowners insurance company. An insurance company wants to make sure there are not unnecessary claims due to hazards. If your windows are broken, they are likely leaking, causing damage to the interior of the home. If you have a bug problem, such as termintes, this can also cause damage to your home. Property coverage is included on every homeowners policy providing insurance for the dwelling itself and your personal belongings. Taking care of those items is every policy holder's responsibility.
- Lurch starts a fire: So maybe you're not exactly insuring the Addams Family home, but you might have a Lurch who accidentally burns down the house, meaning you have to move out until the home is rebuilt. This is a coverable claim and would fall under your loss of use coverage. Loss of use would help your family pay for a place to rent and any extra expenses while you are kicked out of your spooky abode.
Haunted House Property Coverages
Most haunted houses are bothered by curiosity seekers at some point or another. At times, some of these visitors may not be so welcome and can even cause danger.
For example, if some teenage kids decide they want to have a thrill and come to your house to check things out, they may end up causing damage to your property, either by accident or as a result of vandalism. If property damage occurs on either the dwelling or your personal belongings, your policy will have coverage as long as the damage is a covered peril.
Most covered perils on a homeowners policy are as follows:
- Hail and windstorms
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
Most homeowners insurance policies are what's known as an HO3 policy form. An HO3 form will cover the above and anything else unless it's listed as an exclusion on the policy.
Liability Coverages for a Haunted House, and Any Unwanted Guests
A haunted house is a hotbed for electromagnetic activity, attracting ghost hunters from all over. Once you have a ghost story to tell, these hunters are hoping your haunted house will be their claim to fame.
Suppose a team of ghost hunters takes refuge in your haunted abode for the night. They are up to their testing and have all their spooky gadgets set up when one takes a spill down a hidden staircase. If haunted houses had homeowners coverage, this policy would provide some liability to help with any lawsuits.
A homeowners policy needs to have the most comprehensive coverages for the best claims results. Your independent insurance agent can make sure your policy is accurate and sufficient.
Additional Home Protection with Flood Insurance
Whether it's an ectoplasm flood, or just the water kind, you may want to consider flood insurance if your haunted house is located in a flood zone.
Flood insurance is a separate insurance policy that is not included in your primary homeowners policy. If any water comes in from outside and floods your creaky wood floors or dungeon basement, you'll be wishing you cooked up a flood policy.
Ask your independent insurance agent to add this policy to your not-so-haunted house property. It's better to be safe than sorry.
Additional Haunted House Coverage with An Umbrella Policy
A haunted house is an accident or ten waiting to happen. And if someone gets hurt, the medical bills can be astronomical. An umbrella policy can help kick in when you've reached your home policy limits.
You wouldn't want one ghastly mistake to be your demise. An umbrella policy provides additional liability coverage over your underlying insurance policies. When you have maxed out your underlying limit, you're umbrella policy kicks in.
Haunted House Discounts on Premiums
It's not likely that a haunted house needs a security alarm system, but it wouldn't be bad for the premium. While every haunted house has its own set of ghouls that could affect the premium, if coverage were possible, there are plenty of other factors that can determine the price. Your homeowners insurance is no different.
Haunted house and homeowners insurance price factors:
- Credit scores of named insured: As the titled owner of your very own haunted house, your credit score comes into play when you are purchasing homeowners insurance. If you have bad credit, then your insurance rates will be more. 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 haunted 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 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 home to like, kind, and quality.
- 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 crowded your city is, and the more crime and traffic it has, the higher your insurance rates. Also, if you are near a fire hydrant and within five miles of a responding fire department, it will make an impact on prices as well.
What if I Rent out My Haunted House As an Airbnb?
If you decide to turn your haunted house into a haunted Airbnb, then your coverage will need to be slightly different. First things first, you should have landlord coverage. This will give you the right type of homeowners policy and make sure it is properly endorsed to provide coverage for short-term tenants.
Oddly enough, there is a market of vacation goers who are seeking an adrenalin rush of staying in a haunted house. Having some added liability insurance and loss of use coverage will make sure everything is protected with it comes to your haunted Airbnb.
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.