So I buy property in KY and I build a stunning log home up on a hill and NO ONE will insure me. The only quote that Farm Bureau who insures the TRAILER we were living in that was on the property is for almost 5K a year. Anyone have any ideas since the recent tornado was only half mile north of us.
I had State Farm for many years 20+. Last year I had a problem with one of the agents and LIES to me on my auto policies. I canceled and at present I'm with Farmers Ins Group rates are very close to State Farm's on the home and garage but deductibles are much higher. The auto policy is lower. I do feel State Farm was a better deal but when anyone lies to me on something small I will not trust them with something big. We also had a farm and ranch policy with State Farm and that is something I have not been able to find else where. Also 2011 the Joplin tornado did damage in our area so rates did increase by most all companies here.
My son is at the moment inquiring about insurance in his name as his name is also on the deed. My past experiences with State Farm in MI were very high quotes so I have avoided them and I know Farmers won't quote farm polices or at least they didn't in MI.
The insurance industry is like most, they are selective. And recent natural disasters (Sandy, etc.) ad to their woes. If you are in "town class 10", this is worst case scenario and most clients can't be underwritten. Town class 10 means 6+ miles to fire department (and more than 1000 feet from fire hydrant). Less than 5 miles to Fire department, is town class 9 and less problem. Zurich is a big, well established underwriter and they provide builders risk in town class 10. Not necessarily after construction. Lloyds of London another. These guys don't use rural agents. They need volume and work around the bigger cities. Go to the largest city nearby and find an agent who uses Zurich.
The other big picture issue (and they won't tell you) is insurance companies only want to deal with people with high morals and great credit scores. Whether in the city, or rural. Not saying this has anything to do with you, but they do their homework. It helps if the same insurance company also covers your car, boat, business, life, etc. When your agent goes to bat for you in Town class 10, volume and track record help the audit process.
For rural locations, theft and fire are the biggest insurance concern. So incorporate a burglar alarm, water storage and sprinkler system in the design/construction and it might pay for itself in long run.
We have 3 ponds on 40 acres and KY has city water no matter where you live so that should not be a factor for us. On the other hand I have no clue where the fire department is but I am sure there is at least on within that range.
When I inquired about builders risk it was just a high and I was not willing to add another 4-5K to the price since I live on the property and could see the building going on from the now GUEST TRAILER. Be sides if you are stupid enough to come up the hill with a cannon pointing at you with the intent to steal you probably would give second thought as to whether it was loaded or there were smaller weapons close at hand. As for burglar alarms, the dogs (yes plural) may lick you to death before the cops ever get here and no one sets foot on the property without one or the other donkey announcing your arrival.
The only strike against us is our 1908 farm house in MI that burnt in 2008 but it was the only claim we had in more than 20 yrs.
I wouldn't think that one claim would be the issue. Check on the location of closest Fire Department. Drive from door to door and use that mileage number when communicating with your insurance company. If under (5) miles, you should be able to get coverage. If over (6), it will be tough.