Country insurance

What you need to know to protect your investment - whether it's primary or second home insurance

You love your rustic retreat, right? So here are some tips about country insurance.

Are there any insurance companies that you'd recommend? Any horror stories? Share your experiences and recommendations.

Primary home or getaway?

Because of the nature of seasonal properties, many insurance companies don't offer separate seasonal home insurance. Instead country insurance on a recreational home is often an extension of your primary home insurance.

Insuring a second home can be more expensive because the risk is higher since you are not at the home year round. For example, if there is a fire and no one is there to extinguish it, the damages will be far greater. Insurance for seasonal dwellings often doesn't cover theft or vandalism - so check out carefully what you are covered for.

Log home insurance

According to one source, most major coverage companies offer log home insurance at close to the same premium rates as standard frame housing. What makes the country insurance pricey is other factors such as being far from fire hydrants and fire stations. For example, one couple said, "the cost of homeowners insurance for our new log home will be three times more than what we are paying to insure our current home (stick-frame, with brick and vinyl siding) in a subdivision with a fire hydrant right across the street, and the nearest fire station less than one mile away."

Establishing the value of your log home may also be a challenge. According to Coyote Log Homes there is currently "only one reference document for insurers to establish the value of a log home. The Log Home Appraisal Training Guide, published by Marshall and Swift with the assistance of The Log Homes Council and its members, gives only a very general view of log homes, and is mostly focused on the evaluation of manufactured or machined milled log homes. There is in fact very little information available for full and proper assessments of handcrafted log homes, especially with the wide range of acceptable building practices."

Several log home owners have mentioned that State Farm insurance will cover log homes. Talk to other log home owners about what insurance policies they carry and what they recommend.

Renting?

If you rent your rustic home to others, you will need to talk to your insurance company about rental property insurance. Rental property insurance not only protects your property investment against fire, vandalism, and other physical losses, but it also provides valuable liability coverage. Speak to your insurance broker for specific information.

What if you have a boat?

If boating is part of your rustic lifestyle, you will want to make sure you have an appropriate insurance package. Not only do you need to protect your vessel against loss or damage, but you need to protect yourself from liability - make sure you know the rules of the water and operate your boat accordingly or you may invalidate your insurance.

While many insurers offer basic insurance protection for boats at a low cost, there can be huge differences in what is actually covered. Check out the options.

Recreational vehicles

Motorcycles, all terrain vehicles, snowmobiles, trailers, and motor homes are all covered under your auto insurance.

Fire insurance

If you are out in the country insurance against fire can be expensive if you are far from fire hydrants and the nearest fire station is miles (kilometers) away. But as expensive as it may be, you need that protection or you could stand to lose everything and not be able to replace it.

Burning wood as either a primary or secondary heat source can also impact your insurance rates, especially if you have a free-standing wood stove.

Even the materials your home is constructed of will have an impact on your rates. For instance, a metal roof will mean lower rates than a shingle roof because it's less flammable.

Coverage

Make sure your coverage is adequate and up to date. As property and construction costs rise, replacement or rebuilding costs also rise, so you need to make sure your insurance reflects the real value of your property.

What kind of insurance do you need?

• Actual cost depreciates the value of your property as it ages. So if you made a claim, you would receive funds to cover the depreciated value only. This is the least expensive insurance but I wouldn't recommend it.
• Replacement cost insurance covers the cost of actually replacing property up to a set maximum, which should be stipulated in your policy.
• Guaranteed replacement cost will cover what it actually costs to replace your loss, even if it's more than the face value of the coverage. This is the most expensive insurance, but the most comprehensive.

Buyer beware

Shop around to get the best coverage and the best rates for your country insurance. Know what you are covered for because if the worst should happen, the last thing you need is a fight with your insurance company. Having the right insurance can bring you peace of mind, and in the event of a disaster, a lot more.