Tree House Coverage (Pics Included)

[smg44]

Very recently a customer who built a tree house in southwest Missouri came into my office seeking coverage on it. It was built this year, and it has electricity, running water and a forced air electric climate control system. It was very nicely built.I am having a terrible time trying to find a carrier that would insure him, here in Missouri. In fact, every time I call an underwriter I get a long hearty laugh, followed by a "let me look at the manual" followed by "Good Luck!" He rents his home so I can't list it as another location on his homeowners policy. Does anyone have any ideas?

 

[Raul Vela Jr]

Hi ... I am also an insurance agent myself and thinking wouldn't "other structures" of that properties policy cover that treehouse? The Homeowners policies I create recognize that coverage to protect any structures not attached to the home, including sheds and so forth.

Great structure though ... a lot of creativity. All I had as a child was Big Wheel. Ha Ha


Enjoy your day sir.

RV

 

[smg44]

Unfortunately RV, it is the only structure on the property and technically its the only structure he owns.

It is pretty neat tree house, my dad started to build me one when I was a kid but it ended up being a shed (: |)

 

[myfakename]

Thats a hell of a building to build on a lot/home you dont own...

 

[smg44]

Him and his wife own the lot, but there is no other structure on the lot. The house he rents is outside of Kansas City (about 150 miles north of the tree house)

 

[FEX Quotes]

This risk is screaming surplus lines. A few MGAs you can reach out to..

Stuckey & Company Specialty Insurance Program Managers
Risk Placement Services, Inc.
AmWINS Group, Inc. | Home

 

[smg44]

Yeah, I figured that out after calling my contact at our Insurance Alliance. I have submitted the risk to a brokerage. Thank you do much though, that will help in the future. Occasionally I get some eccentric individuals. They are all nice people, they just do things a bit differently.

 

[InsCommentary]

I once got this question from a Wyoming agent:

"How do you calculate the replacement cost for an earth home?"

My response:

That's an excellent question. I don't think that traditional estimation methods would work...not that they're particularly accurate even for traditional homes to begin with. Certainly, the already laughable room count method wouldn't work since every room would count as a "den."

While studies show that most homes are undervalued, our guess is that an earth home could be replaced dirt cheap. And, the really nice thing about an earth home is that you don't have to worry about termite damage which is excluded by HO policies. Of course, gophers, prairie dogs, and errant tunneling prison escapees are another matter but, since they are all rodents, they are excluded by the HO-3.

We recommend that you consult with someone who has expertise in building these types of homes...either a specialty building contractor or an undertaker.

 

[smg44]

InsCommentary,

Thank you for the reply. Odd thing is, the insureds wife does work in the funeral business. It appears that the structure is going to be done as AVC. I am waiting for hear back from our surplus lines agent, and I'll review the proposal when I get it.

Regarding earth homes. Most of our carriers suggest that we write the policy as we would with a conventional home. So for instance, a earth home with a finished attic would be considered a cape with a slab foundation with a masonry exterior. Being in Tornado Alley, they are very popular around here.

 

[BADTROUT]

Earth Homes: Check for earth movement and subsidence coverage/exclusions... Seriously though on the tree house...

Power?
Heat?
Water?

I googled it (im sure you have too) but all of the positive answers point back to another home on the property... You got a tough one here.