As barndominiums become increasingly popular for their affordability, durability, and unique design, homeowners are quickly discovering the importance of having the right insurance coverage. While barndominiums combine the rustic charm of a barn with the comfort of a traditional home, their unconventional structure and mixed-use nature can create challenges when it comes to insurance.
In this post, we’ll break down everything you need to know about barndominium insurance, including what’s typically covered, what’s not, and how to make sure you’re fully protected.
What Is a Barndominium?
Before diving into the specifics of insurance, let’s quickly define what a barndominium is. A barndominium, often shortened to “barndo,” is a metal or steel building that combines residential living space with areas typically used for storage, workshops, garages, or even horse stalls. Some are converted barns, while others are custom-built from the ground up.
Because barndominiums blur the line between a home and a commercial or agricultural structure, insurance can be more complex than for a traditional house.
Why Barndominium Insurance Is Unique
Insuring a barndominium isn’t as straightforward as insuring a traditional wood-framed house. These structures may use non-standard materials, have mixed-use spaces (residential + business or storage), and might not be classified the same way by every insurer.
Some key reasons barndominium insurance differs:
- Metal or pole barn construction may not be included in standard homeowner policies.
- Outbuildings and workshops may need separate or extended coverage.
- Location (especially rural or agricultural land) can affect insurability.
- Custom features like solar panels, rainwater collection, or large garage areas may complicate coverage.
What Does Barndominium Insurance Typically Cover?
Most barndominium insurance policies fall under the dwelling coverage category, similar to homeowners insurance. Here’s what is typically included:
- Dwelling Coverage (Structure Insurance)
This protects the actual structure of your barndominium from perils such as:
- Fire and smoke damage
- Storms (wind, hail)
- Lightning
- Theft or vandalism
- Falling objects (like trees)
- Water damage from burst pipes (not flooding)
- Personal Property Coverage
This covers your personal belongings inside the barndominium, such as:
- Furniture
- Electronics
- Clothing
- Appliances
- Tools (used for personal, not business, purposes)
- Liability Protection
If someone is injured on your property or if you accidentally cause damage to someone else’s property, liability insurance helps cover legal fees, medical bills, and damages.
- Additional Living Expenses (ALE)
If your barndominium becomes uninhabitable due to a covered peril (like fire), this pays for temporary housing, meals, and other costs while repairs are made.
- Detached Structures
Some policies include limited coverage for structures like:
- Sheds
- Detached garages
- Carports
- Barns (if used for personal, not commercial/agricultural use)
What’s Not Typically Covered by Standard Insurance
Not everything is automatically included in a standard barndominium policy. Here’s what you may need to add separately or may be excluded:
- Flood Damage
Flooding due to natural disasters is not included in standard policies. You’ll need a separate flood insurance policy through FEMA or a private insurer if your barndominium is in a flood-prone area.
- Earthquake Damage
Similar to floods, earthquakes require a separate policy or endorsement.
- Wear and Tear
Normal aging, wear and tear, rust, mold, and insect damage are generally not covered.
- Agricultural Operations
If you’re using your barndominium to house livestock, run a farm, or store large farm equipment, these activities may not be covered under a homeowner policy. You may need farm or business insurance.
- Business Use
If part of your barndominium is used for a home-based business (workshop, photography studio, mechanic shop, etc.), personal policies may not cover equipment or liability. You’ll need commercial insurance or a business endorsement.
- Detached Barns or Workshops
If your property includes a separate barn or workshop not attached to the main structure, coverage may be limited unless you add a detached structure endorsement.
How to Get the Right Barndominium Insurance
- Work With an Experienced Agent
Look for an insurance agent or broker who has experience with non-traditional homes, such as barndominiums, log homes, or manufactured homes. They can help you navigate options and tailor your coverage.
- Get a Proper Appraisal
Ensure your barndominium is professionally appraised so the insurer has an accurate value of the structure and your belongings. Underinsuring can leave you vulnerable in the event of a total loss.
- Disclose All Uses
Be honest about how the barndo is used—whether it’s purely residential or includes workspace, rental space, agricultural activity, or storage for vehicles. Misrepresentation can lead to denied claims.
- Bundle When Possible
Bundling your home, auto, and other policies with the same provider can save money and simplify the claims process.
Optional Add-Ons You Might Consider
Depending on your barndominium and lifestyle, the following endorsements may be wise:
- Equipment Breakdown Coverage: For HVAC systems, well pumps, and more.
- Water Backup Coverage: Protects against sump pump or drain backup.
- Solar Panel Coverage: If you’ve installed solar energy systems.
- Increased Limits on Tools or High-Value Items: Especially important if you have expensive tools or home-based business equipment.
Cost of Barndominium Insurance
The cost varies depending on several factors:
- Location (state, county, proximity to fire services)
- Size and value of the barndominium
- Construction materials (steel frame, metal roof, etc.)
- Use of the structure (residential vs. mixed-use)
- Additional features (barns, shops, solar panels)
- Credit score and claim history
On average, barndominium insurance can range between $1,000 and $2,500 annually, though some owners pay more or less depending on customization.
Final Thoughts: Protect Your Barndo the Right Way
Barndominiums offer a flexible, stylish, and cost-effective way to live, especially in rural settings. But their uniqueness makes it essential to get the right kind of insurance coverage.
Don’t assume your policy automatically includes everything you need. Instead, review your specific circumstances with an insurance professional, consider the optional add-ons, and ensure your home, belongings, and liability are well protected.
Remember: a well-insured barndominium isn’t just a building—it’s peace of mind.
Ready to Insure Your Dream Barndominium?
If you’re in the process of building or buying a barndominium, talk to local insurance providers early. Provide detailed floor plans, usage information, and estimates to make sure you get a policy that reflects your needs. Being proactive will save you money—and potentially a major headache—down the road.