With the government’s plans to increase the size of planning permission exempt garden-homes to 45sqm, a barrier for the purchase of modular homes is being lifted. With modular being more accessible than ever before you might be considering having one installed. If you do there’s a few things you need to know about how it affects your insurance.
So, let’s make it a bit simpler and look at some of the ways Home Insurance works with Modular Homes built in a properties garden.
In an effort to remove a large barrier to people who are looking to place a modular home on their property, regulations around planning permissions are to be relaxed. In the past modular homes required planning permission, structures up to 45sqm will no longer need to seek it. Exactly what the regulations will look like beyond that remains to be seen, however.
It seems structures will still need to be registered and comply with building regulations and thst there will also need to be a remaining garden area of at least 25sqm. Until the exemption is more concrete this is speculation however and so subject to change.
Whatever the specifics are it will be important to have an idea how insurance might work.
Needing a separate policy for your outbuilding is unlikely, but not impossible. Many underwriters cover outbuildings in their policies. However, as these structures tend to be of non-standard construction (and in many cases likely to be rented to family) then you will probably need a non-standard home insurance policy.
However, this is a bit of a grey area, depending on the underwriter and the exact conditions of the exemption – i.e. will exempted structures have their own postal address- you may need to seek an entirely separate policy. It may also depend on the amenities of the structure, if it is an entirely self-sustained annex, then it is more likely to need its own insurance. However, if it shares a communal kitchen and/or bathroom with the main structure then it may be covered under your current insurance.
Our advice is to speak with your current insurer to see how they handle annexes and granny-flats. You can also ask around with other underwriters, it might not necessarily be cheaper to add a modular home onto an existing property.
Because Insurance premiums are based on calculated risk, underwriters are wary of insuring homes that they have less data on, or where the data shows a significant increased risk. These homes are then classed as non-standard homes for insurance purposes.
For modular homes the main issue is that insurers don’t have as much data on them as they do on bricks and mortar homes that make up most homes currently in Ireland. While this might change over time, you will currently be paying non-standard rates.
Ultimately, we can’t make this decision for you. We’re here to tell you everything you need to know about how a planning exempt annex can affect your insurance. But we don’t want to scare you either. Non-standard rates do tend to mean higher premiums. But you will often pay significantly less for a modular home to be built than a traditional home, as well as achieving great BER scores and incorporating other features that can make them cheaper to run.
You will need to do some research to find out what will work best for you. But no matter what you choose to do it’s important to make sure you stay knowledgeable about your home insurance. We’re here to have your back and make sure you get the best deal on your insurance, whatever path you decide.
