You built an off-grid “Earthship” in New Mexico. It’s a sustainable marvel made of rammed-earth tires, glass bottles, and adobe. A massive flash flood sweeps through the arroyo, severely damaging the foundation and flooding the interior.
The Brutal Truth: Why Standard Policies Deny This Claim
Standard carriers flat out refuse to write policies for Experimental Construction. Actuaries have no data on how rammed-earth tires withstand floods, earthquakes, or fires. Furthermore, because you are entirely off-grid (no municipal water for fire trucks, no municipal power), your Fire Protection Class is likely a 9 or 10, making you uninsurable in the admitted market. Finally, flood damage is always excluded from homeowners policies, requiring a separate FEMA policy that you likely cannot get for an unclassified structure.
How to Actually Protect Yourself (The Fix)
- Use the E&S Market (Fair Plan): You will likely need to buy a basic fire policy through your state’s FAIR plan (the insurer of last resort) or an E&S carrier like Lloyd’s.
- Self-Insure: Many Earthship owners simply self-insure. Put the $3,000 a year you would spend on premium into a high-yield savings account for repairs.
The Claims Adjuster’s Secret
If you do get a policy, we inspect the solar battery bank. If the lithium-ion batteries are stored inside the living space rather than a detached, fire-rated bunker, underwriters will cancel the policy immediately upon inspection.
The Verdict (TL;DR)
The Risk Level: Extreme (Almost entirely uninsurable in the standard market). The Solution: Seek Surplus Lines coverage or prepare to self-insure. Estimated Cost: Very high premiums for minimal Actual Cash Value coverage.