Jamie is a meticulous researcher who has published 2,000+ personal finance articles. Her expertise is trusted by major brands like Bankrate and Rocket Mortgage.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Living off-grid can come with many benefits, including reduced energy costs, a smaller carbon footprint, and the potential to be self-sufficient. But living off-grid and relying on clean energy can also make it more challenging to find homeowners insurance.
Here’s what you need to know about how off-grid home insurance works and how to find the best home insurance coverage for your situation.
Quick Facts
A standard home insurance policy for your off-grid home includes dwelling, liability, and medical payments coverage.
You may need to purchase additional water backup, alternative energy system, or service line coverage for an off-grid home.
You can find off-grid home insurance by considering your coverage needs, researching different insurance companies, and shopping around.
What is off-grid home insurance?
Living off the grid means different things to different people, but it typically refers to living in a home not connected to the main electrical grid or public utilities. These homes rely on reusable power sources like solar systems or wind turbines. Many people choose this lifestyle to decrease their carbon footprint.
It’s still important to protect your home with homeowners insurance if you’re living off-grid, especially if you’re using it as your primary residence. Off-grid home insurance is similar to traditional homeowners insurance and will cover many of the same perils, like fires, storm damage, and burglaries.
You may need additional endorsements to cover the specific risks your off-grid cabin or home faces.
If your home is in a remote location, it may be harder for you to access emergency services like an ambulance or the fire department. If you install the majority of your home’s systems yourself, you may be at higher risk for property damage. You may also be an easier target for burglaries or vandalism. Having adequate homeowners insurance will provide financial protection if the worst-case scenario does happen.
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What off-grid home insurance covers
Insurance companies don’t sell special off-the-grid home insurance policies. Instead, you’ll buy a standard homeowners insurance policy and add any other insurance endorsements you might need.
Here’s what standard home insurance covers:
Dwelling coverage
Dwelling coverage pays for damages to your home, any attached structures, and fixtures. You may want to increase your dwelling coverage if your home’s materials are more costly to repair or replace.
Other structures coverage
Other structures coverage pays to repair or replace any fences, sheds, or other structures located on your property.
Personal property coverage
Personal property coverage reimburses you for items inside your home, like clothing, furniture, and appliances.
Loss of use coverage
If your home is uninhabitable, loss of use coverage pays for additional living expenses like food or a hotel room.
Liability coverage
Liability insurance protects you from financial losses if someone incurs an injury on your property. Living off-grid tends to come with more risks, and this coverage will protect you from incidents involving contractors or guests.
Medical payments coverage
Medical payments coverage pays the medical bills for anyone who has an injury on your property.[1]
Do you need additional coverage for off-grid home insurance?
You may want to consider the following additional coverages for your off-grid home:
Water backup coverage: If you rely on an alternative water system, you might considerwater backup or sump-pump coverage. This endorsement protects you from water damage caused by a sewer or sump pump backup.[2]
Alternative energy system coverage: If you use alternative energy sources, you may want to purchase an endorsement in case this equipment breaks down.
Service line coverage: A standard homeowners insurance policy doesn’t include service line coverage. This endorsement covers the cost of replacing water pipes and septic systems on your property, which could be more vulnerable in remote areas.
Factors affecting off-grid home insurance cost
Several factors affect the cost of home insurance for your off-grid home. Learn more about some of the biggest factors affecting the cost of coverage for off-grid home insurance.
Location
The location of the off-grid home affects your insurance costs, especially if the location poses a special risk factor. For example, living in an area where you’re at an increased risk of fire damage or other natural hazards will increase the cost. And homes located in areas without fire protection will have higher insurance costs.[3]
Value and construction of the home
The value of your home and the construction materials used also affect the cost of home insurance. For example, frame houses tend to cost more than brick homes and newer homes may qualify for a discount from the insurance company. Some insurers may be unwilling to insure older homes or only offer limited coverage.
Types of energy systems used
The type of energy system you use can also affect the price of home insurance. For example, many off-grid homes rely on solar panels as an energy source. But some smaller insurance companies don’t insure homes with solar panels. Most major insurance companies do, but you may need to purchase additional coverage.
Self-sufficiency levels
The level of your home’s self-sufficiency also influences the cost of off-grid home insurance. If you rely on wells, sump pumps, or rainwater collection systems, you may pay more for insurance. That’s because these systems have a higher risk of expensive repairs, contamination, or failure.
Common challenges in insuring off-grid homes
Insuring off-grid homes can be challenging due to the unique risks that come with off-grid living. For example, if you custom-built your off-grid home, it may not adhere to standard construction practices.
Living in a remote location can make your home more vulnerable to perils like fires, natural disasters, or theft. Your location can also make it harder for emergency services to reach you in an emergency.
It can also be hard for home insurance companies to determine the replacement value of off-grid properties and structures, particularly if you built the home yourself. This can cause you to have insufficient or too much coverage, costing you more money in the long run.
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How to buy off-grid home insurance
Buying off-grid home insurance can be more challenging, but it’s not impossible. Here are four steps you can take to find the right coverage as an off-grid homeowner.
Consider your coverage needs. Since off-grid homes may require additional dwelling coverage or endorsements, spend time thinking about your coverage needs. Consider any risks you face by living off-grid and how insurance can mitigate these risks.
Research different companies. Different insurers offer different types of coverage and endorsements. For example, not all insurance companies offer water backup coverage or service line coverage. Once you understand your coverage needs, look for insurers that offer policies that fit. For example, State Farm offers water backup and sump pump coverage.
Shop around. Comparing quotes from at least three different insurers is the best way to find the price and coverage that’s best for you.
Talk to an insurance agent. It’s a good idea to speak to different insurance experts and ask if they can recommend any endorsements that will protect your home.[4]
Off-grid home insurance FAQs
The following information can help answer your remaining questions about off-grid home insurance.
Can I insure my off-grid home?
Yes. You can buy home insurance for your off-grid home. This typically involves purchasing a standard home insurance policy, and you may also want to buy endorsements to offer additional protection.
Will installing solar panels affect your home insurance policy?
It might, but it really depends on your insurance company. Most major insurers include solar panel coverage as part of standard homeowners insurance, but you may need to increase your dwelling coverage.
Is it legal to live fully off-grid?
Yes. It’s legal to live off-grid, but you may need to adhere to certain state legal requirements. For example, you may need a permit if you’re planning to build your own home, and some states have strict rainwater harvesting laws.
Jamie Johnson is a Kansas City-based personal finance writer whose work has been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance. For the past six years, she's dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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