Top 5 Mistakes Tennessee Barndominium Owners Make (and How to Avoid Them)

Barndominiums often feature metal construction combined with traditional home elements, offering a unique blend of barn and living space. Barndominiums (or “barndos”) are an increasingly popular housing trend in Tennessee, offering homeowners an affordable and spacious alternative to conventional homes.  However, owning a barndominium presents unique challenges, particularly when it comes to insurance. Many barndo owners unknowingly expose themselves to risk by treating their hybrid barn-homes like any other house. Below, we highlight the top five mistakes barndominium owners make and how to avoid them to keep your investment safe.

1. Assuming Standard Home Insurance Covers Everything – One of the biggest mistakes is thinking a barndominium can be insured just like a cookie-cutter suburban house. Barndos blends residential space with barn-like structures, and insurers unfamiliar with them may misclassify the building or overlook important coverage areas. For example, some insurers might initially view your barndo as an agricultural barn rather than a full-time residence, leading to coverage gaps or even policy denials. If your policy isn’t tailored to a barndominium, you could find out too late that part of your home isn’t covered.
   
   How to avoid it: Work with an insurance provider experienced in barndominiums. Make sure your agent clearly identifies the structure as your primary home (not just a shed or farm building). An insurer that understands barndos will provide a homeowners policy or special endorsement that covers both the living quarters and the barn/garage areas as a single insured dwelling. Don’t settle for one-size-fits-all insurance – if your insurer seems confused about whether it’s a house or a barn, that’s a red flag to find someone more knowledgeable.

2. Forgetting to Insure the “Barn” Part and Mixed Uses – Barndominiums are beloved for their mixed-use design – you might have a cozy home on one side and a workshop, garage, or even horse stalls on the other. A common mistake barndo owners make is not fully disclosing these dual uses to their insurer, or assuming the entire structure is automatically covered. In reality, many standard homeowner policies exclude or limit coverage for business activities, farm equipment, or livestock on the property. Some insurance policies might even only cover the designated living area of the barndominium and not the attached workshop or barn section. For instance, if you’re storing a tractor or running a small business in your barndo, a basic home policy might not cover damage to that tractor or any liability from the business operations.
   
   How to avoid it: Be upfront about all the ways you use your barndominium. Do you have expensive tools or farm equipment in the garage? Are there horses or livestock in a portion of the building? Do you do woodworking or auto repairs as a side business in your barn? Tell your agent, and ensure your policy is tailored with the right endorsements or inland marine coverage for those items. A specialized barndominium insurance plan (like the ones Hutsenpiller Insurance offers) will cover both your home and the barn elements under one roof. It’s also wise to take an inventory of your belongings – from the tractor in the barn to the furniture in the living room – so you can get the right personal property coverage. The goal is to leave no part of your barndo or your possessions uninsured just because they don’t fit the “typical house” mold.

3. Underestimating the Replacement Cost of Your Barndo – Barndominiums often cost less to build per square foot than traditional homes, but that doesn’t mean you should insure them for rock-bottom values. A big mistake is undervaluing your barndo when choosing your dwelling coverage limit. Barndos can have unique construction features – like large open floor plans, high ceilings, custom workshops, and extensive steel framing – which might actually be expensive to replace after a disaster. Additionally, the mix of home and barn means you’re covering a lot of square footage. Some owners make the error of insuring only the finished living area and neglecting the cost to rebuild the entire structure (barn and all). If a tornado or fire wipes out your barndominium, you don’t want to discover that your insurance payout falls far short of rebuilding what you had.
   
   How to avoid it: Work with an insurance expert to accurately appraise your barndominium’s value. Consider the cost of materials (steel prices, for example, can fluctuate) and the labor needed to rebuild such a hybrid structure. It’s often wise to opt for replacement cost coverage (which pays to rebuild new) rather than actual cash value (which deducts depreciation). Ensure your dwelling coverage limit accounts for all enclosed square footage – living spaces, garage, workshop, etc. A knowledgeable agent (like those at Hutsenpiller Insurance) will understand the valuation challenges and help determine the right coverage amount so you’re fully protected. It might cost a bit more in premium to insure the full value, but it’s well worth it if you ever have to rebuild your dream “barn-home” from the ground up.

4. Ignoring Location-Specific Risks (and Needed Coverages) – Barndominiums in Tennessee are often built on rural lands – think a wide-open countryside in West TN or a hillside in East TN. A mistake some barndo owners make is assuming standard insurance will cover every peril, and overlooking extra coverages needed for their location. In Tennessee, tornadoes are a real threat in many areas, and flooding can be a concern if your barn sits on low-lying farmland or near a creek. Yet, a standard homeowner’s policy covers wind damage from tornadoes but won’t cover flood damage. Rural properties also might be far from fire hydrants or fire departments, which increases fire risk. If you don’t account for these factors, you might be underprotected. For instance, an owner might skip flood insurance because “we’re not in a flood zone,” only to find a surprise flash flood wreaks havoc (floods aren’t limited to official floodplains). Or they carry bare minimum liability coverage, not realizing that inviting friends to rustic bonfires or ATV rides on the property could be higher-risk activities.

   How to avoid it: Assess the specific risks associated with the location of your barndominium. Is your region prone to tornadoes or severe windstorms? Ensure your policy doesn’t have wind/hail exclusions and consider higher dwelling coverage if rebuilding costs could spike after a widespread storm. Are you near a river or in a flat rural valley? Strongly consider adding a flood insurance policy, even if optional – remember, standard home insurance won’t cover flooding, and Tennessee has its share of flash floods. Also, consider wildfire or winter storm risks if you live in wooded or high-elevation areas. Additionally, ensure you have sufficient liability coverage. Barndos encourages an active, outdoorsy lifestyle – maybe you host big gatherings in your barn or let friends hunt on your acreage. Extra liability protection (and even an umbrella policy) can be a lifesaver if someone gets injured on your property. The key is to tailor your insurance to your location: a good local agent will help identify these needs, whether it’s adding flood coverage, higher liability limits, or ensuring your policy accounts for longer emergency response times common in rural areas.

5. Choosing the Wrong Insurance Partner (Lack of Barndo Expertise) – Finally, an underlying mistake that can lead to all of the above problems is not working with an insurance agent/company that understands barndominiums. Barndo owners who simply call their usual insurance 1-800 number may end up with an agent who’s never insured a barndominium before. The result? Frustration, improper coverage, or inflated premiums. We’ve heard of owners being told their home “doesn’t qualify” for regular homeowners insurance, or getting charged high rates because the insurer treated the barndo as a commercial building. If your insurance representative is scratching their head at your 2,500 sq. ft. barn-home with attached workshop, you might be in for a bumpy ride.
   
   How to avoid it: Seek out an independent insurance agency with experience in non-traditional homes. An experienced agent will know which companies are “barn-friendly” and how to present your home to underwriters to get you properly covered at a fair price. For example, Hutsenpiller Insurance has multiple carrier options and has insured everything from historic farmhouses to modern barndominiums. That means they can shop around to find an insurer comfortable with your hybrid home (and thus likely to offer a better rate and comprehensive coverage). The independent agency advantage is huge for Brandos, since not every insurer is keen on unconventional construction. In short, do your homework on your insurance provider. Read reviews, ask fellow barndo owners for recommendations, or contact a known barndominium insurance expert in Tennessee. Partnering with the right agent from the start will save you headaches and ensure that none of the unique aspects of your barndo are overlooked in your policy.

Avoiding Barndo Insurance Pitfalls: Your barndominium is more than just a home – it’s a unique blend of living space and functional space that deserves specialized protection. By steering clear of these common mistakes, you can enjoy the country lifestyle your barndo offers with peace of mind. The bottom line is to be proactive and thorough: get the right coverage for all parts of your barndominium, adjust for your local risks, and lean on experts who know this terrain. If you’re unsure about your current coverage, don’t wait to find out the gaps the hard way. Sit down with a knowledgeable agent (feel free to reach out to Hutsenpiller Insurance) to review your policy. By doing so, you’ll ensure your dream “barn-home” in Tennessee is fully protected against whatever life might throw its way. For a deeper dive into barndominium coverage and how to protect these unique homes, check out our comprehensive guide on "Insuring Your Barndominium in Tennessee" – it’s packed with insights to help you secure the perfect coverage for your pride and joy.