Insurance and mortgage approval are different
A home can be insurable but unsuitable security for a particular mortgage product. It can also interest a lender while an insurer still needs more technical information.
The insurer considers risk
Construction and fire characteristics, rebuild method and cost, location, security, occupancy, claims history and the intended use can affect underwriting and terms.
The lender considers security
Title, planning status, valuation, permanence, durability, compliance, insurance and future marketability may affect whether the property fits the lender's policy.
“Modular”, “tiny home” and “log cabin” describe broad categories, not one standard risk. Two buildings sold under the same label may have different foundations, materials, certification and uses.
The evidence pack to assemble
Take this to the broker, insurer or lender
- Full address, folio/title information and confirmation of site ownership.
- Planning permission, exemption basis or relevant local-authority records.
- Dimensioned drawings and a clear description of permanent foundations.
- Structural system, external and internal materials, insulation and roof details.
- Irish design, Building Control and completion documentation available for the route.
- Supplier, installer and professional-team names and insurance details.
- Build price plus a professional reinstatement-cost estimate where requested.
- Intended use: main home, family occupation, long-term letting, holiday use or vacant periods.
- Heating, stove, alarms, security, wastewater and flood/location information.
- Warranties and system certificates—with their exact scope and limitations.
Send written information and retain written responses. A call-centre answer about “prefabs” is not necessarily a decision on the proposed property.
Cover the journey, not just the finished home
| Stage | Risk to clarify | Question to ask |
|---|---|---|
| Factory manufacture | Damage, insolvency, stored materials and ownership | Who owns and insures each paid stage? |
| Transport | Road/transit damage and loading | Whose transit policy responds and for what value? |
| Crane and installation | Lifting, temporary instability, weather and third-party damage | Which contractor/policy covers the lift and assembly? |
| Construction site | Fire, theft, storm, liability and partially completed work | Is a contract-works or self-build policy needed? |
| Completed occupation | Buildings, contents, liability and declared use | When will normal home cover start and what conditions apply? |
Questions likely to matter
Permanent or movable?
Foundation, connection and legal-property status can affect how the risk is classified.
What is it made from?
Frame, cladding, insulation, roof, linings and fire protection matter more than the sales label.
Is it authorised?
Planning and completion records can affect valuation, saleability and underwriting.
How is it occupied?
Main-home, rental, holiday, vacant and short-term uses can require different disclosure or cover.
Can it be rebuilt?
Reinstatement cost should reflect demolition, site access, professional fees and current replacement—not the purchase price alone.
What happens later?
Ask how alterations, extensions, a stove, letting or a change of use must be notified.
The CCPC advises homeowners to calculate buildings cover using rebuild cost rather than market value and to provide complete, accurate information. Underinsurance or non-disclosure can reduce or jeopardise a claim.
Mortgage questions to ask early
- Will the lender consider this construction system and property type in principle?
- Must the building be fixed to a permanent foundation and registered as part of the land?
- What planning, Building Control, warranty and professional certificates are required?
- Are there approved-valuer, stage-payment or monitoring requirements?
- Can the lender release funds for a factory deposit or modules not yet fixed to the site?
- What insurance must be in place before drawdown?
- Would the proposed occupancy or letting arrangement change the product?
Irish mortgage measures set system-wide loan-to-value and loan-to-income limits, but they do not require a lender to accept every property as security. Each lender still applies its own credit and property criteria.
Tell the insurer how the home will actually be used
A principal residence, a family-occupied garden dwelling, a conventional tenancy and short-term guest accommodation are not interchangeable descriptions. State the intended arrangement accurately and ask whether the policy must change if the use changes.
If you plan to receive rent, insurance is separate from tax treatment and planning. Read our Rent-a-Room Relief and garden-home guide, but confirm your own tax position with Revenue or a tax adviser.
If one provider says no
Ask for the reason rather than assuming every provider will take the same view. The issue may be the property category, missing evidence, proposed use, value, construction stage or a provider's current underwriting policy.
- Correct factual gaps—do not re-describe the property to hide a feature.
- Ask a regulated broker or other providers whether they consider this exact risk.
- Have the architect, engineer or supplier answer technical questions in writing.
- If finance is essential, make an acceptable written offer a project condition before the non-refundable deposit.
Frequently asked questions
Will a standard home-insurance policy cover a log cabin?
Only the insurer can confirm this for the exact cabin, site and use. Disclose the construction and supporting documents rather than selecting a generic house description that may be inaccurate.
Is the purchase price the buildings-insurance value?
Not necessarily. The CCPC says buildings cover should be based on rebuild cost, not market value. Rebuilding may include demolition, professional fees, site constraints and current replacement costs.
Does mortgage protection insure the building?
No. Mortgage protection is life insurance intended to repay some or all of the mortgage on death, subject to its terms. Buildings insurance covers property risks and is a separate product.
Can I rent the home after getting owner-occupier insurance?
Do not assume so. Tell the insurer and lender before changing occupancy or starting to let. Planning, tax and any Class 3A occupation restrictions also need separate checks.
Official sources
Reviewed: 6 August 2026. General educational information, not insurance, credit, legal, tax or financial advice. Product acceptance and terms are decided by the regulated provider for the exact risk and applicant.