Insurance for sober living homes in the United States is known to cost around $3,500 to upwards of $10,000; however, you will want to note that the exact cost of insurance for these facilities is dependent on certain critical factors.
Owing to that, it’s often advised you reach out to insurance providers directly to ensure you obtain accurate quotes as regards your specific situation or the size of your sober living home.
Factors That Determine the Cost of Insurance for Sober Living Homes
Even for a sober living home, keep in mind that locations that are known for their high crime rates or a history of substance abuse problems will be considered riskier by insurance providers, and this will warrant more expensive premiums.
Aside from that, note that state-related regulations and legal requirements will also determine the cost of insurance. For instance, you will find that a good number of states mandate certain types of coverage, and this will need to be taken into account when considering the overall cost.
Facility Size and Capacity
Facilities with more residents will have to contend with higher liability risks, and this will in turn lead to increased premiums.
Insurance providers are known to evaluate the number of residents, staff-to-resident ratios, as well as the overall size of the facility to come up with the right coverage as well as associated costs. Keep in mind that sober living homes with more amenities or specialized services will also have different insurance costs.
Coverage Types and Limits
Also note that the level of insurance coverage as well as the limits chosen by a Sober Living Home will as well determine how much they are expected to pay.
In the United States, some of the coverage these facilities require include general liability, property insurance, professional liability, and workers’ compensation.
However, note that any sober living home that goes for comprehensive coverage with higher limits will indeed expect higher premiums.
Also, note that the exact needs and risk profile of each Sober Living Home will be the yardstick to use when choosing coverage types and limits, and this will impact the overall cost.
Safety and Security Measures
Putting in place certain crucial security measures, including surveillance systems, trained staff, as well as proper facility maintenance, will indeed have a good impact on insurance costs by reducing the possibility of claims.
Also note that sober living homes that invest in comprehensive safety protocols will also be qualified for discounts, whereas sober living homes that are void of adequate security measures might have to deal with higher premiums.
Claims History and Risk Management
Note that a facility with a history of frequent or severe claims will be categorized as being of higher risk, and this means higher premiums.
In the same way, the right risk management practices as well as a clean claims record will give room for more conducive insurance rates.
Creating and sustaining a vibrant focus on preventing incidents as well as quickly dealing with issues will as well contribute to lower insurance costs over time.
Are Sober Living Homes Covered By Insurance?
Most often, insurance in the United States will not offer coverage for sober living homes. As per the Affordable Care Act (ACA), insurance providers are mandated to cover 10 valid and important benefits, and this could indeed include treatment for substance use disorders.
Howbeit, even though sober living homes are well known for the supportive and conducive environment they offer to help people recover from addiction, you have to understand that they are not considered treatment facilities.
As such, whether insurance covers sober living in the United States will more or less be dependent on the exact insurance policy as well as the state where the policy is issued, among other factors.