When it comes to insuring a vacation home, the insurance landscape can look slightly different from that of primary homes. While the risks are relatively similar, you’ll find that some added perils come with vacation homes. These risks vary with how you intend to use your second home.
If a vacation home is often left vacant for long periods, the chances of burglary, vandalism, and unnoticed damage may rise considerably. Moreover, the house’s location can expose it to further damages such as flooding, fires, or wind damage, which may not be attended to in due time considering the vacant status of the house. Insurance providers take all of this into consideration when determining your policy premium. You’ll likely be offered a comprehensive insurance policy in order to cover all risks adequately. Be sure to clarify whether you intend to keep the house vacant for extended periods or visit regularly. Vacant home insurance and vacation home insurance, while similar, are not the same.
Intentions of renting
If you’re considering renting your vacation home or allowing others to stay in it, your policy will look different. Aside from protecting your second home structure, it’s a good idea to ensure that you have enough personal liability coverage. An Umbrella insurance policy can cover any claims against you due to injury or damages that occurred on the property. Be sure to look into liability coverage, which covers any personal injuries sustained by someone while they’re on the property. This policy could also include medical payments coverage.
Moreover, rent-loss insurance could be a worthwhile investment considering that it covers any financial losses amassed during times when rent cannot be paid (damages, natural disaster, and much more.) It is also worth looking into a landlord policy, which can cover you for damages while even replacing lost income if the property is being rebuilt or repaired following a covered loss.
Do I really need to insure my vacation home?
While not strictly necessary, it’s highly recommended to get coverage for your secondary-home. Damages to a vacation home, whether first or second-party, can be financially crippling. Additionally, if your vacation home has a mortgage, your lender may require property insurance as a condition of borrowing.
How much will my insurance policy cost?
Depending on several factors such as the home’s age, condition, and location, the amount you’ll pay for a homeowners insurance policy can fluctuate. However, overall, expect to pay higher than with regular home insurance.
The best way to get more information on vacation home insurance is to ask a licensed agent in our office. We can assist you with assessing your insurance needs and provide you with some quotes from several of the top insurance companies.
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Our licensed staff is ready to help you get multiple vacation home insurance quotes. Because we’re an independent insurance agent we can shop from multiple insurance companies to help you find the right coverage at the right price.
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