A second home is just as much an investment as your primary home. No matter how you use it, you have invested a substantial amount of money in its purchase and maintenance. You need to purchase an insurance policy that you can count on to ensure sufficient coverage if anything should happen to your property. Understanding how to insure your property is important.
Do I Need a Second Policy to Cover My Vacation Home?
While your primary homeowners’ policy may cover liability claims from a second home, you will want to purchase an additional homeowners’ policy to cover your second home’s structure and the possessions you have there. If you have a loan on the property, the lender will require some form of insurance to ensure that their interests are fully protected. It’s important to know what the lender’s requirements are so that you have sufficient coverage.
Does Your Second Home Carry Risk?
Second homes and vacation homes are more expensive to insure. There are a few reasons for this. First, the location may put your home at risk. Waterfront homes, for example, may be more prone to flooding. Secondly, if the property is only used for a few months or weekends a year, it will sit vacantly. Vacant homes are often the targets of vandals and burglars.
Limited Coverage for Your Second Home
Because most people don’t live in their second home more than a few weekends out of the year, the coverage you obtain may be rather limited. Most of your valuables are in your primary home, so your second home may only be covered for specifically named perils. This can mean your insurance coverage will only cover you for theft, fire, or storm damage. Limited perils coverage also protects other structures on the property.
Increasing the Security for Your Vacation Home
Considering an umbrella policy for your second home would ensure that you always have the coverage you need. If you store a boat on the property, buy boat coverage. Flood insurance coverage should be considered if your second home is near a river, lake, or another water source. Knowing what perils are possible will give you a good idea of what types of insurance you need.
Saving Money on a Second Policy
An insurance policy on a second home will qualify for certain discounts, just like the policy on your primary home. Bundling all of your policies and raising your deductibles are excellent ways to lower your premiums. Adding exterior lighting and a DIY home security system will decrease the cost.
Insurance for Using Your Second Home as a Rental
If you choose to use your second home as a rental property, purchasing a policy that will protect your investment is in your best interest. Most homeowners’ policies will not extend coverage for damages caused while a property is rented.
If you’ve purchased a second home, you will need an insurance policy to cover it. Contact our agents at Burton A. Harris Insurance Agency for more information on the right types of coverage you may need. We have years of experience in helping our clients find the right insurance for their primary homes, vacation homes, and rental properties.