Maybe you have a second home, or have invested in a vacation home. Either way, secondary (vacation or seasonal) home insurance is meant for properties that are not the primary residence of the homeowner. This type of insurance is designed for properties that are not occupied on a year-round basis.
It is important to understand your coverage options and requirements when it comes to insuring your secondary home. Policies can vary depending on your provider and you want to make sure you take the time to customize your coverage to your unique needs. Staples & Associates can help you find the right coverage to protect your property, personal belongings and the people who use it.
No two homes are the same which means the differences between your primary home and your secondary home can be pretty significant. To protect the bricks and mortar of your second home, you’re likely to need a separate home insurance policy. Property coverage will protect the physical structure of your secondary home and other structures including a shed or garage on the property. The location of your secondary home can also influence your insurance rates. If your home is close to areas prone to weather events like floods, hurricanes or wildfires, your premiums will be higher.
Liability coverage provides protection when someone gets injured on your property and you are found responsible for their injuries. The coverage covers any medical or legal fees of the parties who are injured on your property. In some instances, you can extend the liability protection from your primary home insurance policy to your secondary home but it all depends on the brand of insurance your plan is written under.
Personal property coverage pays to repair or replace belongings inside your home after a covered loss, such as furniture, appliances, electronics and clothing. This is a standard type of policy but you want to make sure you customize it to make sure all of your belongings are protected.
When you have a second home, there are some risks involved that may end up costing you more when it comes to insurance for the home. Vacant or unoccupied homes are more likely to be targeted by burglars and there’s a higher risk that hazards may go undetected. When a home sits vacant it is more susceptible to damage from leaks, burst pipes, fires, mold and infestations.
When it comes to vacant homes, they become more of a risk for insurance companies which means you may pay more to insure the home.
Vacancy of a home, defined by courts and in insurance policies, is based on the amount of furniture and personal property left in the home or on the length of time it has been unoccupied.
If you’re planning on renting out your secondary home, you will need additional coverage for rental accommodations. You will also want to consider specific security measures like an alarm system, to keep your property safe when you are not occupying the space. Security features can help lower insurance premiums. Pay close attention to your coverage limits too, because underinsuring your property can lead to financial stress in the event of a claim.