Owning a vacation home can be an investment that will provide you and your family with a private and comfortable area to visit when you are wanting to get away. As with your primary residence, it is important to make sure that this house is thoroughly insured to keep it safe. However, the insurance needs of a vacation home can be slightly different than what your primary residence will require.
Appreciate The Need For A Specialized Vacation Or Second Home Insurance Policy
An important stipulation for standard home insurance policies is for the holder of the policy to primarily live in the house. This is done as there is an assumption that individuals will be more likely to take good care of their primary residence and that they will be better able to assess when problems or damages are needing to be repaired. For these reasons, individuals with vacation homes will need to purchase a specialized policy that is intended to cover second or other homes where an individual will only sporadically occupy.
Determine Whether You Plan To Rent Out The Vacation House When You Are Not Using It
It is a common practice for individuals to use their vacation home as a source of rental income when they are not wanting to use it. This can be a lucrative way to help offset the ownership costs of the property. However, it can increase the insurance needs for the house as there will be a need to account for the higher risk of these individuals damaging the house during their stay as well as the elevated liability concerns that can come with a property rental. An insurance agent will be able to assist you with choosing a vacation home policy that is suitable for a property that will be rented to short-term occupants. While these policies are likely to have higher premiums, it is essential for protecting yourself from financial liabilities and many communities require this coverage for short-term rental properties.
Thoroughly Research The Threats To Your Vacation Home
Unfortunately, individuals that own vacation homes may not always be aware of the numerous natural disasters and other threats that the house may face. Before choosing to buy an insurance policy, it is wise to spend some time thoroughly researching the local threats to the home. An example of this can be reviewing the local history of wildfires or flooding to determine whether you will need to purchase separate coverage to account for these significant threats to the home.
For more information, consider contacting a company to get more information on your home insurance policy.Share