By Dez Duran-Lamanilao
Image source: Zillow
Whether you are leasing your second home to seasonal travelers or keeps it exclusively for family use, there is always the risk of damage or loss from natural calamities, theft, and other unforeseen incidents or disasters. If you belong to the cautious group of homeowners, these threats may be enough to justify buying a second insurance for your vacation home.
What are the factors to consider when getting insurance for your second home?
- Check first your primary home insurance policy. Ask your insurer if the existing policy can cover a second home. Otherwise, you will have to purchase another insurance.
- If you are renting your home, consider a comprehensive insurance policy that will protect your property from fire, hailstorm, and any other catastrophe. The best way to deal with this is to determine first the risks to your home.
- Verify how much you need to spend if you add personal liability coverage. This will help minimize the costs if you are sued by someone following injuries obtained within your property.
- Be specific on what you want to insure. Second homes are usually covered by a more restricted type of policy called “named perils,” which means incidents not indicated in the list will likely not be covered.
- Note that vacation or second homes tend to be more expensive to insure because they are either located in an earthquake- or flood-prone (waterfront) area or would normally feature special amenities such as pools and hot tubs.
- Never misrepresent facts when talking to your insurer. This may delay or void your rights when you make claims in the future. The savings you are hoping to get will not be worth the risk.
- Ask your agent about a personal umbrella policy (PUP) for greater liability protection. However, PUPs generally cover incidents related to personal negligence. For vacation rental activities, a specific umbrella (commercial) will be required.
Before the family gets busy preparing for that much-needed vacation, check with your insurer your available options if you wish to insure your second home. Protect your investment. Call an agent now.