Home Insurance Articles
3 Things To Know When Buying Home Insurance For A Vacation Home
2010-03-27
Most homeowners have few problems obtaining insurance for their primary home. The reason is that a primary home is lived in year-round, it has sentimental value to the owner(s), and most importantly, most mortgagors require insurance on primary homes. When it comes to secondary homes, however, vacation homes in particular, many homeowners fail to properly insure, assuming they have any insurance at all. Often these homeowners don't recognize that their vacation home is a greater hazard than their primary home, for several reasons. Unlike a primary home, a vacation home is often unoccupied, leaving it susceptible to theft, fire, and other perils. This coupled with the fact that most vacation homes are secluded or near the shoreline, makes good home insurance coverage extremely important for a vacation home. In order to buy home insurance of the right kind for your vacation home, there are a few things of crucial importance to know.
Uncovered liability can be ruinous, so being having liability insurance can be a financial lifesaver. Though the homeowner may not be there year-round, they are still responsible for injuries that happen on their property. If a fire blazes and damages a neighboring home, the homeowner could be held responsible. If poor maintenance causes damage to a passerby, the homeowner could, again, be held responsible for resulting injuries. The injured person in these events has the right to sue, which ultimately could mean significant repercussions for the homeowner. Hence, a liability policy is crucial to consider when buying home insurance for a vacation home. Having one will provide much needed financial support in the unfortunate event of a liability lawsuit.
There are several types of coverage to consider. Insurance for a vacation home, like most other insurance, comes in several forms. For the most part, in fact, the coverage types tightly parallel those of regular homeowner's insurance. Some types of coverage are absolutely essential: fire, flood, and wind coverage. For example, all homeowners should consider fire coverage. Any home, regardless of location, is susceptible to fires - whether from electrical malfunction, an ignition, or some other cause. Conversely, there are some types of coverage that are not as essential, but still very worth considering, such as personal property insurance.
Make room for renters in your insurance policy. Renters are a special concern when purchasing an insurance policy for a vacation home. Unfortunately, they can be both helpful and hurtful. On one hand, renters can lower the cost of insurance because if the home is constantly occupied, there is less risk of peril. On the other hand, renters may require additional coverage to make sure their assets and interests are safeguarded. Figure out what kind of coverage you want on your vacation home.