Home Insurance Articles
Do Not Forget To Purchase Home Insurance For Your Vacation Home
2010-07-14
A vacation home provides a great atmosphere for relaxing and escaping the stresses of daily life. But many homeowners mistakenly believe that their vacation homes are safe from the risks of owning a home. In truth, second homes are more likely to be broken in to or ruined by natural disasters than any primary residence. As such, it is important not to skimp on insurance for your vacation home. Many vacation homeowners are deterred from proper insurance plans by the exorbitant insurance rates on second homes. Insurers recognize the increased vulnerability of a house that is usually unoccupied. Coastal vacation homes are especially vulnerable, given the havoc wreaked by hurricanes in recent years. Some vacation homeowners avoid the expense of insurance plans altogether, while others invest in minimal coverage. Such plans may provide short term savings but generally pay out less on home insurance claims.
Other homeowners find it difficult to find adequate coverage, even if they are willing to pay for expensive plans. This problem has been exacerbated by insurance companies pulling out of coastal areas in the aftermath of Hurricane Katrina. It is possible to obtain an insurance plan and keep vacation home insurance at an affordable level, but quality insurance should not be sacrificed to achieve a lower insurance bill. Any second home insurance claim should include coverage of the house, the furniture and other possessions within the house and liability protection. Vacation homes in coastal areas should also be covered by hurricane and flood insurance.
When choosing a home insurance claim for your vacation property, be sure to consider whether or not you will be occupying the property or renting it out to other vacationers. Insurance companies view the short-term rental of vacation homes as business endeavors, a designation that results in higher insurance bills.
If you decide to rent out your vacation home, you will want to choose an insurance plan that covers claims in which the renter is responsible for the damage. Some insurance plans will drop any home insurance claim that is renter related.
Before investing in insurance for a second home, consider an umbrella policy. This type of liability policy extends the limits on a primary residence's policy in order to include the vacation home.
Some insurance plans will discount homes in which owners have taken extra precautions. Homeowners can lower insurance rates by installing fire alarms and burglar alarms, purchasing property in gated communities or joining a neighborhood Block Watch program. Owners who use the same insurance company for both primary and secondary homes often are rewarded with lower insurance rates.