Congratulations! You are about to invest in a vacation home. Many seasons of rest and relaxation are in your family’s future but what does this new acquisition mean for your existing homeowners insurance policy? Ensuring you have adequate insurance coverage will play a crucial role in protecting the new home you worked so hard to acquire.
Second homes or vacation homes may require different coverage than owner-occupied homes. Your new home may be in a different climate with new weather concerns, or may be located in a remote area farther away from a fire station or hydrant, for example. Maybe you have even hired a caretaker who maintains your vacation home while you are living in your primary residence. There is also the possibility that you became an “accidental landlord.”
While your independent insurance agent will explain all the details, answer all of your questions, and make certain you are purchasing the right coverage, these five facts will help you begin to familiarize yourself with vacation home insurance:
- You’re typically insured for up to 80 percent of your home’s value. You may choose to purchase an additional rider for the remaining percentage, and raise your deductible to offset the premium.
- Many factors determine your vacation home insurance premium. Beginning with what the home is worth, it is followed closely by what the home is made of, its age and proximity to a fire station, and its general location, to name a few.
- Title insurance and homeowners insurance are two different types of coverage, and you need both.
- Title insurance involves ensuring the title on your home is valid, and without defects or encumbrances.
- Homeowners insurance provides coverage for property, possessions, and liabilities of guests on your property.
- Tip: You may supplement your homeowners insurance with riders if necessary to protect extra possessions, such as items that are extremely valuable, like jewelry, watercraft or other types of recreational vehicles you store in your vacation home.
- Think about how much coverage you need. How frequently will you be using your vacation home? Will there regularly be friends and other guests in your new home? What about pets? Are you planning to rent out your vacation home out to others when you aren’t occupying it? Your independent insurance agent will discuss these questions with you in order to help you secure the right coverage for your vacation home, at the lowest possible rate.
At Knapton, Reade & Woods, the protection of your homes is our priority. To get a free quote for coverage for your vacation home or your primary residence, please call us today at 800-779-4084, or click here to submit our online quote request form. For additional insurance information and useful safety resources, please read our blog, or visit us on Facebook, Twitter, LinkedIn and Google+.