When you buy a vacation home you are making a big decision. This will effect your life in many ways, including your finances as well as where you spend your time.
A vacation home should be a place to relax. This should be a place to get away from the everyday stresses that are causing you pain. For this reason, it is essential that you purchase the proper type of home insurance.
Believe it or not, many people skimp when it comes time to buy home insurance for a second property. Since they are not living in the home full-time they overlook the importance of a comprehensive policy.
What would happen if the property were destroyed in a fire? What if a hurricane hit and your beachfront property suffered extreme wind damage? These are the types of questions you have to ask and answer as you consider buying a vacation property.
How does it Work?
Generally speaking, insurance for a vacation home is similar to a policy for your primary residence. You will want to obtain protection against the following circumstances:
- Damage due to natural disasters such as wind, hail, rain, and snow
What about liability insurance? This is a must if you are going to rent your property to others. This will cover you against again slip and fall accidents and other similar incidents.
Important Details to Consider
Time after time, vacation homeowners make the same mistakes when buying an insurance policy. Here are several details to ensure that you don’t run into the same problems as many before you:
- Your standard home insurance policy is not going to protect against flooding. If the property is in a flood zone (such as those close to a waterway) it is important to buy a separate flood insurance policy.
- Hire a property management company if you are not able to maintain the home on your own. Like many, you may purchase a vacation property that is far away from where you live. To ensure that the property is always under watchful eyes, find a reputable property management company.
- Don’t skimp on coverage. It is easy to think that you don’t need as much insurance since you are not living in the home the majority of the time. This is flawed thinking that could cost you a lot of money in the long run.
Do you Qualify for Discounts?
Many people find it hard to believe that a vacation home insurance policy costs more than coverage for their primary residence. This is the case for one main reason: an unoccupied home is often times more susceptible to storm damage and theft.
Fortunately, there are several steps you can take to keep down the price of your policy:
- Buy coverage for your vacation home from the same company as your primary residence. This will lead to a multi-policy discount that can save you a lot of money.
- Safety discounts can help you save a lot of money while also keeping the property safe when you are not around.
- Do you qualify for a new home discount? In short, new homes cost less to insure since they have updated wiring and plumbing as well as a “sound” structure.
It does not matter if you are buying a beachfront home in Florida or a ski condo in the mountains, you need to purchase the proper vacation home insurance.
When you buy the right insurance at the right price, you can rest easy at all times – even when you are many miles away.