You’ve dreamed of owning a bungalow on the beach, or maybe a cabin in the mountains, for years. It was your gift to you and your family for all your hard work. Finally, you have the vacation home of your dreams. The family vacation trips are being planned at this very moment. Everyone is going to have so much fun.
Before you start packing your bags, make sure that you’ve protected your vacation home.
Choose the Right Policy for Your Vacation Home
Your homeowner’s insurance policy on your primary residence isn’t going to cover your vacation home. In some instances the liability portion of your coverage might extend to your vacation home, but not always. You’ll need a separate policy for your second home, but it may be a little different than what you’re used to.
Coverage: Some carriers offer coverage similar to the coverage you have on your primary home. Others do not. It’s very common to see coverage for “named perils” - specific incidents when coverage will apply like lightning damage, smoke damage, or theft.
Occupancy: Because your vacation home isn’t occupied much of the time, carriers will consider the potential for undetected threats such as burglary, theft, or fire.
Location: Vacation homes can be purchased anywhere but many are either very close to the water with potential for damage from flooding or in remote areas making it difficult for emergency crews to reach a home to put out a fire. This will affect the type and cost of coverage available.
Coverage for the property isn’t the only type of coverage you’ll want to consider for your vacation home.
- Personal property insurance is necessary for your “toys” like jet skis, high-priced electronics, and other fun things you use on vacation. It’s good to create a home inventory and keep it current as you add more items.
- Flood insurance may be required if you live in high risk zones and have a mortgage. It’s a good idea to have for anyone near the water, even in moderate or low risk zones. A standard policy doesn’t protect you when it floods.
- Umbrella policies cover the unexpected and give you additional protection. If something happens that’s not covered by your policy or the damage is greater than your policy limits, umbrella insurance will bridge the gap.
If you decide to rent out your home when you’re not there to enjoy it, you may need to purchase additional coverage. Most policies don’t cover the damage caused by renters. If you decide to remodel any part of your vacation home, let your insurance agent know so you have the right amount of coverage to protect your home as you add on and upgrade.
When you’re ready to discuss insurance options for your vacation home or if you want to make sure you have enough coverage, give us a call here at Charlotte Insurance. We want to make sure your vacation home is protected so that you have many years of memories to build with your family.