Even if you don’t live there year-round, it’s a good idea to have good coverage on your vacation property.
For the most part, insurance coverage for a vacation home works the same as coverage for your primary residence. However, there are some key differences in the type of coverage you can select for a second home based on the frequency and purpose for which you use the property.
Some things you’ll want to consider when deciding what coverage is right for you include:
1. Do you use the property only during the summer months?
2. Do you make regular visits on the weekends?
3. Do you rent to other occupants throughout the year?
Keep in mind:
1. Unlike the comprehensive policy on most major residences, insurance coverage for a vacation home generally includes Named Perils coverage rather than All Risks coverage. This limited coverage only insures against the risks specified in the policy, such as fire or windstorms.
2. Many insurers will require you to insure your primary residence with them before insuring a vacation home.
3. Because you only occupy your vacation home part of the time, you are likely to pay more for coverage against risks such as water damage, theft, or vandalism.
4. Typical Exclusions from Vacation Property Insurance
The following items are generally not covered in an insurance policy for your home away from home:
1. Sewer backup
2. Perishable foods stored in the freezer
3. Fencing and garden equipment
4. Garden items, such as trees and plants.
5. Choose the right coverage
Four types of coverage to consider for your vacation home include:
Personal liability coverage
Protecting yourself against accidents that may happen to people on your property is the primary function of personal or third party liability coverage. This coverage also protects you if a fire occurs on your vacation property and spreads causing damage to the surrounding property.
Content coverage
This coverage protects any item that you keep on your vacation property. Any item that you transport back and forth from your primary residence to your vacation property would be covered by your primary home insurance policy. This type of coverage can be automatically included with your secondary home insurance package, but if your belongings exceed the value of that coverage, you can purchase this additional coverage. The insured risks for your vacation property will generally be less inclusive than those for your home.
Independent Private Structure
Detached structures in your vacation home, such as garages, sheds, or boathouses, may have limited or no coverage in your vacation property insurance package. This additional coverage will help ensure that you have adequate coverage for these structures.
Replacement value
This coverage allows you to replace covered items at current market prices with no deduction for depreciation.
If you have any questions about your vacation property insurance, don’t hesitate to give us a call.