Buying a second home is a great investment opportunity and also gives you a place to go when you want to get away on vacation. If you are putting money into the new home for either purpose, you need to have sufficient insurance in place in case the home is damaged or destroyed. With proper coverage, your investment will be secured, and you will have the peace of mind you need whether you are at home or on vacation. This post covers some essential aspects of insuring your vacation home.
What Does Your Vacation Home Insurance Plan Typically Cover?
Since no one lives in the home on a full-time basis, your insurance provider may suggest purchasing an insurance plan for named perils only. This covers theft, explosions, lightning, fire, and smoke in most cases. You may also need special insurance if you live in areas prone to flooding, hurricanes, or earthquakes. Insurance for vacation homes will normally include liability coverage as well.
How Much Does It Cost?
Insurance for your second home may be more expensive for several reasons. The first is the need for a secondary policy for specific types of coverage (flood, hurricane, and earthquake). The next reason has to do with the condition and age of the property. If you are using it as a rental property, there are specific types of insurance or increased liability coverage that will be required to protect your investment fully.
How Does Renting Your Vacation Home to Travelers Impact Your Insurance?
Choosing to rent your vacation home to travelers is a great way to earn extra money. However, it also increases your risk of liability. You may need to increase your bodily injury liability, general liability, and medical payments coverage. You can choose between long-term or short-term coverage, depending on how long your rent your home each year. More coverage will also mean an increase in premiums. If you want to keep your premiums more manageable, you may choose to raise your deductible.
Buying Vacation Home Insurance
When you are ready to take the next step and actually purchase insurance for your vacation home, you will need to call your insurance provider to get the process started. You will want to determine what will be covered and what may not be included. Ask about exclusions. It’s also a good idea to ask about your premiums, the deductibles, and any discounts you may be entitled to. Take the time to go over your needs and find the best possible plan that fits your criteria.
Deciding to buy a second home is a big step. However, don’t let your guard down, and forget to buy sufficient insurance to cover your investment. Call our insurance experts at the Advanced Insurance Group to get the process started. We can guide you through the course of buying vacation home insurance in TX and ensure you have the coverage you need to be fully protected, no matter how you choose to use your second home. With the right insurance in place, you can truly enjoy your new home.