Things to Consider For Vacation Property Ownership

Owning a secondary home or vacation property can be a rewarding experience and allow you to build so many memories! While owning a vacation home can have countless advantages, it does bring some unique responsibility and maintenance.

Regardless of whether you’re buying a cabin just a few miles away on the lake or an oceanfront condo in Hawaii, you’ll use twice per year, you’ll want to make sure your property remains adequately protected. Renting the property adds an entirely new level of complexity to secondary home ownership and yet a better reason to review your coverages with your licensed insurance agent.

Consider these items when talking to your agent:

  1. Will you need a separate insurance policy for your vacation property liability?
  2. What liability limits are adequate for a home that is vacant more often than is occupied?
  3. If you’ll be renting the property, consider purchasing additional liability limits as well as an umbrella insurance policy to protect you.
  4. Is your vacation home in an area that is affected by natural disasters such as forest fires, hurricanes, floods or earthquakes? You may need a separate additional policy for these.

Follow these insurance tips to reduce the risk of having a claim:

  1. Keep valuables out of your vacation home. Take them with you when you leave.
  2. Ask a neighbor to keep an eye out for any unusual activity at your home.
  3. Consider getting a video surveillance camera such as a Canary or Ring to alert you if someone enters your home. These do not require service contracts and alert you by phone.
  4. Keep your heater set to 60 to prevent any pipes from freezing.
  5. Turn off your water if you plan to leave for extended periods of time. This takes only a few seconds.
  6. Consider a management company if you want to rent the property. They will help keep an eye on things.
  7. Check for obvious liability concerns if you plan to rent the property such as rotten decking, trip hazards, or other deferred maintenance.

We wish you years of memories and relaxation with your secondary home or vacation property. When you’re ready to insure your property, give us a call.

Section 1 of a Home Insurance Policy

Some of the most important insurance concepts that can affect you, aren’t commonly discussed, here’s a guide to some of the major issues.

Section I odds and ends

A couple of final thoughts, as we wrap up section I: Deductibles, Loss Settlement, and Valuation. Since there is much to be said on each of these subjects, I have included completely separate pages on each topic. Still, it is important, that if you are unsure how these work, to take a look at the applicable section.

  1. Deductibles
  2. Loss Settlement
  3. Valuation

To get an incredible quote these coverage sections start our online quote form. To Talk to a licensed agent about this coverage call us at 1-877-784-6787.

This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.

Coverage B Other Structures

If Coverage A provides insurance coverage for the dwelling and things that are attached to the dwelling, “Coverage B Other Structures” provides insurance coverage for all structures that aren’t connected to the dwelling. In this case “structures” is a complicated way of saying anything that is constructed.  For example, a detached garage (remember an attached garage would be coverage A), fences, storage buildings like sheds and greenhouses, in ground pools, barns, sports courts, gazebos, walkways, and driveways.

Usually the limit of coverage A will be defaulted to 10% of the value of the home, although more can be purchased. This limit is a “blanket” meaning you will have one limit for all your other structures, be sure you are purchasing enough to cover your needs. For example if you have a nice 2 car garage, pool, or mother-in-law quarters you probably don’t have enough coverage.

Coverage B Other Structures will have the same coverage form and loss settlement as Coverage A Dwelling. Again, the special form is always the best form. Replacement cost is always better, but you need to get the proper limits for it to work best. Also, it is important to note that if you intend to rent out an other structure such as a pool house, mother-in-law quarters or something similar or use it for business, coverage can change. If you have a situation like this explain this to your agent to ensure you get proper coverage.