Insuring a vacation home is
different from insuring a primary residence. As a result, you'll
want to
purchase insurance that is specifically geared to provide coverage for this
type of property.
When insuring a vacation
home, the type and cost of coverage will vary, depending upon the insurance
company and the state in which your vacation home is located.
Most insurers offer at
least some type of insurance that is specifically designed for second/vacation
homes. Coverage under these types of policies can range from standard coverage
that protects against certain named perils, to more comprehensive coverage that
protects against all perils unless specifically excluded in a policy.
Keep in mind that,
depending on what is covered under the policy, you may need to obtain additional
protection (e.g., property or liability coverage) through either an endorsement
or separate policy. In addition, if your vacation home is located in an area
that is susceptible to flood damage--which is not covered under a standard
vacation home policy--you'll want to look into obtaining separate coverage for
that peril as well.
Due to some of the unique
circumstances surrounding vacation homes (e.g., high-risk location, not being
occupied for long periods of time), vacation home insurance premiums are
usually much higher than those for a primary residence.
However, you may be able to
save money by insuring your vacation home with the same company that provides
coverage for your primary residence (some insurers may require this). In
addition, you may be eligible for other discounts, such as those offered for
newly built homes, nonsmokers, and homes that have a security system installed.
Policy discounts will vary by state and insurer.
Because of the vast array of vacation home insurance
products on the market, you'll want to be sure to shop around for the best
coverage and rates. You may also want to contact the state department of
insurance where your vacation home is located for additional information on the
coverage and rate options that may be available.
