Vacation Home insurance

Do I Need Vacation Home Coverage?

If you are anything like me, when you go somewhere incredible on vacation , you daydream of a time when you might be able to buy a vacation home there. (I dream of a beach house AND a mountain cabin.) You won’t be there all of the time and you won’t have too much stuff there, so what kind of coverage do you really need?

 The fact that you won’t live there full time is one of the main reasons you need insurance coverage. Think about it. If no one is there, who will notice when there is a leak? Or catch a fire before it blazes out of control? What if you get burglarized? Chances are no one will be there to prevent or at least handle these situations on a timely basis. This means the damage could be much worse than it would have been if someone lived there full time and would be able to intervene on a timely basis. These are high risks you don't want to pay for on your own. 

 Many vacation homes are in rural or beach areas. Let's say you are there when one of those situations occurs, but the fire /police departments are miles away and they take 30 minutes to get there. A fire can destroy an entire home in that amount of time. A leak can destroy your entire flooring. A burglar can empty your home. These are a high risks you don't want to pay for on your own. 

   What if you rent it out or let friends/family stay there when you are not there?  Someone trips over a rug and breaks their leg. Or someone starts a fire in the kitchen and it gets out of control. You can be liable for injuries and/or damages, even if you are not there. These are high risks you don't want to pay for on your own.

   You have worked hard to buy that secondary home for your family to enjoy. If something happens you want to make sure you have adequate coverage for that vacation home, just like you do for your primary home. 

Just like your primary home insurance, there are many coverage options and many carriers to choose from. Talk to your agent and work through what you want and need in coverage. Most primary home policies will not extend much coverage to a secondary property. So you will need a separate policy for your vacation home.

There are few additional options you should consider.

Personal Umbrella Policy (PUP): This is an extra Liability policy that will pick up where your home/auto policies stop. So if you have a liability claim of $500,000 and you only have $300,000 in Liability coverage on your secondary home policy, your PUP will kick in and cover the rest. The more properties, cars and toys (boats, motorcycles...) you have, the higher the premium will be for the PUP. But the added coverage can be a financial life saver.

Fair Rental Income: If you are renting out your secondary home, I highly recommend this coverage. If the home becomes uninhabitable (therefore un-rentable) due to a covered loss, you can be paid the rents you would lose during the time it takes to repair the damage. 

Dwelling Coverge Amount: Dwelling coverage isn’t optional, but there is a little bit of wiggle room in the amount. But as I explained up above, you are more likely to have more extensive damage from a fire, leak or burglary because you are not there full time. Make sure you have enough dwelling coverage to cover a total loss. Don't go cheap because you don't use the home as often. You need complete coverage because of the lack of time you spend there. 

Also consider the fact that you may not be as familiar with the coverage needs of a different part of the country. Make sure you talk to an agent (or have your agent talk to someone) who is familiar with the possible hazards of an area that gets several inches of snow or is on/near a body of water. Especially us city folk- we need to make sure we talk to someone who is an expert on these areas. Every carrier has different options for what they will/will not cover and what type of policies they will/will not write. So I wouldn't get your heart set on "bundling" by trying to make sure your secondary home policy is with the same carrier as your primary home policy. This is not always an option. Your primary home carrier may not even write secondary homes and sometimes they won't have great rates. So be open to the quotes your agent offers you. Of course, if you are with a captive carrier, you won't have many options. (I urge you to find an independent agent and see what they have to offer!) 

There are three ways to request a quote for your insurance needs: 

* Visit our website

* Email us

* Call Brockman Premier Insurance at 877-987-8683