A new vacation home brings so much promise: fun, relaxation, and lifelong memories. Yet all those possibilities also come with potential risks. A frozen pipe, broken window, or other common household incident while you’re away can become a major headache with significant financial ramifications.
With the right vacation home insurance, you can relax knowing your retreat is safeguarded against these risks. At Eber & Associates, we’re dedicated to ensuring that your investment is well protected, providing you with the reassurance you need to enjoy your vacation property worry free.
Did you know that insurance coverage limits for seasonal or secondary homes are usually lower? This is because vacation properties tend to have fewer and less valuable possessions, and they are often unoccupied. However, since you’re only sometimes there, the risk of break-ins or damage from fires and floods can be higher. Let’s take a closer look at how the proper insurance can give you all the protection you need.
What Is Vacation Home Insurance, and Do I Really Need It?
If you’re thinking about purchasing a second home or recreational property, you’ll need vacation home insurance. This type of homeowners insurance is designed to protect a property you own but only reside in part-time.
Owning a vacation home is amazing, but did you know that insurance companies view them as a higher risk? Since vacation homes are not continuously occupied, there’s a greater chance of theft, vandalism, and water damage going undetected. For instance, if you have a beautiful beachfront house, the sporadic visits from you and your neighbors make it more vulnerable to theft or vandalism. Plus, water damage in an unoccupied second home might go unnoticed for longer, increasing the likelihood of higher insurance claims for damages.
What Does Vacation Home Insurance Cover?
Unlike traditional homeowners’ insurance, vacation home insurance is tailored to the unique circumstances of a home that isn’t always lived in. The policy for your second home will outline the specific events covered, but may include damage from:
- Theft
- Vandalism
- Lightning
- Explosions
- Fire and smoke
- Water
When purchasing insurance for your vacation home, it’s not enough to just glance at the policy — it’s important to carefully review the declaration page. A trusted insurance broker should be able to explain all the details about your property’s coverage, including your limits, deductibles, and premiums. This allows you to make informed decisions and guarantees that you have the protection you need for the price that fits your budget.
Discover the Cost of Vacation Home Insurance
The price of vacation home insurance can be different than a traditional homeowner’s policy. Your cost depends on the amount of coverage and other factors related to your property including location, age, amenities, and condition.
Depending on the property’s location, vacation home insurance may require additional coverage. For example, if your vacation home is near a beach, lake, or river, you may be required to obtain a separate flood insurance policy. If your second home is near the ocean, protection from hurricane damage is important. Choosing a specialized hurricane policy can provide the necessary protection for your investment.
What if You Use Your Vacation Home as a Rental?
Thinking about renting out your vacation home? You should consider getting a landlord policy. This policy provides coverage for damages by renters and replaces lost rental income if your property requires rebuilding or repair due to a covered loss. Renting out your vacation home may require additional insurance coverage for liability, bodily injury, and medical payments, increasing your premiums. Depending on how long you plan to rent it out, you may need a short-term or long-term insurance policy. Check with your insurance company about adding an endorsement to your existing policy for short-term rental coverage.
Trust Eber & Associates for Our Insurance Expertise
With more than 20 years of experience, Eber & Associates is committed to helping homeowners — and vacation homeowners — navigate the complexities of their insurance choices and identify the ideal solution for your needs. We’ve got you covered, whether life, home, or auto insurance.
Contact us now for a quote, and let’s secure your peace of mind together.
