A seasonal home can serve as a wonderful getaway, but it is also an investment as much as a regular home is. While you may not spend as much time in your seasonal home, it can still face a lot of the same dangers as your full time house and needs home insurance for protection.
If you own a seasonal home and you carry a loan on it, the lender will likely require full coverage for the home. This means having a policy with proper property and liability coverage. This protects the lender’s investment.
Even if you do not have a loan, it pays to have a policy in place to protect the home at all times. You do not want something happening to your home without proper coverage.
Talk to Your Agent
Seasonal homes can be a bit more difficult to insure than your primary residence. Since you do not live in the home, the insurer cannot provide a basic policy to you. The home is also not continually occupied. So, the risk of theft, vandalism, and even fire are often higher than those of your primary residence.
To minimize the risk of having to pay too much for coverage, speak to your Ten Eyck Group agent about your home. Be sure the policy reflects your usage of the home. This helps ensure your agent can properly protect your investment.
Do You Rent It?
Some property owners rent out their seasonal home when not in use. If you do this, be sure to tell your insurer about it. This may change the type of insurance coverage you need. Even if you use a property management company for the rental, you need to protect your investment. If the insurer learns you are renting the home but lack the right coverage, you may not have protection for a claim.
Another way to reduce coverage is to bundle the coverage of your seasonal home in with your primary residence. When you bundle, you’ll buy two policies with the same company. Therefore, you often reduce the risk for the insurer. You also can save money on your policy. This may help you secure the seasonal coverage you need. Nevertheless, do not attempt to insure two homes on the same policy, or with the same limits. The rule is one home, one policy.
Contact your insurance agent to make sure that your seasonal home is protected under the right home insurance so that you can continue to vacation in peace.