Owning a seasonal or second home can be a rewarding experience. You can use the home when you would like to, or even rent it out for income. These second homes are valuable investments and need to be protected with appropriate home insurance. How do you do that?
Home Insurance Is Necessary
First, 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 the correct 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. The risk of theft, vandalism, and even fire is often higher than those of your primary residence. Since the home is not continually occupied, the insurer cannot provide a standard homeowners policy to you.
To minimize the risk of having to pay too much for coverage, speak to your Ten Eyck Group agent about your home. Be sure to be clear about your usage of the home; this helps your agent properly protect your investment.
Do You Rent It?
If you are someone who rents their seasonal home while not in use, it is important that you inform your insurer of how often you do so. 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.
Some companies may allow you to bundle the coverage of your seasonal home in with your primary residence. Going to the same company to insure both residences could help reduce the overall costs. The company can also better understand the overall use of the second home and 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.
It is extremely important to protect the investment of a second or seasonal home. Work closely with your Ten Eyck Group agent to make sure your insurance program is set up properly to protect all of your investments.