Does Your Vacation Home Have The Right Amount Of Property Insurance?
Whether you own a second home, have a timeshare, or are part of a home swap group, you need to make sure the property you use for vacations has adequate insurance coverage. While your regular homeowner's policy may cover your personal belongings, it probably won't cover any damage to the property you cause during an accident. If you have a mortgage on the property, there is probably some type of insurance required, but since it is not your primary residence, it will not be as inclusive as your homeowner's policy. Here are a few things to consider when insuring a vacation home.
Rented Property
If you will be renting a vacation home, purchase renter's insurance for the location and duration of your stay. You want coverage for your personal belongings, damage repair and for any special items like small boats or personal watercraft. Buy protection against loss, damage, theft and injury to ensure you have everything covered.
Owned, Second Home
When you own your vacation home, things are a bit different. You need to make sure the policy covers special conditions you may not have at your primary home. This will include things like flood insurance and natural disaster protection for hurricanes, tornadoes or earthquakes. If you have a pool on the property, the insurance coverage may have very specific requirements. Because the property will be vacant a good portion of the year, you may be required to empty an above ground pool, or have a secured fence enclosure around one that is in-ground.
Renting Your Property to Others
Renting your home to others when you will not be using it, either as a regular rental or as part of a housing swap, requires special insurance too. Your policy must allow for rental conditions. You need to have coverage for the property and its contents against damage and theft done by tenants. It is also important to have bodily injury protection that will cover any tenants and their guests when you are not present.
For the most part, a quick call to a homeowner's or renter's insurance agency like Arkansas First Choice Insurance will take care of everything you need. Explain to the agent that you are going to be on vacation, or that you will be renting out your second home. If the property is in a different state, you may have to work with a different agency due to different insurance requirements. Do not just assume your policy covers everything you need. Read it, and ask the agent a bunch of "What if…" questions. Having too much coverage is not a bad thing; however, not being covered for something can end up costing you a lot of money.
Share