A second home is an excellent investment. These homes are sometimes purchased for family members who need a place to live. They are sometimes purchased with the intent to make money while charging rent to tenants. In most instances, second homes are vacation properties in locations that are ideal for getaways. Beach homes, mountain lodges and forest cabins are the most popular second homes in the United States.
An issue with the second home is insurance. It is vital to insure all forms of property, but that is arguably never more true than with a home you cannot see and maintain on a regular basis. Likewise, vacation homes are often in spots that need more insurance than typical homes. A vacation house might regularly be in the path of a hurricane, wildfire or avalanche. Those disasters are irregular, but they often ironically happen in places where many people like to relax.
Even more important than protecting a vacation home from a natural disaster is protecting it from theft. An empty home is attractive to thieves. Vacation homes are primary targets. It is wise not to leave items of value in a home that is unoccupied, but it is not practical to remove televisions, sound systems or large works of art every time you pack up to head home. A security system is necessary, but so is an adequate insurance policy.
Even without criminal activity, homes that are left unoccupied may suffer issues that aren’t apparent to the naked eye. Hail damage to a roof or to windows can cause rain to seep in, which can warp furnishings and lead to mold. A broken pipe can cause massive damage to floor coverings and the home’s subfloor.
You may also be liable for accidents that occur on the property even if you’re not present. A third party who uses your vacation home might be injured while on-site. That injury is often your responsibility.
In most instances, homeowners have a couple of options. They can either extend the existing policy on their first home or take out a separate policy for the vacation home. The choice should be based on the amount of coverage you need and the cost difference between those two options.
Private Management Insurance Agency is highly willing to offer whatever assistance you may need at each step of the quoting and transaction process. You can reach our customer service team on Monday through Friday from 9 am-5 pm PST— Call us at (858) 252-4111, or you can also set a schedule with us just by clicking here: