If you have the money for it, buying a second home is definitely an excellent investment. Whether you want to spend summers near beaches and lakes or you want a cozy cabin to while away the cool winters, a vacation home is a wonderful luxury. And, of course, you can keep it protected by taking out a new homeowner’s insurance policy.
What if you have an insurance policy on your main house? Can that extend to your vacation home? Find out the answer today.
Is There a Need to Get a Second Home Insurance Policy for Your Vacation Home?
The best answer for this question is yes; you need to take out a separate insurance policy so you can protect your vacation home. This second policy will focus on protecting the structure of your home and everything you can find inside.
Here’s something that you should note. If your second home has a mortgage, it might not be a suggestion, but a requirement, to take out a second insurance policy, according to the National Association of Insurance Commissioners (NAIC).
There are also cases where the insurers might allow you to extend your primary coverage to a second home. This will be for liabilities. So, if someone is injured while inside your vacation home and you are liable for it, your primary home insurance policy will help you pay for their medical bills and possible legal expenses.
What Are the Things to Consider for a Second Home Policy?
Now that you know it’s beneficial to take out an insurance policy for your second home, here are things you should note:
1. Second Home Coverage May Have More Limitations
According to the NAIC, insurance for vacation homes or second homes will be provided on a “Named Perils” basis. Because your vacation home is not a place you live in full-time, it might not need as thorough coverage as your main house.
In a named perils insurance policy, your home will only be covered against the events that are specifically outlined on it. Because of this, it is important to put in all potential hazards and challenges your second home might face.
2. Renters Insurance is Necessary for Tenants
If you want to rent out your vacation home, a standard insurance policy might not be able to cover the damage that occurs while a tenant is staying there. Depending on the conditions, your insurance provider might require you to take out a separate policy for renters insurance in Orlando, FL.
3. Second Homes Are Thought to Be Riskier
Compared to primary home insurance, a vacation home insurance policy would be different in cost and coverage. This is because a vacation home is riskier, primarily because of its location and many enhanced features that might make a property more expensive and high maintenance.
Final Thoughts
Getting a home insurance policy for your second home can give you the peace of mind you need that your house will be protected even when you are not there. So, if you haven’t secured yours yet, talk to a local insurance agent and get started.
Do you need
home insurance in Sanford, FL and the surrounding Orlando FL area? Sanford Insurance Center can help you. Our family owned and operated agency provides property insurance for investment homes, mobile homes, condos, and renters. Call us today at 407-323-5911 to learn more.
