Insurance Talk
Vacation or secondary home insurance Tips for insuring your home away from home
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When buying a vacation or second home, many people are surprised to learn the insurance frequently costs more than for their primary resi- dence. Why does insuring a second home cost more? Simple answer: You don’t spend much time there. Vacant houses present higher risk of vandal- ism, fl ooding and fi re in addition to greater exposure to liability loss. There are several ways you can make your vacation home a better risk
and possibly mitigate the cost of insurance protection. You’ll generally get better pricing by insuring your secondary home
with the same company that insures your primary residence. Purchasing a secondary home in a gated community typically serves
to reduce rates, as will obtaining any documentation that the local fi re department can easily access sources of water in the event of a fi re. Having a monitored alarm system in your secondary home to detect fi re or burglary also results in lower premiums, just as it does for your
primary residence. If you rent your second home
as a vacation property, expect to pay a higher premium. That’s because you’ll be there less fre- quently and it’s assumed that others will not care for the home as well as you. But if you rent the home frequently, you may catch a break, because the home will appear occupied, reducing the likelihood of burglary. Also let your insurer know if
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you rent the home empty; you’ll typically get a break on contents insurance. Jim Rookard, director of insur-
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ance services for AAA Colorado states, “If you don’t have an umbrella insurance policy already, owning a secondary home cer- tainly increases the need to con- sider purchasing this protection. An umbrella policy provides an additional layer of liability insur- ance protection, not only for your homes but also auto and recre- ational pursuits at a very afford- able cost, usually in increments of $1,000,000.” Rookard also suggests you may
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wish to “check to make sure you have proper coverage for wind damage, especially if your second- ary home is in a coastal area. Also, consider fl ood insurance because most standard property policies do not cover fl ood damage, and require a thirty day waiting period before coverage takes effect.” It’s always a good idea to con-
tact your agent and discuss your unique needs.
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