The enjoyment and benefits that a second home can provide are numerous, but it is essential to have the right Rental & Vacation Home Insurance policy in place to protect your investment. Whether you use your second home as a vacation home or you rent it out, it is important that your insurance policy covers all the circumstances involved in these unique situations.
Rental & Vacation Home Insurance Coverage
The right policy depends on how your second home will be used and by whom. If it is for your own use, you may consider a Homeowners Policy that is specifically designed for a second home. Renting out your vacation property for money is considered a business activity and is therefore unlikely to fall under your homeowners policy. Leasing your home out to one party for an extended time may require a landlord insurance policy.
If you rent it out frequently to a variety of short-term guests, it may require a short-term rental policy. If you are only renting it out from time to time, however, a rider or endorsement on your Homeowners Insurance policy may be adequate.
Liability Coverage
A typical Vacation Rental Property Insurance policy will include liability coverage for any personal injuries that are sustained by your guests or anyone who is visiting the property.
Contents & Structure Coverage
This offers protection for the building itself as well as its contents in the case of theft, fire, or damage. In some cases, it will also cover some of the amenities that are typically found in vacation homes, such as small watercraft or swimming pools.
Loss Of Income Coverage
In the event that your property is so badly damaged that it cannot be rented out for an extended period, this part of the policy will reimburse you for the income that you lose during that time.
What Factors Affect The Cost?
The location of the home is one of the biggest factors in determining the cost of your Vacation Property Rental Insurance policy. For example, an inland property in Georgia will cost much less to insure than a coastal property in Florida. Other factors that can influence the cost include its replacement cost value, the amount of coverage you get, and the home’s amenities.
This type of policy is generally more expensive than a primary Homeowners Insurance policy given the longer periods of time that second homes generally sit vacant. Therefore, even if your vacation home’s value is equal to that of your primary residence, the policy on your vacation property will likely cost more.
Additional Factors To Consider
There may be other factors to consider depending on the type of vacation home you have. For example, Flood Insurance or earthquake coverage might be needed in some areas.
You may find savings by taking steps to counter preventable problems at your vacation home. For example, installing a security system to protect against vandalism may help lower the cost of your policy.
Speak To The Experienced Personal Insurance Brokers
Whether your second home is for passing the summer, enjoying a winter retreat, or just going on the occasional weekend getaway, speak to Southern States Insurance to find out more about the right policy for your specific needs. For more information or to acquire a policy, please give our experienced Personal Insurance brokers a call at 888.971.6304 or request a quote online today.