How Can You Choose a Home Insurance Policy for a Vacation Home?

options to choose home insurance policy for vacation home

How Can You Choose a Home Insurance Policy for a Vacation Home?

Once you purchase a second home or a vacation home, the best way to protect your property from unseen external factors is to get a homeowners insurance policy. The type of policy needed for your vacation home is similar to that of a primary home insurance policy. However, the insurance rates tend to be higher for a second home due to the increased risk of claims. It is because your vacation home is likely to be unoccupied and, thus, is more susceptible to burglary or damage from fire or leak.

Read on to learn how to choose a home insurance policy for a vacation home.

Go Through Your Standard Home Insurance Policy

Check your primary homeowners policy to see if it covers additional homes. If yes, you can easily extend the liability to protect your vacation home.

Talk to Your Existing Insurance Company

Consult with your existing insurance company about getting a home insurance policy for a vacation home. The premium for a vacation home tends to be higher; however, if you take your policy from the current insurance company, they might offer a discount on the premium.

Know How to save on Premium

The premium of vacation homes is more due to the higher probability of theft and damage. There are a few ways a homeowner can get down their premium amount, such as by hiring a full-time caretaker to live in their vacation home, installing a security alarm, fire extinguisher, smoke detectors, burglar alarms, etc. These precautionary measures can easily help you save 15-20% on your insurance.

Compare Quotes Across Companies

The existing insurance company must have quoted you less price on premium, but they might cut back on coverage. Don’t commit this mistake of saving a few dollars on a home insurance policy. In the event of damage and loss, you will be more likely to regret this decision. Shop around more to find the best deal in terms of premium and coverage.

Understand How the Premium Is Calculated

The actual cost you will pay on your policy depends on various factors, including how often your second home is vacant, where it is located, whether the house contains expensive items, or whether you are renting out the property or not will all cumulatively affect your premiums.

Location of Your Second Home

If there is one factor that heavily affects the premium rate, it is the location of your vacation home. You will need to shell out more premium if your vacation home is located in disaster-prone areas where tornadoes, floods, hurricanes, mudslides, or wildfires may frequently occur because these types of events aren’t included in basic coverage and demands add-on riders.

Consult with Club Agency

Undoubtedly, the best investment in today’s world is real estate. With investment comes the element of protection as well. Just don’t make the mistake of buying a policy for a vacation home but claiming it for a primary home to save a few dollars on premium. In the event of claiming, the insurance company will discover the truth and can reject your claim. Contact our agents at Club Agency, and we will help you to get the most suitable insurance policy for your vacation home.

COVID-19 Update:

At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time. Contact us today!Executive Order for Policyholder Payments