Seasonal Home
If you’re investing in a second or seasonal home, we have gathered some insurance basics that will help you make the best buying decision when it comes to determining insurability and estimating your ongoing cost of ownership.
Protect Your Home Away From Home
Coverage Options
You can usually add your second or seasonal home to your Homeowners policy as a separate location. Coverage can include the dwelling, contents, detached private structures (such as a storage shed) and Liability coverage. However, because of the part-time occupancy, coverage for certain risks, such as water damage or vandalism, may be more difficult to obtain. Additional risks, such as sewer back up, loss of food in a freezer, garden equipment and outdoor plants, trees and shrubs will likely not be available at all.
Dwelling Fire Insurance
Since most homeowner policies require occupancy as a condition of insurance, the fact that you visit infrequently may preclude you from obtaining full homeowners’ coverage. Dwelling fire insurance is an alternate coverage option used for insuring residential rental or non-owner occupancy property, including vacant property. A dwelling fire policy continues to offer coverage for a home and other structures (detached sheds or garages, for example) for perils named in the policy. Named perils listed in a typical fire dwelling policy protect against damage caused by fire, lightning, wind, hail, explosion and some sources of smoke.
Renting Out Your Seasonal Home to Others?
Whether your second property is a condo or a single-family home, if you are renting the property, you will have little control over the physical damage that can occur to it. To mitigate your risks, tenant-occupied dwelling insurance will cover the costs incurred by damage, including fire, storms, burglary, and vandalism. It does not cover your tenant’s personal property nor do all insurance company’s provide tenant vandalism coverage.
Whether you are renting on a longer-term basis or operating it as an AirBnb type, rental can also impact what coverages might be available. Renting your property furnished or unfurnished also has insurance coverage implications.
Regardless of what type of second or seasonal home you are considering, contact us to find out what your options are. We can advise you on the best coverage available based on your intended use of the property.
As with all home insurance, it is important to be sure that there is enough coverage to protect all of your property values and assets when purchasing coverage.
