Vacation Homes: Making Sure You’re Adequately Covered

By: Denise Koslowsky

Beautiful Log Cabin Exterior Among Pine Trees

Vacation homes are a great investment.

Whether you use it for the occasional weekend getaway or for a summer away from home, knowing you have a second home in a location you love is a wonderful feeling. Vacation homes do however carry some risk, especially since they remain unoccupied for extended periods of time. Below are some things to consider in regards to your vacation home.

Vacation homes often carry risks based purely on their locations. Make sure to consider additional policies or endorsements for risks such as flooding if your home is near a river, lake or beach.

Possibility of Rental Property
According to an article by the Wall Street Journal, a typical vacation home owner only spends only 39 days per year at their vacation home.  What are you doing with the home for the time you aren’t there? Many people are opting to use their vacation homes as rental properties to offset some of the costs of ownership.  If this is something that you are considering, make sure that you alert your insurance agent and consider the increased risk exposure.

Advocate tip:    Your insurance company must be made aware of a rental exposure or exclusions can apply.

Also Consider:  Hiring a property manager.
Along with having someone there to check up on your vacation home and make any minor repairs as they become necessary, they can also handle all aspects of the rental process, making it easier on you.

For more tips on how to keep your unoccupied home protected, visit our previous blog here.

Protecting Your Investment
Protect your vacation home against potential disasters when you aren’t there.  Install a central station fire and burglar alarm system, temperature monitoring system, water leak detection system, and consider an automatic generator.

Advocate Tip:    All insurers will give loss prevention credits for these types of devices, which in turn will lower your premium.

Coverage for Additional Structures
Check your policy for limits on additional structures at your vacation home such as boat houses, swimming pools, or detached garages. There is a larger liability risk with additional structures such as swimming pools if you are renting out your vacation home or letting family and friends use your home.

Reduce Personal Property Limits
If your vacation home isn’t lavishly furnished or decorated with high value items, reducing the personal property limits of your policy might be worth consideration. It may lower the cost of your premium and make insuring your vacation home more affordable to not have such high personal property limits.
As your insurance Advocate, we want to make sure you and your property are covered no matter where you are. Whether your vacation home is beach front in the Hamptons, or in the mountains of Vermont, we want to make sure you have adequate coverage to protect yourself, your family and your property. If you have any questions about the coverage on your vacation home or are looking to purchase a vacation home, feel free to contact one of our customer service representatives.


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