Buying a secondary or vacation home is an exciting, yet potentially overwhelming venture. To lessen the stress, we’ve gone over insurance needs when it comes to this purchase.
Start with your current homeowner’s policy
This comes as a surprise to many, but you may be able to expand your current policy to cover a second home. This will increase the cost of the policy as well as its scope. If you can, this may be the cheapest route to take, as well as the most convenient for you. Just be prepared for the company to only allow coverage of one residence per policy and have a backup plan in place.
Look into bundling
If you do need to take out a second policy, speak with your current provider about bundling the two policies. Because insurance providers like to bring in as much business as possible, they often provide hefty discounts when you take out a second or third policy with the same company. This could mean big savings on typically pricey homeowner’s policies.
Know what coverage you need
Secondary and vacations home often have different needs than a primary residence. They tend to be smaller and have fewer items to insure. However, they also tend to see more long-term guests and are sometimes used by others without the owners being present—making for greater liability.
The area where the home is located may also have different concerns than where you live. If it is in a hurricane or earthquake prone zone, you will want additional coverage for these potential problems.
Work with an insurance broker
If you are struggling to handle the insurance coverage on your own, you can let an insurance broker handle the process for you. This will prevent any gaps in coverage and ensure you are paying only for what you need. Brokers often work with a wide variety of companies and you are their client, not the insurance company’s. As professionals, they can easily connect you with your best options.
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