May 28, 2015

How to Properly Protect Your Second Home

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Second Home Insurance Coverage 

Owning a second home ensures that you always have a place to stay while on vacation. It can also mean an extra income if you decide to lease out the home while you are not using it. It can also carry some risks, which is why it is important to make sure that you know which insurance policy will properly protect your vacation home.

Your existing homeowners insurance policy that you already have for your primary residence may provide some protection for your second home. While you could have the option to extend the liability portion of your home insurance policy to your vacation house, you should still look for a separate policy to protect the assets that you keep in the house. If you took out a mortgage to pay for the house, your lender may even require that you invest in a separate home insurance policy.

When you do invest in a second homeowners insurance policy for your second home, you may find that the policy looks slightly different. This is because vacation homes that are in an appealing location could be considered riskier than where you live full time. If your vacation home is an ocean front property, it can make the house more difficult and expensive to insure.

Due to the riskiness of insuring a second home, many insurance companies will only write policies that will cover named perils. This means that damage to your second house will only be covered if it occurs during a peril that is specifically named on your policy. If it is damaged from any other peril, you will have to pay for the damage out of your own pocket. Investing in a personal umbrella policy will provide extra coverage that will go beyond your vacation home insurance policy to ensure that you have the protection that you need.

For all of your homeowners insurance needs, contact Brewer-Lloyd Insurance Group in Mesa, Arizona.