Insurance for Your Vacation Home

Insuring a vacation home is different from insuring a primary residence. As a result, you’ll want to purchase insurance that is specifically geared to this type of property.

The cost to insure a vacation home will vary, depending on where the property is located and the insurance company. Other factors, such as the type of property and special amenities, may also affect the cost of premiums.

Insurance that is specifically designed for second/vacation homes can range from standard coverage that protects against certain named perils, to more comprehensive coverage that protects against all perils (up to policy limits), unless specifically excluded in the policy.

Depending on what the policy covers, you may need to obtain additional protection (e.g., personal and liability property coverage) through either an endorsement to your primary homeowners policy or a separate policy. And if your vacation home is located in an area that is susceptible to flood damage, which is not covered under standard homeowners insurance, you’ll want to consider separate coverage for that peril as well. Homes susceptible to hurricanes, wildfires, or earthquakes might also require an endorsement or separate policy.

Insurance premiums for vacation homes are usually much higher than those for a primary residence because of circumstances unique to second homes (e.g., long periods of being unoccupied, vandalism risk). However, you may be able to save money by insuring your vacation home with the same company that provides coverage for your primary residence. You might also be eligible for other discounts, such as those offered for newly built homes and those with an operating security system. Policy discounts vary by state and insurer.

Be sure to shop around for the best coverage and rates. You might also want to contact the state department of insurance where your vacation home is located for additional information on the coverage and rate options that may be available.

If you have questions, contact the Experts at Henssler Financial:

• Experts Request Form
• Email: experts@henssler.com
• Phone: 770-429-9166

Disclosures: The following information is reprinted with permission from Forefield, a division of Broadridge Financial Solutions, Inc. This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.