What You Need to Know About Insuring Your Vacation Home
The process of finding insurance for vacation homes is much more complicated
than for city homes. Insurers seldom jump at the chance to insure these “risky”
So, why are vacation homes so difficult and expensive to insure?
Many vacation homes are located in areas which are particularly at risk for what
is known as, “acts of God,” such as hurricanes, wind, and flood damage.
As well, many vacation homes, which aren’t rented out, are left vacant for long
periods of time – meaning they are at greater risk from thieves and vandals. At
the same time, vacation homes, which are rented when the owners aren’t using
them, also present problems of theft and vandalism, plus liability claims.
So how do you get the protection you need for your vacation home? In this case,
it’s even more important to compare insurance options. Vacation homes will cost
more to insure than your average similarly constructed inland house because of
However, like other insurance products, companies have different ways of
measuring risk proportionate to premium. Talk with your insurance agent. He or
she may be able to suggest options you wouldn’t have thought of and suggest
how to reduce risks.
For example, you’ll probably find more affordable rates if you don’t rent the
property. Do the math; if the cost of your income from renting out the home
exceeds the costs of insurance and upkeep, go for it. Otherwise, keeping it as
your private sanctuary may be your best – and cheapest – option.