You might be curious as to whether the insurance policy you hold for your primary home, can help protect your second, or vacation home. In some cases, homeowner’s insurance
can extend to more than one residence, in others, you might need to purchase a separate policy.
Insurance policy Q and A’s for your vacation home:
- If I want to ensure that the structure and contents of my vacation home are always protected, do I need a separate insurance policy? In most cases, the answer is yes.
- Will my lender require me to insure the mortgage on my vacation home? Yes, this often the case.
- Can the liability coverage portion of my existing homeowner’s policy be extended to my vacation home? Yes, some insurers may allow this.
As with any questions you may have about your existing homeowner’s insurance policy, and/or your vacation home, it’s best to check with your insurer, who can give you the most up to date and accurate guidance.
Is insurance for your vacation home any different to that of your primary residence?
In general, vacation homes are deemed to be of a higher risk than primary residences, and this can be due in part to their location. For example, many vacation homes are situated beside lakes or on the beachfront, placing them at a higher risk of such occurrences as flooding or even theft if they’re in an isolated area; naturally, this can mean that coverage costs are also higher.
Are there any limitations upon vacation home coverage?
As most vacation homes are not occupied all year round, the insurance is typically written on a ‘named perils’ basis. This means that your vacation home would only be covered against events that have been specifically named in the policy, such as lightning, damage or theft. If your vacation home, or any of the items inside it, are damaged by some peril that has not been listed in your policy, then it will most likely not be covered. While the perils that may be covered in a standard homeowner’s policy, are likely to be far broader.
It’s important to note that the limited perils coverage may also apply to any other structures that are on the same property as your vacation home, such as sheds, garages or boathouses.
How can you increase the coverage on your vacation home?
You might want to consider adding personal property insurance to your coverage on your vacation home, to enable you to replace certain items should they become damaged or stolen. Be certain to check the policy carefully though, as some personal property may not be covered.
Talking to your insurer about flood insurance or extended protection for a boathouse or similar structure on the site of your vacation home, might be a good idea if you have a lake or seaside home.
Neglecting the insurance coverage on your vacation property, and not ensuring that you’re adequately protected whether you’re in it, or not, could end up costing you thousands of dollars. To avoid this, talk to your insurer today and protect your precious vacation home from as many potentially costly outcomes as possible.