Owning a vacation home has many benefits that both you and your family can enjoy for a lifetime. When you insure your vacation home, there are often complex and very different coverages than primary homes.
What insurance you will need is impacted by the way a property is utilized or how long they are occupied. Vacation property insurance is provided as a named perils policy. This means vacation home coverage is not comprehensive and owners must secure coverage for specific risks, like fires or explosions.
In order to properly protect your investment, consider the following types of coverage:
- Contents coverage— Standard home insurance policies protect any property that you transport back and forth between homes. Contents coverage fills the gaps and protects any items that are permanently kept at a vacation home.
- Replacement cost coverage— Working in conjunction with contents coverage and reimburses the cost of repairing or replacing an item.
- Coverage for detached private structures—Many vacation homes have private structures like boathouses and sheds you’ll need to account for.
Coverage for certain risks, like water damage, sewer backup or vandalism, may be difficult to secure or excluded altogether. Contact a qualified insurance broker to help assess your needs and build a custom policy for your vacation home.