Vacation Home Insurance 101: What It Is and Why You Need It

Buying a vacation home is the dream of many, but there’s a lot to consider before signing a contract, and vacation property insurance is a primary one. Because you won’t be in the home full-time, having insurance to protect the property from damages such as wind, fire, and other perils is vital.

It’s unlikely that your primary home insurance policy will cover a second home, which is why you need to learn more about vacation property insurance, why it’s necessary, and the approximate costs. Our InsuranceHub professionals will cover that for you right here.

What Is Vacation Home Insurance?

Insurance for vacation homes typically requires a separate policy from your primary residence. Vacation home insurance covers the second home that you don’t plan to live in full time. However it’s different from vacant home insurance, and you might need to acquire even more than a vacation policy should you carry a mortgage on the dwelling, decide to rent it out, or live in a flood zone or near water hazards.

Vacation Home Insurance: What Does It Cover?

Insurance for a vacation home varies from traditional home insurance policies that may cover practically every potential incident. Policies for vacation homes are designed to protect a property that will not be occupied on a full-time basis. Your insurance agent can build a policy to meet special needs, but standard home vacation properties typically cover damages from the following perils only.

  • Theft
  • Lightning
  • Smoke
  • Fire
  • Explosions

Some policies may include liability coverage that protects against personal injury claims related to the property. However, this coverage could possibly be covered under certain primary homeowners policies. Be sure to carefully read your vacation home policy’s declarations page carefully to see what is covered, deductibles, coverage limitations, and premiums.

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Factoring in the Cost of Insurance for a Vacation Home

Because there will be no full-time occupants, insurance companies consider a second or vacation home to be a higher risk than primary dwellings. Many factors go into determining how much insurance for a vacation home will cost.

Location: Homes located in high-risk areas that are prone to earthquakes, flooding, tornadoes, hurricanes, and those near the beach equal higher premiums.

Property Type: A cabin in a secluded area will cost far less than a high rise condo in New York or an oceanside vacation property. Amenities that create greater risks like pools will increase costs.

Condition and Age: Naturally, a well-maintained or newer home will cost less to insure than one that has been neglected and is older.

Typically, you will need to factor in flood insurance for lakeside, beachside, riverside, or in high-risk areas. If you plan to rent your property to some extent, you might need rental coverage. These will cost extra on top of the basic policy.

Need Vacation Home Insurance? Call InsuranceHub Today

Here at InsuranceHub, our team of insurance professionals can help you get the vacation home insurance that you need. We take time to explain all of your options and how you can save money on your policy premium. Fill out our online quote form or message us on LiveChat for a fast, free assessment.