Buying insurance coverage for a vacation home is a bit different from buying coverage for your primary residence. This is because the two types of homes have different risks or threats. In most cases, vacation homes cost slightly more to insure as compared to primary residences. However, the following tips should help you score reasonable rates for your vacation home.
Take Measures to Secure the Home
One of the top reasons vacation homes cost a lot to insure is because they are inherently insecure. Both thieves and vandals are more likely to target an unoccupied home than an occupied one. This may mean there is higher chance thieves may break into your vacation home as compared to your primary residence. Take security measures to secure your home and manage your insurance costs.
Protect Your Home's Systems
In addition to the risk of criminal break-ins, vacant homes also attract high insurance rates because small problems can easily turn into full-blown disasters because there is no one to mitigate them. For example, a small pipe leak can flood the house because no one is there to deal with it. Here are a couple of ways to deal with this problem:
- Ensure all the systems, such as electrical, heating and plumbing, are well maintained to reduce the risk of damage
- Install sensors, such as smoke or water leak detectors, to alert you in case of a malfunction
- Ensure the drainage system is well planned to reduce the risk of flooding
Add an Endorsement to Your Primary Home's Policy
In most cases, you will need to buy full separate coverage for your vacation home. However, some insurance carriers may allow you to add an endorsement to your current policy instead of buying a separate policy. Consider such an arrangement, if possible, because it's likely to be cheaper than buying a separate policy for your house. If you have to buy a separate policy, it may be cheaper to buy it from the same insurer due to the discount afforded to those who bundle their policies.
Get a Caretaker to Stay On the Grounds
As previously mentioned, vacation homes tend to attract high insurance rates because they are vacant most of the time. Therefore, you can reduce the risks and their associated costs by getting a caretaker or manager to live on the property grounds and take care of it. Inform your insurance carrier about the arrangement, and you may just snag a discount.
For more information, reach out to companies like Bishop Insurance Agency.