As summer starts to wind down and you begin the process of readying your summer home for its long winter sleep, it’s the perfect time to check in on your vacation home’s insurance policy.
Not all vacation homes are considered equal. Some are elaborate and meticulously maintained, but many are thoroughly enjoyed and thus, well worn. Some vacation homes require more insurance coverage than others, and some homes require adjustments as the property ages or its usage changes.
The Basics Of Insuring Your Vacation Home
For those who have invested significant money into their vacation homes, an insurance policy that mirrors a home insurance policy may be appropriate. However, for those who watch the front porch roof sag slightly or haven’t found the need to install insulation or a furnace, a specialty policy may be better suited.
Each provider will have different options available, but here are some basic terms to understand when considering vacation or second home insurance:
Comprehensive Property Coverage – provides coverage for most direct, sudden, and accidental physical losses that are not specifically excluded from the policy.
Named Peril Coverage – provides coverage for specific perils, such as fire, explosion, lightening, windstorms, and hail, which are named in your policy.
Liability Coverage – provides coverage if you are found legally responsible for an accident that causes injury to someone who doesn’t live in the home or results in damage to another person’s property.
Actual Cash Value – coverage for the cost to replace or repair the damaged property in the event of a partial loss caused by a named peril, minus depreciation and deductible.
Agreed Loss Settlement – coverage for the full value of the home as agreed upon and stated in the insurance policy in the event of a total loss caused by a named peril.
Replacement Cost – optional coverage for a settlement that reflects the cost to replace the damaged property with new property of comparable quality, without any deduction for appreciation.
Consult The Experts
Choosing the right coverage for your vacation home can be complicated. Your BenefitSource Insurance Professional can help. We specialize in evaluating your needs and getting you the right amount of coverage. Call us directly at (877) 215-5431 or email us to discuss your vacation home insurance policy today.
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