Investing in a mountain vacation home as your second home can be worthwhile, especially when you’re planning to travel to the area a few times per year. Part of your investment will be an adequate insurance package and you may need to purchase separate coverage for certain disasters. Insurance coverage for a second home works much the same way as homeowner’s insurance for your place of residence, but you will need to purchase coverage for times when the home will be vacant. You might also need additional coverage when you plan to rent out your mountain vacation home.
Here are some essential tips for insuring your mountain vacation home:
1. Invest in a security system to keep costs down. Installing a central alarm system, smoke detectors and even something simple as deadbolts can help to reduce your insurance premium. Consider making these types of investments so that your mountain vacation home is well-protected from burglaries, acts of vandalism and fires.
2. Be prepared to pay a high premium. Mountain vacation homes located near the coast and those that are at risk for severe damage in the event of a hurricane or other natural disasters will command high insurance rates. Be prepared to pay a high price for even basic insurance coverage, and even more if your vacation home is in a high-risk zone.
3. Consider the benefits of renovation. Renovating your mountain vacation home so that it’s less likely to be damaged easily in the event of a disaster may help to reduce your insurance costs. Consider making a few renovations this year to reduce your insurance premium.
4. Review location options when building a mountain vacation home. If you’re in the process of building a mountain vacation home from the ground up, avoid low-lying areas that may be at risk for flood damage and coastal locations that could be at risk for hurricanes or damage from strong winds. Do some research to seek out a location that may be less prone to damage from severe weather and natural disasters so you don’t have to pay a higher-than-average insurance premium.
5. Shop around for the best rates. Don’t be afraid to get quotes from multiple insurance providers so that you can get the best insurance package. Remember that insurance companies are competing for your business and may be able to offer you discounts and affordable insurance packages when you let them know that you’re shopping around.
6. Be prepared to purchase additional insurance when renting your home. If you plan to rent out your mountain vacation home for part of the year, you will need to purchase additional coverage – such as fire insurance – to protect the building from man-made fires. Liability insurance will protect you from getting sued in the event someone has an accident on your property.
EscapeHomes.com – Insuring Your Second Home
Liberty Mutual Solutions – Vacation Home Insurance
New York Times – Insuring Second Homes