Part of the series provided by Chalmers Insurance Group
Owning a vacation home has many benefits that both you and your family can enjoy for a lifetime. However, many don’t realize that insuring vacation homes is complex and often very different than coverage for primary homes.
In fact, the way you utilize a property and how often it’s occupied has a direct impact on the kinds of insurance you will need. Vacation property insurance is typically provided as a “named perils” policy. This essentially means that coverage for vacation homes is not comprehensive, and owners must secure coverage for specific risks, like fires or explosions.
In order to properly protect their investment, vacation homeowners should consider the following types of coverage:
- Contents coverage—Typically, standard home insurance policies protect any property that you transport back and forth between homes. Contents coverage fills in the gaps and protects any items that are permanently kept at your vacation home.
- Replacement cost coverage—This type of insurance works 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.
If you rent your home out to others as a Vacation Income Property, business insurance may be needed to protect against varying exposures. This goes for long and short term rentals, Airbnb, HomeAway, and other sharing services.
For example a homeowners policy is designed to protect against risks associated with a homeowner occupied dwelling whereas a landlord policy is protecting against the risks of others living in your property. Those are two very different uses of a property.
As such, it’s important to contact a qualified insurance agent to help assess your needs and build a custom policy for your vacation home. Chalmers offers homeowners, secondary, seasonal, and CVIP – Chalmers Vacation Income Property insurance.