Understanding Insurance Issues

Tips For Insuring A Second Home

If you own a house already and are in the process of buying a second home to use as a vacation home, you will need to contact a home insurance company to purchase a policy for this new house you are buying. As you do this, here are several things to know about insuring a second home.

You should bundle

Bundling is a common service offered by most insurance companies, and it is one of the best ways to save money. Additionally, bundling helps you stay organized, as it offers a way to purchase all your insurance policies from one company. Bundling is the process of purchasing all your insurance policies from the same company, and you can do this if you own two homes. People also bundle their car and home insurance policies as a way of saving money.

You may need extra types of coverage

When you purchase home insurance for your new vacation home, you should not be surprised if the company tells you that you need extra types of coverage. For example, if your new home is in a flood zone or a hurricane zone, the insurance company might tell you that you need to add flood coverage to your policy. Flood claims are not covered on regular insurance policies, but they are covered when you have flood insurance.

Your policy might cost more

Even if you do not need to purchase flood insurance or any other type of extra coverage, you should not be surprised if the policy costs more than what you are paying for your primary residence. One of the reasons for this is due to the fact that the home will be vacant for a good portion of the year. When a home is vacant, it is more likely to be vandalized and robbed, so you should expect your policy to cost more for the house even if the house is not worth as much as your first home.

It will also depend on the type of home

Additionally, if you buy a home that is part of a homeowner's association (HOA), you might get a discount for your policy. Homes that are part of HOAs are often townhouses, condos, or other forms of multi-family homes, and these homes may not need as much insurance coverage.

If you need a quote for home insurance for a second home you are buying, contact a homeowner's insurance agency, like Bishop Insurance Agency, today to get started with a free quote.