For many people purchasing a vacation home is a dream come true. While it’s great to be able to have a place you can always go to get away from everyday life, there are certain expenses you may not have anticipated. Depending on where your second home is, the cost of your insurance could be one of those areas of increased costs.
Why is the Coverage More Expensive?
There are a number of factors that can impact the cost of insurance for your vacation home. Vacation homes are usually located in special areas – near a beach or lake or in the mountains – not in your regular city or suburb. This usually gives insurance companies cause for concern because access to emergency services may be limited or the chances of weather damage may be higher. A few examples include:
Your vacation home may also be vacant a lot of the year unless you rent it out. A home that is vacant runs a much higher risk of becoming a target for burglars and vandals. Even if your vacant home was only damaged by bad weather, the damage might not be noticed for an extended period of time, allowing it to become worse than damage that is noticed and dealt with right away.
How to Keep Your Costs Down
The good news is that there are things you can do to minimize the cost of your vacation home’s insurance policy.
Don’t let the cost of insurance scare you away from buying the vacation home of your dreams. Use caution when making your choice and talk to your insurance professional before you buy and sign on the dotted line. Their knowledge and experience can help guide you in your purchase. You may end up paying a bit more, but the added cost will be worth the investment.