Insuring A Second Home

Insuring A Second Home

What Coverage Options Are There?

When purchasing a home your lender may require that you have hazard insurance to protect your property against damage from fires, tornadoes, or other severe storms. You also need to have liability insurance, which will cover you and members of your household for accidental injuries to your visitors. Property and liability coverage are the two main components of a standard homeowners policy. For added protection, a personal umbrella liability policy extends your liability coverage to properties on the umbrella policy.

Dwelling Fire Insurance

Most homeowners polices require that the home be owner occupied, which may preclude you from obtaining full homeowners coverage if you only visit infrequently. Dwelling fire insurance is an alternate coverage option utilized in insuring residential rental or non-owner occupancy property, including vacant property.

If you are interested in a dwelling fire policy, here is a bit more information; a dwelling fire policy can offer coverage for a home or other structure such a detached garage or shed and for either replacement cost or for named perils only. Named perils for a typical dwelling fire policy protect against damage caused by fire, collapse, lightning strike, wind, hail, explosion, and smoke. For more information on this type of policy, call us at 262-646-5777.

Renting Out Your Home to Others?

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Whether your other properties are an apartment unit or a family home, if you are renting out the property you may have little control over the physical damage that could occur. To limit your risks, tenant-occupied dwelling insurance can cover the costs incurred by damage, including fire, storms, burglary and vandalism.  It does not; however cover your tenant’s personal property. The tenant should cover their personal property with a renter’s policy.

Whether you are renting your property furnished or unfurnished also has insurance coverage implications. Make sure to discuss whether your property is furnished or not, so we can provide adequate coverage.  We can advise you on the best coverage options.

As with all insurance policies, it is vital to be sure that there is enough coverage to protect all of your property’s values and assets when purchasing coverage.

Cost Considerations

Whether your second home is reserved for your private use or doubles as a rental, the cost is generally more than your primary residence. Premiums are based on a variety of risks such as the amount of time that your home will be unoccupied, its location, etc., and the liability from renting the property and these factors can result in a higher premium.

Depending on your location and type of second home, risk of hurricane, wildfire, or factors such as having a pool  can increase your premium or make coverage more difficult to obtain. If you are considering purchasing a second home, contact us at Midwest Insurance group to learn more about the cost of insuring your future properties.