Choosing to buy a second home means you will also have to take the necessary measures to protect it. Before you close, you must have an insurance policy in place to protect both your investment as well as that of the bank. Buying a second home is somewhat different than buying your first home. Some lenders consider a second home to be more of a risk because it is not your primary residence. Much will depend on how you intend to use it.
Does Your Primary Homeowners Policy Cover a Second Home?
There are a few primary homeowners policies that will protect a second home if you choose to buy one. If this is the case, you won’t need to purchase an additional policy. Talk to a reputable agent who can guide you through the process if your primary homeowners’ policy does not cover a vacation home. Agents can offer a wealth of information that will allow you to know what coverage options you have and what you may need to purchase.
Why Do You Need a Second Home Policy?
If you plan on living in your second home for part of the year, it may be covered under your primary homeowners’ policy. Renting it as an investment property is a different story. If you purchase a second home to be a rental, odds are you will need a separate policy that covers more than just your traditional homeowners’ policy. A rent loss policy may also be beneficial if you plan on renting the house out on a full-time basis. Having your home and its belongings covered is extremely important. If you are treating your home as a way to make money, you will need to look at it as an investment and insure it as such.
Why Is Buying Policy for a Second Home Different?
Depending on how you plan on using your second home, you will expose yourself to different risks. As a rental property, you don’t know how your tenants will treat your property. If you plan to keep your second home as a vacation getaway, it may end up staying vacant for long periods. This introduces a new level of risk that may be quite costly if your home isn’t properly covered. It’s also important that you buy the coverage you need against any natural disasters common to the location.
Buying a second home can be an interesting journey. It’s also quite challenging when you have to deal with a multitude of risks that may not be present in your current home. Our agents at Scautub Agency can help you understand the process and get the coverage you need to protect your investment and secure your vacation home. We have the knowledge to help you get the right coverage you will need no matter how you intend to use your second home. Protect yourself and your investment by scheduling an appointment today.