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. As such, it’s important to contact a qualified insurance broker to help assess your needs and build a custom policy for your vacation home.