Second Home Insurance
Having a second home insurance is not something only for the rich to worry about, but also for some people who have taken real estate to be their instrument for investment. Thus, insurance for a second and succeeding home is important, for these investments to be protected. However, insurance for a second home can be an added cost, due to your second home being unoccupied for a long period of time throughout the year. Hence, the price for this insurance cannot really be appreciated by the policyholder.
Tips on How to Get a More Affordable Second Home Insurance
However, there are actually a number of things a possible policyholder can do to make a second home insurance more affordable and at the same time, make sure that the coverage offered by the policy is still enough. Here are some tips:
How to Get a More Affordable Second Home Insurance Tip #1
Someone to watch over a second home, literally and figuratively, can lower insurance expenses. For example, a second home located in a gated community will give the homeowner a discount of ten percent. A markdown of 25 percent can be taken advantage of by a homeowner if he or she has proof that his or her second home is located in a rural area and the local fire department will have a steady water source. Residences with caretakers do not have discounts, but having one will make insurance companies be more assured regarding the home’s standing, and thus, they’ll consider the homeowner’s business more than dealing with a second home that doesn’t have a caretaker.
How to Get a More Affordable Second Home Insurance Tip #2
Installing an alarm system that detects intrusions and smoke for possible fires can cut as high as 20 percent off the cost of a second home insurance, at least according to insurance insiders. A basic alarm system is something that’s not that affordable, but it’s worth the investment.
How to Get a More Affordable Second Home Insurance Tip #3
Having the same insurance company to handle a first and second home will bring savings to the homeowner by as much as 10 percent. A good number of insurance companies have packages that handle as much as three homes, as well as cars and even a boat. That would be beneficial to homeowners who want to save a little on their insurance premiums.
How to Get a More Affordable Second Home Insurance Tip #4
A homeowner won’t need to take advantage of a second home insurance if he or she has a condominium unit as a second home. This is because coverage for the structure is provided by the condominium association, the cost of which is passed on to the condo unit owner as part of association dues. Insurance for a condominium unit that the owner should still get is for the contents, as these are not included in the condo structure insurance.
Final Point to Remember with Second Home Insurance Policies
A second home owner should remember that if he or she rents out his or her second home, the cost of the second home insurance would go up by 20 percent. Insurers feel that a greater risk is involved if the policyholder is not the only one occupying the home, which is why they charge a higher premium to homeowners in this situation. Tenants should also remember that if they are renting a second home, they would need to get themselves coverage insurance, since their possessions will not be covered by the coverage of the landlord.