Home Sweet Vacation
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As we inch
closer to spring and the advent of warmer weather, in spite of the snow and
ice, our thoughts turn to the possibility of a personal get-away…perhaps a
second home on a lake…or even a yacht! A vacation home should be a pleasure,
not a pain, so you will want to make sure you understand what is and isn’t
covered by your homeowner insurance policy. And in all likelihood, the rate to
insure your vacation home will be lower since it is a seasonal or second home.
I thought my insurance covered that!
Freezing Pipes. The damage caused to your home by
freezing pipes that leak or burst, depending on the case, may not be covered by
your insurance. Insurance examiners look at the general condition of the pipes
to determine if routine maintenance has been performed. If you do not
frequently visit your vacation home during the cold winter months, it is a good
idea to have temperature sensors that monitor the temperature within the
home. The sensors can detect when it
dips to near or below freezing and activates the main water shut-off valve. And remember, the cost to repair the pipes is
your responsibility and not part of the claim.
Flood Damage. Flood is not covered by the
standard homeowner’s policy; however flood coverage can be purchased. If a lake
or stream overflows, even though it may be the result of a rainstorm, and
enters your dwelling – that’s flooding. So keeping in mind your location and
geography, you and your agent may want to discuss the need to purchase flood
insurance.
Can I rent my home out? Many companies frown on the practice of renting out your
vacation home; however, they may make an exception if you limit your renters to
family and friends and rentals don’t exceed 30 days in a given year. However,
there is a way to accommodate the home that is rented out in excess of 30 days
in a given year. This can be accomplished by purchasing a rental dwelling
policy instead of a homeowner policy. The cost may be higher, but the coverage
will be more appropriate.
Boats and Personal Watercraft. Most homeowner or renter insurance
policies provide liability and limited property damage coverage for small boats,
such as canoes, small sail boats and outboard motorboats with less than 25
horse power motors. If the value is in excess of $1,000, you will want to
either schedule your watercraft on your homeowner/renter policy or purchase a
separate policy. The size, type and value of your watercraft and the waterways in
which you use it are important factors for developing the rate of your
watercraft’s insurance. However, your driving record and your boating experience
also help determine your premium.
Larger and
faster boats and personal watercraft such as jet skis and wave runners may
require a separate boat insurance policy. Yachts, because they are like homes
on water, will always require a separate policy. You may want to inquire about
special equipment kept on the boat, such as fishing gear, to make sure it is
covered. Also verify that towing coverage is included in your policy.
Never
fear, summer is coming and purchasing a personal getaway – whether on land or
on the water – is a wonderful investment…financially and emotionally!
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