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Rental Properties Insurance

Rental Property Insurance

Don’t we all love a home with an ocean view while enjoying the warm summer breeze. Nothing compares to the calming sound of the waves crashing into the shore. And ,the sight of the 7:00pm sunset with your loved ones. Well, this all makes up the perfect destination for a vacation home or to have rental properties.

There’s a lot that a vacation home and rental properties can offer. Ranging from, a change of scenery, a chance to get away from your everyday lifestyle and even an extra income in the case of rental properties. In fact, they also require very different type of home insurance coverage.

Do you have a vacation home or a have rental properties, live on the beach or in the mountains? If so, this blog will walk you through how to get insurance for your second home or rental properties. This way, you can enjoy that incredible view without worrying.

Key Points:

  • Second home insurance is coverage for other properties separate from your primary residence.
  • Insurance for second homes or rental properties typically cover the structure of your second estate. And, the contents inside that estate.
  • Also, second home insurance policies tend to be more bounded and involve named perils.

Can I insure two homes under the same insurance policy?

Typically, you cannot insure two homes under the same insurance policy. This is because each home is prone to different risk factors. To protect the structure of your second home or rental properties. And, all the valuables inside, you’ll need to buy a separate home insurance policy.

What does my second home insurance cover?

Remember, most basic home insurance policies, including second home insurance policies, will have dwelling coverage. Some options will include both dwelling and belongings coverage.

In terms of liability coverage, you’ll want to see if your primary residence’s liability insurance can extend to your second home. This will protect you if someone’s injured in your second home. For example, if a guest staying in your residence falls down the stairs or trips and falls off your porch. Also, be sure that your liability coverage extends to risks posed by potential items at your second property. Such as, fire pits, hot tubs or in-ground pools.

What does my second home insurance not cover?

Here are a few things that aren’t covered in second home insurance that you may consider adding on to your second home coverage:

  • Boat insurance policy. If your second home includes a boat, your primary home insurance coverage won’t cover it, so it’s a good idea to get your boat separately insured. Click here to learn more about watercraft insurance.
  • Personal umbrella policy. This double-downs on your liability coverage. Evaluate the risks your property holds and consider adding on some extra liability coverage. Click here to learn more about umbrella insurance.
  • Flood, hurricane or earthquake insurance. Suppose your second property is in a place where certain natural disasters are more common. In that case, you may want to consider adding a rider to your policy to cover those instances. Such as, floods, storms, or earthquake insurance. It’s better to predict the worst when it comes to weather, and adding this insurance to your second property is one way to do so. Click here to learn more about natural disaster protection.

What do I need to know about insuring a vacation home?

Insuring your vacation home depends on a couple of factors—namely, location, the type and state of the property and liable belongings. Depending on where your second home is on the map, you’ll need to take into account the risks of the environment in that area.

While a remote log cabin in the middle of the mountains might seem like a perfect getaway, it’s also susceptible to wildfires, snowstorms and exposure to related natural disaster elements. This increases the coverage needed to insure it completely.

On the other hand, with a house or an apartment, factors like how the house became built, how long ago it was made, and the structure’s current architectural integrity play a great role in the home’s overall safety. Along with the building’s condition, you’ll need to keep in mind what type of building it is.

Along with the geography and structure of your second residence, you must evaluate the contents inside. What items do you have that pose a risk? Pools, artwork, firepits, hot tubs, or expensive technology, must become insured if fate doesn’t work in your favor and an unfortunate events transpire in your residence.

What do I need to know about insuring a rental home?

If you’re renting out a property for short periods of time repetitively, that will look different from an insurance perspective than if you were to rent it out to one family for up to four months. In the first case, if you rent out the property frequently and for a short time, it may consider as a business. This would require you to establish a business policy for the property. One way to save on insurance costs would be to take extra precaution when screening tenants.

However, if you’re only looking to rent the place out once, check your current homeowners insurance policy and contact your insurer. The policy may extend or only require a paid endorsement to cover the short-term, one-time renter.

If you’re looking to rent out the property seasonally, you’ll want to look into getting landlord insurance. This will protect you from any damage done by the tenant and help you maintain a thorough screening process to assess the tenant.

So, before you post your second home on Airbnb and tell all your friends and family about it, think about how often you’re looking to rent it out, what procedures for vetting the tenant would look like and insure the property accordingly.

Protecting your second home isn’t complicated

Even if your home is off the grid, in the middle of nowhere or in the deep in the woods, or right against the ocean next to palm trees, if you’re looking to get insurance for your second home, get in touch with our experts to get a home insurance quote today. We’re here to help!

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