4 Easy Steps to Cheap Homeowners Insurance For Your Vacation Home
There's nothing like having your own vacation home. Knowing as you're sitting in your office staring blearily at the rain pounding against your windows that somewhere out there is an entire house dedicated to nothing but making your vacation as enjoyable as possible. That somewhere out there is a house full of televisions, bookcases and happy memories where bosses and the 9 to 5 grind just don't belong. There's only one glitch in all this vacation induced bliss-you to need to ensure your vacation home with a good homeowner's insurance policy, and that insurance coverage isn't going to come cheap.
So what can you do?
Why Vacation Insurance is More Expensive
Have you ever wondered why it costs you more to insure your vacation home than the one you spend the entire rest of the year in? Because your second home has a better chance of costing your insurance company money. Imagine the disasters that could be taking place in your unoccupied vacation home as we speak: Thieves breaking in and stealing all your electronics, a small electrical fire is sparking up and consuming your home in a giant blaze and your neighbors are hosting a drunken party around your pool without your permission.
We're not saying that's what's happening. We're just saying it's possible. At least, that's what your home insurance provider is going to think when you call them up to buy homeowners insurance for your vacation home!
4 Steps That Will Help You Find Cheap Home Insurance
Since the "higher risk" of your vacation home in terms of profit and loss is going to drive your premiums up it's important to learn how to get a little bit of your own back! Just because your second home insurance will never be as cheap as the insurance you have on your full-time residence doesn't mean that you have to go broke paying your premiums. There are some things you can do to pave the way to cheap homeowner's insurance, giving you lower monthly payments and more money to enjoy your vacation rather than having to pay for it.
For example:
1) Buy a home in a gated community. The major concern for most homeowners insurance companies when it comes to insuring a vacation home is the fact that it's unoccupied and therefore more vulnerable. Investing in a gated community can shave up to 10% off of the price of your policy while giving you the peace of mind that comes with knowing your home's in good hands.
2) Consider renting out your vacation home if you're not in or, if being a landlord doesn't suit your preferences and lifestyle, bring in a caretaker to keep an eye on the property when you're not there. Your home insurance provider may not give you a discount for this, but they may lower your home insurance rate knowing that your vacation home won't be standing empty.
3) Invest in a low-risk area. Florida during hurricane season is notoriously hard on vacation homes, and the added risk is going to drive up your premiums. If you were to invest in New York, on the other hand, you would have a much smaller chance of watching your home crumble in front of your eyes. That doesn't mean you have to invest in the Northeast (it gets cold up there!) but you want to look for someplace that will keep your home that safe and sound.
4) Consolidate your policies. You can cover your home, your vacation home, your car(s) and your boat(s) under a single umbrella policy through your homeowner's insurance, and the price tag is usually going to be cheaper than trying to cover them separately.
