Getting insurance for your property is crucial whenever you invest in a home, notwithstanding if you have only one or if you decide to buy a second property – especially one situated in Lake Chelan. Note that a second home
also deserves the same protection as your first.
Here are things to consider when getting second home insurance for your vacation property.
- Coverage
Get insurance coverage for your second home that is just as comprehensive as your primary residence. If you’ll only be using your other property on occasion, your insurance company may come up with a “named perils” policy for you. Examples of said perils include:
- Fire or lightning
- Hail or windstorm
- Riots
- Falling objects
- Explosions
You can also opt to include liability coverage for any personal injuries that may befall people staying on your property.
Moreover, if you have an existing policy on your first home, you can negotiate with your provider to extend coverage to both of your properties.
A number of factors can affect the cost of your second home insurance, including location, age and overall condition of the home, and the size and type of property. Certain circumstances may also make your second home insurance more expensive than the first, such as being in a disaster-prone area, or the property was neglected for a relatively long time, or it has several luxury amenities, such as a pool or spa. A beach or lakefront location may also require a separate flood insurance policy.
Many owners of a second property would turn these into rentals when they’re not using them. You can opt to do so, too, but you may need to take out short-term or long-term rental insurance to protect yourself from issues that may arise relating to tenant liability, physical injury, and medical payments. You may also encourage your tenant to purchase their own policy to protect them from losses since your coverage does not account for their personal possessions.
The purchase, maintenance, and protection of your second home will certainly cut into your finances. To minimize your cash outflow, here are some tips:
- Choose a property in a low-risk location. Admittedly, there are very few places these days that have zero risks. Mountains run the risk of landslides or avalanches. Living near a body of water, meanwhile, may expose you to the risk of flooding or, at worst, tsunamis. This is why you will need the advice of your Lake Chelan real estate agent who can recommend good locations and provide suggestions on how to mitigate risks.
- Negotiation is key. If you use the same insurance company for your first and second homes, you may be able to negotiate a lower price for the latter.
- Beef up your security system. Fire and theft alarms, security cameras, and other high-tech protection systems lower the chance of filing a claim. Your insurance provider is more likely to give you better coverage, seeing that they can save money through you.
- Compare quotes. Talk to at least three different providers and compare their quotes. Select the one who can give you more detailed coverage at a reasonable price.
For more home insurance recommendations and other great ideas for your Lake Chelan real estate, work with the top Realtors here today! Our team at Coldwell Banker Lake Chelan Properties will be happy to assist you. Call us at 509.682.7777 or send a message to info(at)CBChelan(dotted)com.