Zielonka Financial Services LLC

(888) 967-1040

Insurance Read Time: 2 min

Insuring Your Second Home

Vacation home sales rose 57.2% year-over-year by June 2021, much higher than the 20% increase in existing home sales.1

When it comes to insuring your second home, you may find that the coverage you need is quite different from what you have on your primary home.

The Unique Risks of a Second Home

Your current homeowners policy may allow for coverage of two properties under one policy, but because there are unique risks with a second home, a separate policy may be more conducive to obtaining the coverage you need.

Here are some of the special risks you may need to cover:

  • Long Periods without Occupation

    An unoccupied home can invite trouble. Without a presence, there is no one to fix a leak, respond to weather damage, or even report a fire. It also may become a target for burglars.

  • Isolated Location

    While seclusion may be a top priority for a vacation home, it also means that you may be far removed from the services that can prevent larger losses, such as a fire hydrant or fire department.

  • Renters

    Renting out your home when you’re not using it may be a good idea to offset the costs of ownership. However, having renters (or even guests) may increase your liability to any damage or injury associated with their stay.

Be sure to work with an agent to secure the right coverage. Also, discuss the benefit of raising your personal liability coverage to protect you from any increase in risk to your personal wealth that may come with offering your home to guests and renters.2

1. National Association of Realtors, June 15, 2021
2. The information in this material is not intended as legal advice. Please consult a legal professional for specific information regarding your individual situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Insurance Needs Assessment: Married With Children

Insurance Needs Assessment: Married With Children

When you’re married and have children, insurance needs will be different.

A Fruitful Retirement: Social Security Benefit

A Fruitful Retirement: Social Security Benefit

Taking your Social Security benefits at the right time may help maximize your benefit.

Diversification, Patience, and Consistency

Diversification, Patience, and Consistency

Three important factors when it comes to your financial life.

 

Have A Question About This Topic?







Thank you! Oops!

Revising Estate Strategy Assumptions

Estate tax exemptions rules appear to be stabilizing, prompting many to reconsider conventional estate strategies.

Orchestrating Your Retirement Accounts

Getting the instruments of your retirement to work in concert may go far in realizing the retirement you imagine.

The Investment Risk No One’s Ever Heard Of

You face a risk for which the market does not compensate you, that can not be easily reduced through diversification.

View all articles

Social Security Taxes

Estimate how much of your Social Security benefit may be considered taxable.

Comparing Mortgage Terms

Estimate the total cost in today's dollars of various mortgage alternatives.

How Compound Interest Works

Use this calculator to better see the potential impact of compound interest on an asset.

View all calculators

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

View all presentations

Don’t Myth Out on Whole Life

Whole life insurance can help protect what matters most: your family, your assets, and your legacy.

Safeguard Your Digital Estate

If you died, what would happen to your email archives, social profiles and online accounts?

Jane Bond: Scaling the Ladder

Agent Jane Bond is on the case, uncovering the mystery of bond laddering.

View all videos