Seasonal Home Owners

Like any residence, a vacation home needs to be insured, but because the risks are different the coverage may cost more than your primary homeowners policy. Before you jump into second home ownership, consider the factors that will likely affect the cost you’ll need to pay for insuring it.

Some key factors that can impact vacation home insurance costs:

Location is always a factor in homeowners insurance costs.

For example, you need additional insurance if your dwelling

is in a flood. With vacation homes, the very location that makes

a place desirable may also make it more expensive to insure.

For instance, a ski house or hunting lodge in a remote or

mountainous area could be at greater risk for damage due to

wildfire. A beach house may be more exposed to wind damage

or storm surge from a hurricane. These location based risks

will impact the price of coverage, and in some cases may

even require higher deductibles.

Type of property. As with any house, the age and type of building materials used in a vacation home will impact the cost of insurance. What's also important is whether your second home is a single-occupancy house, a condominium or a townhouse. A condominium in a ski resort area, for instance, may have lower insurance costs than a stand-alone chalet. This is because a homeowners association maintains the                                                                           property, and may provide some security. Importantly, the association                                                                     insures the exterior of the property (the cost of is generally included in                                                                   the monthly maintenance fees). Your personal condo insurance will                                                                         cover the specific areas of the unit listed in the policy, as well as your                                                                       belongings. Amenities. Though wonderful for relaxation, pools and hot                                                                   tubs add risk to your second home. If your vacation residence is                                                                               equipped with these or other special amenities, you may pay a higher                                                                     insurance premium and you should also consider additional liability                                                                         protection, which will increase insurance costs, as well.