What is Vacation Home Insurance?
Vacation home insurance policy is coverage designed to offer financial protection for individuals who own a second home that is used for vacation or rental purposes. It can offer many forms of coverage, including liability coverage for property damage or bodily injury caused to others, as well as coverage for damages caused by natural disasters, theft, or vandalism.
Vacation home insurance can also offer personal property coverage for belongings such as furniture, electronics, and clothing.
How Do I Choose the Right Vacant Home Insurance?
If you select vandalism and malicious mischief coverage as part of your insurance policy, it can protect your vacant home in the event that it is intentionally damaged.
A 12-month policy can provide a full year of coverage, with flexible payment options and the ability to cancel and receive a prorated refund (subject to a minimum amount earned) if your home becomes occupied before the end of the year. With Farmers Insurance, there is no need to cancel and obtain a new policy when a tenant moves in.
In most states, the insurance policy for a vacant home can be easily converted to a landlord policy or an owner-occupied policy if you decide to move in yourself.
How Much Vacation Home Insurance Do I Need?
Figuring out how much insurance to get for your vacation home can be tricky. The value of the property and the level of coverage you need should both be factored into the decision. Risks such as natural disasters, theft, or damage from renters are also important to consider when selecting a plan that's right for you. Ultimately, having the right amount of coverage can give you peace of mind knowing your vacation property is secure.
What Are the Different Types of Vacation Home Insurance?
- Standard Homeowners Insurance - This type of insurance provides coverage for damage to your property and personal belongings, as well as liability coverage in case someone is injured on your property.
- Vacant Home Insurance - This type of insurance is designed for properties that are unoccupied for an extended period. It typically covers risks such as vandalism and natural disasters.
- Rental Home Insurance - This type of insurance is designed for properties that are rented out to tenants. It typically covers risks such as damage caused by renters and loss of rental income.
- Flood Insurance - This type of insurance covers damage caused by floods, which is not typically covered by standard homeowners insurance.
- Earthquake Insurance - This type of insurance covers damage caused by earthquakes, which is not typically covered by standard homeowners insurance.