Comprehensive Financial Solutions, Inc.

440-343-4223

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

Why Consider Life Insurance and What Type

Why Consider Life Insurance and What Type

Key uses for life insurance and the difference between whole life and term

Are Alternative Investments Right for You?

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

5 Ways for Caretakers to Make Your Well-Being a Priority

5 Ways for Caretakers to Make Your Well-Being a Priority

Studies show that now more than ever, today’s women are disproportionately responsible for caring for children, doing laundry, cooking and cleaning, despite many having full-time careers. What’s more, when compared to their male counterparts, women are also more likely to report having difficulty finding the time to manage their physical, mental and emotional health.

 

Have A Question About This Topic?







Thank you! Oops!

Immediate vs. Deferred Annuities

Looking forward to retirement? It's critical to understand the difference between immediate and deferred annuities.

The 12 Steps to Living Confidently: Retire With Confidence

There are good ways to retire and bad ways to retire. Retire the right way by better understanding Social Security.

When to Self-Insure

Choosing to bear the financial burden of an adverse event is called self-insuring. Do you know what that entails?

View all articles

Potential Income from an IRA

Estimate your monthly and annual income from various IRA types.

Federal Income Tax

Use this calculator to estimate your income tax liability along with average and marginal tax rates.

What Is My Risk Tolerance?

This questionnaire will help determine your tolerance for investment risk.

View all calculators

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

View all presentations

Video: The Independence of Financial and Emotional

Greater financial and emotional confidence brings greater independence. Isn’t that what it’s all about?

Encore Careers: Push Your Boundaries

Ready for retirement? Find out why many are considering encore careers and push your boundaries into something more, here.

The Other Sure Thing

Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?

View all videos