Owning a seasonal or second home can be a rewarding experience. You can use the home when you would like to. You may even rent it out for income. But, these second homes are valuable investments. You need to protect them with appropriate home insurance. How do you do that?

Home Insurance Is Necessary

First, if you own a seasonal home and you carry a loan on it, the lender will likely require full coverage for the home. This means having a policy with proper property and liability coverage. This protects the lender’s investment.

Even if you do not have a loan, it pays to have a policy in place to protect the home at all times. You do not want something happening to your home without proper coverage.

Talk To Your Agent

Seasonal homes can be a bit more difficult to insure than your primary residence. Since you do not live in the home, the insurer cannot provide a basic policy to you. The home is also not continually occupied. So, the risk of theft, vandalism, and even fire are often higher than those of your primary residence.

To minimize the risk of having to pay too much for coverage, speak to your RCU Insurance Services agent about your home. Be sure the policy reflects your usage of the home. This helps ensure your agent can properly protect your investment.

Do You Rent It?

Some property owners rent out their seasonal home when not in use. If you do this, be sure to tell your insurer about it. This may change the type of insurance coverage you need. Even if you use a property management company for the rental, you need to protect your investment. If the insurer learns you are renting the home but lack the right coverage, you may not have protection for a claim.

Bundle It

Another way to reduce coverage is to bundle the coverage of your seasonal home in with your primary residence. When you bundle, you’ll buy two policies with the same company. Therefore, you often reduce the risk for the insurer. You also can save money on your policy. This may help you secure the seasonal coverage you need. Nevertheless, do not attempt to insure two homes on the same policy, or with the same limits. The rule is one home, one policy.

Home insurance for a seasonal or second home should fit that value of the home. Work closely with your RCU Insurance Services agent to update your policy to reflect the way you use the home. This is especially important for instances when the home is not occupied year-round.