Vacation Home Insurance

WHY YOU NEED TO INSURE YOUR

VACTION HOME

   After all, you aren't there all the time. You don't have nearly as much personal property there. Do you really need to insure it? Yes. Yes you do.

 You're right, you aren't there all the time. If no one is there, how will anyone notice a leak? Or catch a fire before it blazes out of control? What if you get burglarized? Chances are no one will be there to prevent or at least handle these situations on a timely basis. This means the damage could be much worse than it would have been if someone lived there full time. These are high risks you don't want to pay for on your own. 

   Many vacation homes are in rural or beach areas. Let's say you are there when one of those situations occurs, but the fire /police departments are miles away and they take 30 minutes to get there. A fire can destroy an entire home in that amount of time. A leak can destroy your entire flooring. A burglar can empty your home. These are a high risks you don't want to pay for on your own. 

   What if you rent it out or let friends/family stay there when you are not there?  Somone trips over a rug and breaks their leg. Or someone starts a fire in the kitchen and can't get it out. You can be liable for injuries and or damages, even if you are not there. These are high risks you don't want to pay for on your own.

   You have worked hard to buy that secondary home for your family to enjoy. If something happens, you want to make sure you have adequate coverage for that vacation home, just like you do for your primary home. 

Just like your primary home insurance, there are many optional coverages and many carriers to choose from. Talk to your agent and work through what you want and need in coverage. Most primary home policies will not extend much coverage to a secondary property. So you will need a separate policy for your vacation home.

There are few options I urge you to consider.

Personal Umbrella Policy (PUP): This is an extra Liability policy that will pick up where your home/auto policies stop. So if you have a liability claim of $500,000 and you only have $300,000 in Liability coverage on your secondary home policy, your PUP will kick in and cover the rest. The more properties, cars and toys (boats, motorcycles...) you have, the higher the premium will be for the PUP. But the added coverage can be a financial life saver.

Fair Rental Income: If you are renting out your secondary home, I highly recommend this coverage. If the home becomes uninhabitable (therefore un-rentable) due to a covered loss, you can be paid the rents you would lose during the time it takes to repair the damage. 

Coverge Amount: As I explained up above, you are more likely to have extensive damage from a fire, leak or burglary because you are not there full time. Make sure you have enough dwelling coverage to cover a total loss. Don't go cheap because you don't use the home as often. You need complete coverage because of the lack of time you spend there. 

Every carrier is a different in what they will/will not cover, what type of policies they will/will not write. So, I wouldn't get your heart set on "bundling" by trying to make sure your secondary home policy is with the same carrier as your primary home policy. That is not always an option (your primary home carrier may not even write secondary homes). Sometimes they won't have the best rate. So be open to the quotes your agent offers you. Of course, if you are with a captive carrier, you won't have many options. Again- I urge you to find an independent agent and see what they have to offer. 

Have other questions? Need a quote?

                

                                                                    

                 
         

* Visit brockmanpremierins.com

* Call  877-987-8683 

*Email  quote@brockmanpremier.com    

New Years Changes

Here's to a New Year!   

Well, 2019 is ending and 2020 is beginning. I have to say I am not sad to say goodbye to 2019. Here's to a wonderful 2020!

The start of a new year is a time to re-evaluate our closet, pantry, decor, vocation, relationships. It is a great time to look at our lives in general. I'm not big on New Year's resolutions. I have not been good at keeping them long. But I do think it is a good time to look are our homes and make some changes.  

If your family is anything like our family, you have packed away the Holiday decorations. Yet somehow the house doesn't look the same as it did before you put them up. That small time of unfamiliar is the perfect time to make some changes. You are already in the mood for new and different and you have created space in your home by removing the decorations. 

 #1 Did you get something new? Donate something old!

If you get a new robe, give away the old. How about a new blanket? Maybe you can give an old one to a shelter or a person in need. Even if they are a bit ratty, animal shelters can use old blankets and towels! Did you get new sneakers? Are the old ones still in decent condition? There are many people in need of decent shoes!

#2 Did you get gifts you don't want? You don't have to keep them.

I am a pack rat and I also worry that anyone who gives me a gift will want to see it used. But I have to admit that many gifts end up in a cabinet or closet somewhere. We had a rule, if we didn't use an item in the last year, it's time to give it away. But now I try to give away unwanted items as soon as I realize I will not use them. This helps me not have to do a massive clean up down the road. (Do you have one of those closets you cannot open?)

#3 When did you last clean out that medicine cabinet?

There may have been a time or two when I cleaned out our medicine cabinet and found medicine that was over 2 years old! If you are anything like me, you buy an over the counter medicine for temporary symptoms and then then shove it to the back because it's no longer used. It's unsafe to use medicine after it's expiration date.  Do you always check the date before you take the medicine? Does your spouse or your kids? I know it doesn't happen in our house. Try to go through and throw out the expired medicine once a year. 
Do the same for your refrigerator and your pantry. Expired food needs to go!

#4 Do you really need two of those?

I am also a gadget queen. I LOVE gadgets, especially kitchen gadgets. I also, forget that I have already bought things. This is a good time to go through your kitchen cabinets and give away things you haven't used at all in the last year (even if you just KNOW you might need it sometime). Also look for things you have more than one of. At one point I had 5 different sets of measuring spoons. Same measurements, just different spoons! I am a firm believer you cannot have too many bowls or too many spatulas. But if you don't have the space for multiples, I promise you can survive with only one of each!

#5 New year, new insurance?

Most insurance policies are 12 months long. But that does not mean they start at the beginning of the year. Since making changes are already on your mind, you may begin thinking of other things you can re-evaluate. You can reevaluate and make changes to your insurance policy any time. You don't have to wait for the renewal. Take a look at your policy. Look at things like contact information, housing value, coverage amounts. Sometimes the most obvious things (like changes to your contact information) are the very things we overlook. Things that may affect your coverage are adding a swimming pool, a trampoline or a new dog. It's a good idea to check in with your agent and discuss your policy.

Have questions? Need a quote?    

* Call us  877-987-8683  * Visit brockmanpremierins.com 

Home Insurance Basics

Back to Basics-Homeowners Insurance

   Have you tried to read your insurance policy and just given up? It can be very confusing! Our goal is to help you understand your insurance policy.

    Every policy (regardless of type) should have a Declarations Page, commonly referred to as the “Dec Page”. This page “declares” who you are, what property you have insured, your coverage choices and how much you are paying for this policy period. You will get a new one for each policy period.

There are 2 basic types of coverage on your Home insurance policy: Coverage that protects you and coverage that protects the other party.

Coverage that protects you:

Coverage A- Dwelling Value:  The dwelling value is set at or above the estimated replacement cost of the home. This includes the cost to haul away debris, the materials and contractor’s overhead & profits. This coverage can be written at Actual Cash Value (the value to rebuild the home minus depreciation based on the age of the home) or at Replacement Cost (value to rebuild the home at today’s quality and price). I suggest Replacement Cost policies. Many people ask us to match the coverage to what they bought the house for. Remember- Insurance is meant to make you whole again after a loss. The Dwelling Value isn't isn't based on how much it would cost to buy your home again. It is based on what your carrier is willing to pay out if you had to build your house from the ground up.

Coverage B- Other Structures: This covers buildings SEPARATE from the house, such as a pool, fence, storage shed, detached garage, etc. This usually defaults at 10% dwelling value. It can be lowered to save money or raised to increase coverage.

Coverage C- Personal Property:  Covers your contents of the home. This can also be written at ACV or Replacement cost coverage. If you have a total loss to the home, the carrier will write you a check for the total personal property, regardless of whether you have RC or ACV coverage. If you have a partial loss such as a small fire or theft, they will only give you the coverage you have paid for; meaning if you have ACV coverage, your 8 year old TV will only be covered for the value of an 8 year old TV. If you have Replacement Cost, your coverage will cover the cost of a new TV.

Loss of Use:  This provides reimbursement for reasonable increases in living expenses (such as a hotel room or apt) due to a covered loss, if your home is uninhabitable. There is usually a set amount as well as a set time period. Once the home is inhabitable again, you are expected to move back in (Regardless of how much you are enjoying the hotel!)

Deductibles:  This is the amount you pay out of pocket when you file a claim for a covered loss. There are 2 main types of deductibles;

            Wind/Hail Deductible: This covers your home in the case of high winds or hails, usually seen during severe storms. 

            All Other Perils Deductible: This covers your home for the remaining perils listed in your policy, such as fire or theft. Keep in mind, home insurance policies do not cover floods. You will have to buy a separate policy for flood insurance.

Coverage that protects the other party:

Personal Liability: This covers you if someone is injured on your property due to your negligence.  It can help pay for their injuries and any legal costs. We had a neighbors dog bite a visiting child once. The child is fine, but there were some medical costs and their Liability on their Home Insurance policy paid it in full.

Medical Payments: This will provide reasonable and necessary medical expenses to a guest on your property injured in an accident. If the UPS guy trips and falls and needs medical attention, this would cover minor needs, like ER and stitches.

Insurance coverage can be confusing, but it doesn't have to be!


Have other questions? Need a quote?

    * Call us  877-987-8683  

    * Visit brockmanpremierins.com