Keep posted, keep informed.
3.1 percent of homes are only used seasonally in the United States, according to U.S. Census Bureau. While that number might seem small, it’s still a fair amount of homes that exist in the states. Vacation and secondary homes have certain risks that are not found in ordinary homes (even high-net worth ones), as illustrated by the Insurance Information Institute (III), and all of those homes need to have some type of insurance to keep them covered. When insuring vacation or secondary homes, particularly high-net worth homes, keep these features in mind, as they are some of the top contributors to their risk profile.
Location is a Big Factor
Location is a huge determinant in home insurance costs and coverage. For example, if a home is in an area prone to natural disasters like earthquakes, it might cost a little bit more in order to insure the home. Other examples of natural disasters that could affect high net worth homeowners insurance are fire zones, tornadoes and floods. Hurricanes can also be an issue. Sometimes a more desirable place might cost more money in the long run. If the home is in a remote area, it will have slightly different issues to work with than someone who owns a beach house. Homes in places like California might seem like a good idea, but they can inevitably be costly.
Because people typically want to go to an exotic or exciting location for their vacations, this unfortunately means that their vacation or secondary homes will have weather concerns to work with. Whether it’s the risk of snowstorm or avalanche from a cabin in the mountains or the risk of tsunamis, tropical storms, or flooding with beach houses, vacation homes are likely to come with added risks.
Property Type Matters
Things that also matter in the cost of a home and its insurance are age, size and type, as well as the building materials. Other issues that matter are whether the property is a home, townhome or a condominium. Depending on the area, a condo can sometimes cost more or less than a single-occupancy home. A condo in a high end area might be more coveted than a home.
Amenities Can Add to Costs
Having a little extra can also add to costs and risks. Fun features like pools and hot tubs will add risks to a second home that will ultimately need to be covered. These special amenities add to the home insurance premium, which also adds to the deductible for the house. Things to consider are additional liability coverage, but this can raise premium costs as well.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.