Buying a vacation home is a dream for many. Spending some quality time away from crowd with your near and dear ones is the most pleasant thing in the life. But often it is much more expensive than buying a primary residential property and you must know everything before you invest in a vacation home.
Are you buying a vacation home? Here are the things that you need to know.
Insurance costs: The insurance cost of the vacation house is higher for two reasons
- 1) Vacation houses are far away from emergency services.
- 2) Most of the time vacation houses remain empty.
In addition you need to buy flood insurance separately if your vacation home is located in flood prone area.
Personal property coverage: The personal property in your vacation home is not always covered by the primary home owners insurance. You must purchase dwelling fire policy that covers both the dwelling and your personal property.
Liability coverage: Primary homeowners insurance does not cover liability coverage. So you need to buy umbrella policies that are not particularly expensive and can protect your lawsuit.
Do you own a vacation home?