3 Home Insurance Policies for Second Home Owners

For owners of multiple homes finding quality home insurance can often be a daunting task. Not all policies offer a full well-rounded coverage plan for second or third homes as they do for the first home. Also, most home owners are unaware that insurance discounts exists for home ownership consisting of two or more homes. This article examines 3 home insurance policies for second home owners.

Home Insurance Policies Second Homes

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1. Umbrella Policy

When buyers purchase their first home they don’t usually consider the purchase, at least at that time, of a second home. After the first home is bought a policy known as an umbrella liability policy is offered to the new home buyer should he or she eventually decide to invest in a second home.

Usually, after the homeowner purchases the first home, available assets are accrued to allow the homeowner to make a second home purchase possible. An umbrella policy simply extends liability limits ─ generally in the range of $300,000 to $400,000 on the first home; this often includes other properties such as motorcycles, boats, or cars.

The added cost of extended coverage is somewhere from $300 to $400. This coverage is especially attractive to landlords who own multiple properties. This leads us to our next type of home insurance policy.

2. Landlord Insurance Policy

The next most popular home insurance coverage is for landlords or individual homeowners who rent the second home usually as a vacation home.

An expected cost for the second home in insurance coverage hovers somewhere around the 20 percent mark. Insurers explain markups and trepidation for this type of coverage this way: Since the owner of the first purchased home is rarely living at the second home the risk of a mishap or accident is placed at a slightly higher risk level.

The insurer’s view is that no one takes better care of a home than its primary owner. Many insurers will even go so far as to charge less in home insurance coverage if it appears that someone is occupying the home for an extended period of time. Research has shown that a home with someone living in it is far less likely to be burned down or burglarized.

3. Condo Insurance Policy

Coverage for a condo demands a different approach to purchasing home insurance than coverage for conventional homes.

If you’re purchasing a condo instead of a typical home there’s a good chance the condo association will pick up the tab for home insurance for the dwelling. This coverage will fall under the condo association maintenance fee.

You as a new condo owner, however, will be responsible to provide coverage for appliances, various home improvements, any fixtures for the home ─ including designer kitchens and baths; you are also responsible to provide insurance for what you own in the home as well as liability coverage.

Quality coverage requires a thoughtful approach. These are three of the most popular and best home insurance coverage policies for those who own multiple homes.

Thinking of investing in a second home? Visit ComFree.com today.

Author Bio:

Lori Robinson is the senior writer & publicist for a leading car and home insurance comparison site Monkey.co.uk. The site donates £10 to a charity of your choice for every home insurance quote taken out through Monkey.

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