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Remember when you were finally able to afford that second home? Maybe it’s a condo on the beach or a mountain ski chateau. Whatever kind of property you have acquired, it’s certainly nice to have. But have you taken into consideration the added responsibilities involved in owning a second home?
First, insurers look a little differently at your weekend escape versus your primary residence. Insuring a holiday home may be more expensive because it is not being lived in and so may be deemed as a bigger risk. But there are certain things you can do to mitigate that risk.
The best move you can make is installing the latest security features to the home. The better protected the property is, then the lower the risk and the cheaper the premium. Other security features which can lower your home contents insurance include installing smoke detectors; doors and window alarms and locks; and making sure your property is totally enclosed by fencing.
If you rent your property out, do you have a year-round management company, or at least a neighbor who checks on the place? That could make a difference in your premium. But can you simply add your second home onto your primary homeowners policy? Your standard home insurance might exclude certain properties (such as those used as rentals), or simply not offer the right types or amount of coverage.
The smart move is to check with your insurance professional to see what coverages you need so that your American Dream doesn’t turn in to a nightmare.