How the home insurance for secondary home different from primary home insurance?
Posted on January 04th, 2009 in Home Insurance
Cosmos asked:
I am renting my home for 4 months and that’s why I need to convert my Primary home owner’s insurance policy to Land lord policy. But after 4 months I can’t change the insurance of my home to Primary home owner policy. But I will have to get the Home owner’s insurance for the secondary home which is more expensive then the primary home. I do not live in this house. So is it okay to go for a landlord policy for 4 months and then to secondary home - insurance policy? Is there a risk of very high premium on Secondary policy, could I change the policy back to primary home owner’s policy? What are the drawback of a secondary home insurance vs primary home insurance policy. Please help. Thanks.
I am renting my home for 4 months and that’s why I need to convert my Primary home owner’s insurance policy to Land lord policy. But after 4 months I can’t change the insurance of my home to Primary home owner policy. But I will have to get the Home owner’s insurance for the secondary home which is more expensive then the primary home. I do not live in this house. So is it okay to go for a landlord policy for 4 months and then to secondary home - insurance policy? Is there a risk of very high premium on Secondary policy, could I change the policy back to primary home owner’s policy? What are the drawback of a secondary home insurance vs primary home insurance policy. Please help. Thanks.
This post has 3 comments
January 5th, 2009
A risk of high premium?? Are you kidding? How about a risk of your property burning to the ground and being denied coverage because you were trying to save a few premium dollars by not disclosing the use of the house to the insurance company (I think they call that insurance fraud). One of my properties had a major fire (read about it on my blog) if you don’t think it can happen you’d be wrong.
Make double sure to match the property coverage policy to the use of the property. If you’re living there it’s a HO policy, not living there full time a second-home or ‘vacation’ property policy, renting it a landlord policy, have it open for whatever reason, a vacancy policy. Don’t be premium rich and coverage stupid.
The differences between a primary home and secondary (vacation house) policy vary a little by company. Some companies sell a policy where primary liability and personal property is carried on the HO policy, others keep everything seperate. Get a sample policy from your insurance person.
January 8th, 2009
If you’re not living in the second house, then you should be able to get a dwelling policy. Especially if your goal is to rent it out. Your HO3, if it’s a single family detached structure, should be the one for the house you will live in, as it includes personal property coverage.
Are you talking with your homeowner’s insurance agent at all?
January 11th, 2009
Why not just go to an online site that will give you bids from multiple agencies. It’s quick and you’re not at any risk, and it will give you a ballpark figure to work with and decide what is right for you.
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