Insuring Your Vacation Home in New Jersey

By Yocasta Garcia

Beach houses

Buying a vacation home is a dream come true for many, and like anything else that matters to you, you want to make sure it is protected. It is just as important to have insurance for a vacation property as it is to have it for your primary residence. And while some aspects of insuring your vacation home are the same as your primary home, there are some distinct elements to consider when choosing your policy.

What Should My Policy Cover?

You’ll want to make sure your policy covers the home itself as well as your belongings inside. You may want to consider flood insurance and an umbrella (Personal Liability policy). If you would like to rent the entire home for an extended period, a Landlord (Dwelling) policy may be needed. Most landlord (Dwelling) policies cover fire or wind damage, but not typical wear and tear or your tenants’ property.

How Much Will It Cost?

The cost to insure your vacation home is determined the same way as your primary home. It depends on replacement cost value, the deductible you choose, and applicable risks. Purchasing an insurance policy for your vacation home may be more expensive because of those risks. Homes that are frequently vacant are more prone to burglaries and pose a greater risk for devastating fires if no one is there to call the fire department. Depending on their location, vacation homes may be more vulnerable to natural disasters or farther away from water sources or emergency support in the event of structural hazards.

How Can I Save Money?

There are some easy and cost-efficient ways to save money on your vacation property insurance:

  • Install fire and security alarm systems and security cameras
  • Install a water sensor and/or water shut off device
  • Increase your deductible.
  • Maintain your property – keep your appliances, plumbing, and electrical in working order. Repair damages to your roof quickly. Add additional lighting to increase safety.
  • Ask your agent about discounts and bundling coverage options.

One cost-saving method to avoid – misleading your insurance company. If you are dishonest and claim your vacation property as your primary residence, your claims may be denied and/or you could be dropped by your provider. And that savings is not worth the risk.

Protecting your vacation home is more than protecting a property – it’s safeguarding the place where you can relax and find respite. At Hanson & Ryan, we understand that. We want every person to rest easy knowing they are protected with a trusted partner who truly supports them in good times and bad. And we would love the opportunity to talk to you more about your vacation home and your unique insurance needs. Please contact us today to get started. Then maybe you’ll invite us for a visit?