Imagine Your Needs
When buying home insurance, the agent will inquire about your goal of that home. Do you plan to live there? Do you plan to rent it out? Is this a second home? Do you plan to live there only infrequently? All of these questions are important.
For example, if you plan to use it as a second home, perhaps just for the weekends, the home may remain empty for some time. During that time, it is at a higher risk for damage. And, if there is damage to the home, you may not learn about it right away. Vacant homes – even if it is just for a portion of the week – are a bigger risk factor and might merit specialized coverage.
If you rent out the property either to a person who will live there every day or to a person just for the weekend, that can also play a role. As noted, you are most likely to take the best care of your home. If you plan to rent it, there are several things your insurance company needs to know:
- Tell them that you plan to rent it. This changes your needs. You now need a home insurance policy for rental properties.
- Let the agent work with you to increase your liability risk coverage. With someone living there, your chance of having to file a claim for liability insurance is often higher.
- Work with your agent to ensure all requirements are in line for rental properties. The law may have very specific requirements for you in terms of what you need to insure.