In the past two years, Texas real estate sales have skyrocketed! A portion of those sales have been for waterfront vacation homes, second homes, and investment properties. Buying a waterfront home is an exciting achievement – whether it’s a place to relax by the water with family and friends or an additional source of income on an appreciating asset. However, protecting new waterfront homes that are used as second homes or rental properties can be slightly tricky, especially when it comes to getting the correct insurance. So USAWaterviews.com went ahead and highlighted a few types of insurance to consider.
Flood Insurance
Floods can be extremely damaging. One inch of flood waters in a home can cause over $20,000 of damages. Standard homeowners insurance does not cover floods. Whether or not your waterfront home is located in a flood zone, flood insurance should be heavily considered. Flood insurance protects homeowners from overflow of inland or tidal waters, unusual/rapid accumulation of water from any source, and mudflow. However, flood insurance does not normally cover earth movement caused by the flood. For example, a home that was damaged by an earthquake that was due to a recent flood.
There are various ways to obtain flood insurance depending on the location of your property. Some homeowners receive flood insurance from the government while others go through private insurance companies. Either way, homeowners should speak to their insurance agent and fully understand their coverage.
Homeowners Insurance
In certain circumstances, insurance agents are able to extend homeowner’s policies to cover an additional home. However, homeowners that obtain a separate homeowners policy have the ability to tailor that policy to specifically address the risks of waterfront rentals and vacation homes.
Second homes and rentals are at risk for theft, vandalism, water damage, and fire damage since they left vacant for extended periods of time. Homeowners want to make sure that their homeowner’s policy specifically addresses each risk.
Homeowner policies can come with steep price tags. However, installing camera security systems, motion detection lights, alarm systems, deadbolt locks, and smoke detectors can help lower your rate.
Seasonal Home Insurance
Depending on the location of your vacation home or rental home, buyers might want to consider seasonal home insurance. This type of insurance protects a property against storm damage such as hail, rain, snow, wind, tornados, or lightning.
Community Assistance
Depending on your location, certain police stations offer to occasionally check on your home. Especially during ‘off-seasons’, it is important to have someone walk around to home to make sure nothing appears unusual. Property management companies will also provide home checks.
One last thing!
Prior to leaving a home during ‘off-season’ or renting it, a homeowner should create a detailed list of the items inside the home – similar to an inventory list. If an owner needs to submit a claim with the insurance company, they will be able to accurate account for all the items within the home.