If you are planning to buy a second home in New Jersey, work with your agent at E.S.T.I.R. Inc. serving Bloomfield, NJ and the surrounding communities. Make sure you get adequate insurance coverage. Your agent will conduct an insurance review of your existing home insurance policy and then make a professional recommendation about how to insure the second home.
There may be an option to use the same insurance company, which you already have, to extend the coverage to the second home or you may want to consider getting a new policy. Your agent will explain the details.
Things to Consider About Insuring a Second Home
A second home has different insurance needs than your primary residence.
Here is a list of important questions to consider and discuss with your agent:
- Will the home be vacant part of the time?
- Will you rent the home out to others?
- Should you get replacement cost coverage?
- Do you need extra coverage for personal property?
- What is the risk of damage by water from flooding or storm surge?
Leaving the Home Vacant
A vacant home is more attractive to burglars who can break in when nobody is there. Security systems can be installed to help mitigate this risk. This may help with insurance coverage.
Renting the Home
Renting the home to others can provide income to help offset expenses. This is a commercial enterprise. You will want to have commercial insurance to cover the paying guests and the use of the home as a rental property.
Replacement Cost Coverage
Replacement cost coverage is very helpful because if the home is damaged, repairs can be made that will bring the home back to a similar condition before it was damaged.
Be sure there is adequate coverage for any valuable contents of the home as well.
Home insurance does not usually cover flooding, so be sure to talk about adding flood insurance.
Ask your agent about any other concerns that you have about insuring a second home. To get an insurance review and a quote, call us to speak with your agent at E.S.T.I.R. Inc. in Bloomfield, NJ.