Do you have a vacant home, one that no one lives in, that you need to protect? Perhaps you have a seasonal home, one you visit a few times a year for a vacation. Some people travel extensively, leaving their existing, primary residence empty. How are you insuring these structures?

Chances are good you may not be protecting them in the right manner if you do not have the proper type of specialized insurance.

What Coverage Does Your Standard Home Insurance Policy Offer for These Homes?

Take a closer look at these three types of homes and what type (if any) your traditional home insurance policy offers for them. In every case, you need to inform your existing agent about any instance in which you will not be in the home. And, you need to take into consideration how to better protect these properties.

Vacant Homes

A traditional home insurance policy is not likely to provide coverage for a vacant home if the home is empty for longer than 60 days. Some newer forms of home insurance will exclude any loss from the home – such as vandalism or broken glass – if it occurs when the home is empty. For example, some breaks into the home and sets it on fire. You have no coverage.

If your coverage is in place on a vacant home for 30 days or so, it is unlikely to continue long because of the increased risk vacancy brings to it. For this reason, you will need a specialized policy if the home will remain vacant longer than your coverage will provide.

Unoccupied Homes

Most insurance companies have limitations on how much or how long it will cover an unoccupied home. This is a home with the utilities on and furniture in it, but one where you have not lived there for 30 to 60 days. Some only permit 30 days of vacancy. Beyond this, you may have no coverage for losses. For example, if you are in an accident and hospitalized for 30 days, and someone breaks into the home, steals your valuables, and you suffer losses, your coverage may be limited.

In this situation, be sure your agent knows the home is unoccupied. If possible, have someone move in to protect your home. Agencies are not likely to cover claims if they learn the home is unoccupied and you have not informed them.

Seasonal Homes

In some situations, your existing home insurance policy can extend to your seasonal home. This can help you avoid having to buy a new policy for your home. However, be explicit about how frequently you use the home when you use it, and how.

If the policy only covers your use of the home – rather than renters who use it when you do not – be sure to maintain it as such. Investment property requires a different form of insurance. Let’s say your policy covers only your use of the home, but you rent it out. The renters cause damage to the property. You may have no coverage.

Confused By Your Options?

Covering a property like this is possible but complex. Your goal should be to ensure you have comprehensive protection for your home no matter if you live in it or if you are planning to sell it. Work with an insurance agent that’s licensed and fully understands your options. At GOEBEL Insurance, our agents work closely with property owners who travel significantly or own more than one home. As a result, we can help you customize a policy to meet your individual needs.

Last year, Airbnb doubled its number of guests across Wisconsin. That number doesn’t include growth in VRBO and other services. But before you join the bandwagon, you need to understand the risks you face. Continue reading to learn more about how to protect yourself.

What Could Go Wrong If You Rent out Your Home

Whether you’re renting out your primary residence, a vacation home, or just a room, there’s a lot that can go wrong during the rental. You face the usual hazards, such as storm damage and fires, only visitors likely won’t be as careful as you would. That means a potentially greater risk of damage from things like a burning candle, an open window during rain, or frozen pipes during the winter.

Also, you face the risk of damage caused by your guests. This could come in the form of theft, intentional or unintentional damage to your home, or damage they cause to your neighbors’ property.

Finally, should one of your guests get injured while staying in your home, there’s a good chance you could end up facing a personal injury lawsuit no matter what caused their injury.

Other Things You Need to Consider

In addition to the liability risks, there are other pitfalls you need to be prepared for.

• Will guests coming in and out of your home become a nuisance to your neighbors, and how will they respond?
• Does your condo or homeowner’s association have any applicable rules that could lead to fines?
• How will you handle messes and damage that are too big for your deposit but too small to be worth an insurance claim?
• What will you do about family heirlooms and possessions with sentimental value that can’t be replaced?

Is Your Existing Insurance Enough?

If you’re sure renting your home is right for you and that you believe insurance can cover your risks, you need to make sure you have the right coverage. Your homeowner’s insurance policy may only cover your own personal use of your home and not rental activities.

That means that there’s a chance that if your home burns down while it’s rented out, you may not have insurance coverage. Of course, your coverage depends on your exact insurance contract, and there are a few questions you should ask.

• Do you have coverage for rental activities?
• Is there a limit on the number of nights per year?
• Do you have to be home, i.e., is there a difference between renting a room and renting your entire home?
• Is there coverage for all of the perils discussed above?
• Is there coverage for legal fees, fines, or related costs if you or your guests run afoul of the law?

Remember that while Airbnb and other providers offer included insurance coverage, there may still be coverage gaps or exclusions. You also run the risk of them claiming that you violated their contract and saying their insurance doesn’t apply.

Learn More

To learn more about the insurance coverage that you need when renting out your home and what’s covered by your existing policies, contact GOEBEL Insurance.