Recognize the three L’s of owning a vacation home

June 4th, 2014 by admin

Now that it's summer, you may be getting ready to head to your vacation home by the lake, mountains or ocean. Although owning a summer property is certainly a wonderful luxury, you also need to think about certain insurance liabilities. If you're a vacation home owner, or plan to be one in the future, it's important to recognize the three "L's."

  • Larceny: Chances are that your vacation property isn't your primary residence, and you may not even live in it throughout the entire summer. If this is the case, your property may be more susceptible to burglaries, as thieves typically target homes that look like they're unoccupied. In addition to installing an alarm system that notifies you or the police if someone tries to break in, you may also want to ask a friendly neighbor to report anything that may look suspicious.
  • Leasing: "If one careless tenant leaves the stove on, damages your belongings or is injured while on your property, you could face the entire cost of cleanup, hospital bills and even lawsuit expenses," writes Kelly McMurtrie of AOL Real-estate. "It's a good idea to cover all your bases with background checks and lease agreements. You also should consider investing in an umbrella policy to help protect yourself against the extra liabilities."
  • Location: Everyone wants to own that gorgeous waterfront property, but not everyone knows about the liabilities of having a beach home directly on the water. In addition to being at risk for damage by hurricanes and strong winds, these locations often experience flooding. Be sure that your home is equipped with storm windows and other safety features.