Tips To Save Money When Insuring Vacation Property

Insuring vacation property can be an expensive proposition, but smart shoppers often qualify for discounts.

Insurance premiums for second homes are usually higher than premiums for primary residences, in part because second homes are often left unoccupied-making them more susceptible to fire and theft.

Start your hunt for the best coverage at the lowest rate by contacting the company that insures your primary residence: Insurers often provide a 5 percent to 10 percent discount to customers who purchase more than one policy. Then check with at least three or four other independent insurance companies and brokers to see if you can get an even better deal.

Also consider adding an inexpensive alarm system to the vacation property, which can cut as much as 20 percent off your annual premiums if the system is monitored.

If the home is in a rural area, insurers sometimes offer 10 percent to 20 percent discounts if the owner can show that the local fire department has easy access to a nearby lake or stream that can be tapped to fight a fire. Homes in gated communities usually qualify for a 10 percent reduction.

It also might make sense to purchase an "umbrella" liability policy that beefs up the protection provided by the policies on your full time home, cars or even boats. A $ 1 million umbrella policy usually costs about about $300 per year, and the extra coverage could be crucial if you plan to rent the cabin out occasionally and a tenant later gets injured on the property.

Article by David W. Myers.

For more information on Chautauqua Lake Real Estate & Living visit: www.chautauqualakehomes.com