Homeowners Insurance in Michigan is Essential for Second Home Buyers
Buying a second home can be a means to benefit from an additional source of income or a way for families to enjoy a quick weekend getaway from the hustle and bustle of life in the city. Some even buy a second home in preparation for retirement. However, purchasing any form of real property is not to be made lightly because of complexities involved in the cost of acquisition. In an article for Forbes, Kate Ashford discussed the cost factor in detail when it comes to buying a second home:
1. How much will a second home cost?
We’re not just talking about the sale price here—there are a lot of associated expenses you need to factor into the equation too. So while that vacation house you’ve been eyeing may be small, it still requires budgeting for a mortgage, property taxes, insurance, utilities and maintenance fees—and some of those expenses are probably higher than you think.
And don’t forget to factor insurance into the equation. In general, insuring a vacation home will cost about 20% more than a primary residence, says Craig Venezia, author of “Buying a Second Home: Income, Getaway or Retirement.”
Insurance providers view vacation homes as a higher risk because you won’t be living there full-time. “In their eyes, there’s a greater chance the house can be damaged,” Venezia says.
As the article suggested, second homes are more susceptible to vandalism, fire and small issues becoming large claims as the stay of the owners of such properties is often short and not definite. Thus, those contemplating buying second homes should consult with reliable insurance agencies such as Allied Insurance Managers, Inc. about getting comprehensive Michigan home insurance for their properties. By consulting with professionals, home buyers and owners can get useful information which they can use to protect their estates from various dangers.
Property owners and buyers should consider homeowners insurance in Michigan as an essential cost when evaluating 2nd home options. Homeowners and buyers should always keep in mind that owning a property comes with the risk of sustaining damage through natural and man-made circumstances. While buying second homes can bring benefits, it is also a sensible step to have these properties covered by the appropriate insurance policies.
(Source: In The Market For A Second Home? 8 Ways To Prep For The Purchase, Forbes, July 7, 2014)