Buying a Second Home Investment Property
Thinking about buying a second home? You may have done your research and found it would be a great investment, but you also might have second thoughts on this second home sweet home. Before you get too far down the yellow brick road of investing in a second property, here are some ways you can be prepared to make sure you get to Oz, house intact and tornadoes aside. (Even if you have never heard the story of how Dorothy’s house got swept up in a tornado, you can still clue in here to get the best tips on how to be a responsible second home owner and learn how to make it work for you.) Insuring your second home would ensure a solid profit and we will show you how (and more ways to make the most of your investment) here.
How to save more with an alarm system
An alarm system is crucial in any home and this is surprisingly often forgotten about or swept aside in the hustle and bustle of making preparations for a second home. The benefits start increasing once you get an alarm system installed. With burglary and smoke alarms installed, you can knock 20% off the insurance cost. Even more alarming is the fact that burglars target second homes and areas with a high percentage rate of vacation homes since the alarm systems tend to be non existent and the homes are so often left empty for long periods of time. You can even alert the neighbors with this alarm now that you know how to use your alarm system to work for you, maximizing your profit on your second home.
Caretakers for your Second Home
Do you remember the munchkins in the Wizard of Oz? How cheery and helpful they were? Aside from putting on their own musical numbers worthy of Dancing with the Stars and American Idol, they were invested in the plight of Dorothy and her friends, but there was only so much they were able to help with. They needed Glenda, the “good witch” to help them. You need a good caretaker to help ensure your home and second property is well cared for. So that your investment does not fly away like Dorothy’s house did. Find someone trustworthy who can check on the house every so often to make sure everything is in order. This will qualify you for an insurance discount. They need not be full time and this is a simple way to help not only with your insurance costs, but also with the upkeep and maintenance of your second home. This is how disasters can be avoided in the long term. No one wants a house to fall on their head. With a caretaker for your second home, no one needs to worry about their valuable ruby slippers getting lost.
Homeowners Insurance: The Nitty-gritty Details of the Policy and How to Save More
Using the same provider for your first and second home will allow more money to be saved. This will open up the door to savings as much as 10% off of the cost of the policy for the second home investment property. Do you own additional homes, or vehicles or a boat? Add those to the platter too and maximize savings with a package policy that gives you even more discounts.
Thinking of renting out your second home, now that it’s all set and ready to go? Before you continue on that brick road, think twice of what you are asking the Great Wizard for. This can increase the cost of the insurance policy by a whopping 20% compared to a policy where the home won’t be rented out. It is best to factor this into your plan and budget before you hand over that lease to the Lollipop Gang, which will increase the insurance rates with tenants in your second home.
Taking Inventory in your Second Home
Making a list and checking it… twice? Many homeowners keep track of what they own in their first home sweet home. It is crucial to keep the same count of what you own in your second home, in case of emergencies [Insert flying monkeys and tornadoes here]. This will allow you to maximize savings on your second home investment property, as well as to prevent loss from additional or unexpected costs that arise, as they will be covered by insurance.
Location, Location, Location: Insurance Requirements for your Second Home
When purchasing a second home, the location may be far or near from your first home. It is good to check the requirements either way, as they may be very different from those of your primary home. To find out what kind of coverage is required in the area of your second home investment property, ask your insurance agent for the details.
Certain coverage may be required that extends beyond homeowners’ insurance. Flood insurance may be required in one area while protection against wind, tornadoes, hurricanes (and flying monkeys) may be required in another.
Though Dorothy may have said “There’s no place like home” while clicking her ruby slippers together, our bets are placed on her second home investment property, insurance-protected against tornadoes and melting witches alike.
