Bensman Risk Management, Inc.


Insurable Interests

Bensman Risk Management, Inc.
2333 Waukegan Road Suite 275
Bannockburn, IL 60015
847-572-0800 Phone
847-572-0502 Fax

Insurable Interests may offer general financial, insurance, tax and business ideas. However, due to the ever-changing tax laws as well as the complexity of the financial industry, you should seek professional advice before implementing any of the ideas contained in this newsletter. The Bensman Group, Bensman Associates Ltd., Bensman Risk Management, Inc. or Schemata, L.L.C. assumes no liability whatsoever in connection with the use of this newsletter.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS). Kestra IS and Kestra AS are not affiliated with The Bensman Group, Bensman Associates Ltd., Bensman Risk Management, Inc. or Schemata, L.L.C.

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Insurable Interests

Vol. 8, Issue 10June 2013

MONTHLY MESSAGE

Coverage for Your Second Home

As another story in this newsletter indicates, vacation home purchases are on the increase. If you have or are considering buying a vacation or second home, there are some things you should know about getting insurance.

Basically, you need the same kinds of coverage for a vacation home that you have on your primary residence: property and liability coverage. Usually getting that coverage is as simple as getting any homeowners coverage.

However, sometimes vacation homes pose unique insurance challenges:

  • If your vacation home is in a rural area, how far is it from the nearest fire hydrant? Is the local fire department a volunteer organization? If your home is far from professional fire protection, you could see higher premiums for property coverage.

  • Do you plan to rent your vacation home when you are not using it? If so, you might end up paying more for coverage. The rationale is that renters do not have the same pride of ownership you have, and therefore might not care for your home the same way you would.

  • Will your home sit empty for extended periods? If so, some insurers might require that you have a burglar and fire alarm that connects to a central station for quicker response. If your home is in a cold climate, carriers might require that you have a temperature alarm that provides an alert if the heat fails. Even if your insurer does not require these alarms, you might get a rate break if you install them – not to mention easing your own peace of mind.

  • Are there buildings on your property? If you buy vacant property, planning to build later, or if you buy an existing structure that you plan to tear down and replace, you probably don’t need property insurance. But you still need liability coverage, in case an injury occurs on your property. Generally, it is easy and inexpensive to extend the liability coverage from your primary home to your vacation property.
At The Bensman Group, we use a variety of approaches to find the best coverage for your vacation home. We work with several well-respected national carriers, and we can place the coverage with one of those companies.

We also can work with local insurance companies in the area where your property is located. Sometimes these companies offer better rates because they specialize in covering homes in that area. They also might have fewer coverage restrictions than the larger national carriers.

And we can design a coverage plan that, for example, places your property coverage through a local carrier and extends the liability coverage you have on your primary home through a national carrier.

If you have questions about insurance for your vacation home, or any other insurance question, please contact us at 847-572-0800 or dmiller@bensman.com.

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