California Insurance Guru

There are different types of home insurance.

•  Homeowners insurance

Homeowners insurance is for your primary home.  This is the home you go to and live in on a daily basis.

• Second home insurance.

This is your secondary home, your vacation home which is not the one you live in on a regular basis.

• Rental home insurance.

This is your investment home that you do not live in, but you own.  This is a home that you rent out to permanent renters.

• Seasonal, daily or weekly rental insurance.

This is also an investment home that is commonly in a resort area where you rent out seasonally, daily or weekly to vacationers.

You must distinguish between these types of home insurance when getting a quote on a home you own as the insurance policy and coverage is different for each of them.

Some companies do not like to insure homes that are seasonal because they are a higher risk.  If you say it’s a rental you need to further explain if this is a permanent rental or seasonal.

You need to make sure that your homes are properly insured and that you do not misrepresent what it’s use is.

Keep in mind, if you misrepresent the occupancy of your home and have a loss you risk the home being covered for a loss and you may not have the coverage needed for that home, an example would be Loss of Rents.  Without Loss of Rents coverage you would not be able to collect loss rent income from your property while the home is being fixed due to a covered loss.

If you have any questions contact your agent or this author.