What You Should Know about Homeowners Insurance and a Vacation Home

Purchasing a vacation home is a lot like purchasing your primary residence, but there are some things you should know about insurance coverage. If you have a second home or vacation home in Sandpoint, ID, you should still have insurance. First, check with your primary homeowner’s policy to see if your policy could cover the second home or certain aspects of it.

Your second home insurance policy will depend on how you are using your home. If you are going to be renting out your vacation home, you will need to make sure you have more comprehensive insurance policy coverage and maybe a policy that covers the loss of rental income if the home is destroyed. This way, you can make up some of the rental income you could be missing out on. If renting out your vacation home, you may also want additional liability insurance or an umbrella policy to provide you coverage if someone is injured on your property. Make sure your insurance agent knows about how often you are renting out your home, so you can have the best policy to protect your investment.

Remember that just like with a traditional homeowners insurance policy, there are some things that aren’t covered, like floods or earthquakes. If you want our vacation home to be covered from these perils, you will need separate policies. Second homes may be riskier to ensure since much of the time they are left vacant. You may find that it’s more expensive to insure than your primary residence. Ask your agent at The Insurance Shop USA to see if there are any discounts available, such as for having a security system installed.

Contact an agent at The Insurance Shop USA serving Sandpoint, ID to get a homeowners policy for your vacation home.

Why Auto Insurance is Mandatory

The purpose of mandatory car insurance is to provide proof that a driver will be able to pay for liabilities in the event of a car crash in Sandpoint, ID. While there is no federal mandate that requires all drivers across the country to buy auto insurance, every state has different laws regarding the issue of auto insurance policies.

When did auto insurance become mandatory?

The debate on making auto insurance compulsory in the United States goes back several decades. Proponents of making auto insurance compulsory argued very reason that it is possible for a car owner to be unable to pay for damages to other people’s property in the event of an accident. It became apparent that some car owners or drivers with permission from the vehicle owners can cause a car crash, yet be unable to pay for damages and other expenses even when it has been determined that they were at-fault at the time of the crash. Massachusetts and Connecticut were the first states to enact compulsory car insurance laws in the 1920’s. The purpose of creating these laws was to help at-fault drivers resolve claims if they default on their accident payouts. Today, nearly every state has enacted mandatory auto insurance laws.

What is considered mandatory?

It might sound weird why health insurance, which is always attracting heated debate in Washington, is not mandatory yet auto insurance is mandatory. Your health insurance is all about you and your loved ones. Typically, the collision coverage option is not compulsory when the vehicle is paid off because it is protection for you. On the other hand, liability insurance from The Insurance Shop USA is almost always compulsory because it protects other road users or other people’s property. Essentially, if at-fault drivers won’t be held liable or be able to compensate others for the losses they are responsible for, the economy would suffer.

Protect yourself financially by investing in sufficient auto insurance from The Insurance Shop USA and you won’t have to worry about losing your assets or savings in case of a car accident. Our friendly agents will guide in choosing the right auto insurance coverages suitable for your budget and lifestyle.