Insurance coverages on resort properties can be confusing. The insurance coverages available are different from those included in the homeowners policy most people have on their primary residences. We've included the following summary of the different types of insurance coverage available for your resort property.
Often referred to as hazard insurance by attorneys and real estate agents, a dwelling fire insurance policy provides protection for damage to your house and contents that result from fire, lightning, smoke, windstorm, vandalism and other named perils listed in the policy.
Liability coverage protects you when someone is injured on your property. You may be able to add this coverage to your homeowners policy or purchase a separate liability policy.
Coverage for theft is not covered in the dwelling fire insurance policy. You can purchase up to $10,000 of coverage for theft. It is inexpensive but there are protective device requirements. In order for a claim to be covered there must be signs of forceable entry.
A homeowners policy may be available in lieu of a dwelling fire policy for homes that are used as a secondary residence or homes that are in rental programs and rented up to 36 weeks per year. The homeowners policy offers broader coverage than a dwelling fire including replacement cost protection on the home and possibly replacement cost for personal property. This policy includes the theft and liability coverage that would need to be purchased separately with the dwelling fire policy. In the event of a total loss, the homeowners policy may provide an additional 25% fo coverage in the house over the limit allowed by the policy.
The homeowners policy for secondary or rental homes does exclude coverage for claims that result from wind or hail damage. A separate policy will have to be written in conjunction with this policy to provide that coverage.
Floods can occur anytime and anywhere and Eastern North Carolina is vulnerable for many reasons. Losses from flooding are not covered by a dwelling fire or homeowners policy. You can, however, purchase a flood insurance policy to protect you from losses to your house and contents caused by flood.
The maximum amount of flood insurance available on a single family dwelling is $250,000. Flood insurance premiums are based on the amount of building and contents coverage, the flood zone where the property is located and the elevation as shown on an elevation certificate for properties located in a AE, AO, or VE flood zone. A preferred risk policy (PRP) may be available for those properties located in flood zones B, C and X at reduced premiums.
Contact us today for more information about Resort Property Insurance.