Many people have a second home or vacation home they rent to short-term tenants to make some extra money. While this is a useful means of extra income, it does come with certain considerations. Depending on how much income you make from it, you have to pay taxes, and you need the right insurance to protect you and your renters. Understandably, people have questions about what insurance they need. Does NH liability insurance cover what you need, or is there a different type of policy?
Let us answer your questions about NH liability insurance and vacation homes.
Are vacation home insurance and homeowners insurance different?
In short, yes. Insurance companies view vacation homes as a higher risk. Because they are vacant for more time than your primary residence, vacation homes are more likely to suffer damage. For example, if you have a leak in your primary residence, you will notice it fairly quickly and repair it before it can cause any real damage. However, if you have a leak in your vacation home, it is more likely to lead to water damage because there is no one there to notice it. Vacation homes are also more likely to be burgled because they sit empty for long stretches.
Does vacation home insurance cover me if I rent it out?
Typically, no. Most likely, you will need extra coverage for short-term (less than 30 days) rentals. NH liability insurance is often included as a part of that policy to cover you if a renter is injured in your home. You should read your policy carefully and consult with your insurance agent so you know exactly what your policy covers. If you do long-term (more than 30 days) rentals, you will probably need a landlord or business-related policy.
NH Liability Insurance from the Morin Agency
When it comes to comprehensive coverage from an agent you can trust, NH homeowners turn to the Morin Agency. Our agents are committed to giving you personalized coverage that meets your needs and your budget. We take the time to work with each of our customers to ensure that they are satisfied with their policies so that they can have peace of mind.