A residential cabin can also be considered a vacation property. If you are planning to take out an insurance policy for your log home, there are some basics to know and understand. A log cabin is a vacation property basically because you are not residing there on a full-time basis. Therefore, there is different insurance coverage that is offered for this type of property. Take note that the insurance coverage necessary for a residential cabin mainly depends on how you use the property.
Residential log cabins are often used as temporary accommodation, and for some owners the property is for a summer or winter retreat. However, there are also cases when regular weekend visits are made or the residential cabin is occupied year round. In this case, a more comprehensive insurance coverage is highly recommended. You must also consider a more complete coverage if you use the log home for rental purposes.
Most Important Points about Insuring a Residential Cabin
Take a look at some of the most salient points that log cabin owners must understand before taking out an insurance policy for the property:
- Inclusion in your primary home insurance. Taking out a separate insurance policy for the residential cabin is permitted, however you may also opt to have the cottage included in your primary home insurance coverage, where the vacation property will be listed as a seasonal or secondary location. Either a stand-alone or secondary insurance could protect your property from losses and the like.
- The Named Perils Coverage. This particular feature for a vacation residential cabin insurance policy is quite different from a comprehensive coverage that covers All Risks - a comprehensive policy is normally for primary homes. A residential cabin on the other hand is covered under the Named Perils category - this coverage is exclusively for specific risks such as fire. In terms of other risks such as water damage and vandalism, the coverage could be expensive as the property is only occupied part of the time.
- Primary and Vacation Property Insurance Packaged Deal. In most cases, an insurer would insist that both the primary and vacation residential cabin be insured with them. In fact, many insurance providers require the homeowner to insure the primary residence first before they provide the insurance policy for the secondary or vacation property.
What items are excluded in vacation property insurance?
Getting your residential cabin insured is not always a piece of cake if you really want high quality coverage. There are also certain things that could not be included in the coverage due to the fact that the log home is not regularly occupied. Here are some of the log cabin insurance exclusions:
- Fences and equipment for gardening
- Sewer back-up coverage
- Food and other perishable items stored in a freezer
- Shrubs, trees, and other outdoor plants
Types of Residential Cabin Insurance Coverage
Insurance policies and coverage are not created equal. It is imperative to know each and every policy in order to identify the best for your residential cabin. Check out the most common insurance coverage for log homeowners:
Third party or Personal Liability
This is the type of coverage you need if the physical structure is not really valued much. The personal or third party liability insurance coverage protects owners in the event when someone on the property is injured. It also covers the owner in the case of fire at your residential cabin, which eventually could spread to other surrounding cabins and properties.
This protects belongings that are stored and kept inside the vacation residential cabin. It only applies to items that are kept for storage and not the items that are brought back and forth from the property. A home insurance policy usually covers assets or things that you carry between your primary residence and the vacation residential cabin. In most cases, secondary or seasonal home coverage deals are already inclusive of contents coverage. This is an automatic feature, however it may have specific limits. There is always an option to buy additional coverage if you find the limit insufficient.
About Detached Private Structures
Detached private structures refer to outbuildings, garages, docks, or boathouses. Some insurance packages for temporary residential cabin may include this particular coverage. However, there are also limited coverage especially for outbuildings. It is imperative that you talk to your insurance provider in order to know what is and is not included in the coverage. You can always buy additional coverage if you want more adequate protection for your residential cabin features. In most cases, damages due to water and ice build-up are not included in the coverage.
About Insurance Policy Requirements
Getting your residential cabin insured is tricky, especially with some insurance providers. There are unfortunate cases when the policy could be declared void. It is important to have a clear understanding of your policy requirements and comply with them in order to avoid such dilemmas. For instance, a residential cabin policy requirement may stipulate that the property owner should make regular visits to the log home throughout the year to keep their policy valid. You can keep verifiable records and photos that could help you with your claims in the future. An insurance advisor could certainly make things easier for you to handle and understand matters.
About Insurance Policies and Rentals
Talk to your insurance provider before you make any decisions to rent your residential cabin out, even for just a specific or short period of time - such as in the case of vacation rentals. This is also for your own protection in case renting out the place is not allowed under the terms and conditions of the policy. Make sure the residential cabin is likewise covered during the rental period.
Insurance policies are designed to give you peace of mind any time of the day or night. Your vacation or secondary residential cabin is as important an investment as your primary residence. Make sure it is covered and protected with the right insurance policy.