Homeowners Insurance Policy for the Cabin - Part

Editor’s note: This is the second in a series of insurance FAQs. There is no doubt that cabins hold emotional value for owners, but they also hold great financial value, a value that needs to be properly protected. Because of the special nature of vacation homes, when it comes time to sit down with your homeowners insurance agent, you may want to ask a few questions about any unique considerations for insuring your cabin.

Q: Am I covered when I rent my cabin to others?

A: If you let your insurer know that you are renting out your cabin, you will have coverage for common perils such as fire, theft, etc. However, you may also purchase separate insurance against more serious damage such as vandalism, malicious tenants and rent loss due to an early summer fire or some other misfortune that would cause a loss of rental income.

Q: Am I covered for water issues caused by sewer/drain back up, sump pump failure, etc …?

A: Though some companies include sewer back up as part of a policy, many do not, so it’s important to check with your insurance agent. There is no coverage for sump pump failure, which is why you should also consider purchasing flood insurance, available through the federal government’s National Flood Insurance Program and some insurers.

^{SOURCE: Loretta L. Worters, Vice President of Communication for the Insurance Information Institute, www.iii.org.}