Secondary Home Risk Management Checklist

Chip Gibson Personal Insurance, Risk Management Leave a Comment


Items to Consider

      • Where is the home?

– Near water? (Elevation Certificate)

– Higher Hazard Area: Wildfire or Hurricane?

– Is it near Fire Department infrastructure? (protection class)

– Construction (not a homeowner’s product)
Does it need work?
Hiring GC or not?

– To be purchased by – LLC, Trust, Personal name?

Congratulations! You Bought a Home – What’s Next?

  • Set up a team to care for the home (All should give COI with AI)

– Care Taker / Property Manager

– Landscaper

– Emergency Contacts

– Plumber, Electrician, Etc.

  • Prepare for a natural disaster

– Boards for windows and doors

– Hurricane / Wildfire Protection from Insurance Company

– Tree Removal

  • Purchase Insurance: Evaluate Economics of Scale with Insurance Policies

– High net Worth vs. Standard Market

– Increase your Umbrella Liability Limits.

High Net Worth (HNW) Versus Standard Market (SM)

  • HNW offers Guaranteed Replacement Costs.
  • HNW has dedicated Claims infrastructure with teams offering white glove service, SM will hire a 3rd party. They are good but will not be as seamless.
  • In the event of a total loss HNW offers a Cash out option – you could take the money. SM makes you rebuild (Jewelry is the same).
  • HNW will cover water / sewer and backup at the full amount of the claim – SM generally is limited at $7,500.
  • Loss of use – supplemental payments for charges incurred if you were displaces from you were displaced from your home: HNW will cover this for reasonable expenses and SM has a cap to this coverage (20% of dwelling coverage).
  • Versus Surplus Market there is a greater discrepancy.

Recommended Steps to Lower Risk

  • Top 5:

– Central Station Burglar.

– Central Station Fire.

– Low Temp Monitor.

– Water Flo System – Closes and shuts off the master plumbing valve with Alarm.

– Personal Property Inventory (video or spreadsheet).

  • Utilize your Insurance Company:

– Property Manger after storm.

– Wildfire protection – spray fire retardant on home.

– Inspection – Complete the recommendations.

Risk Management Steps

  • Guard / Gated Community
  • External Perimeter Security – 24-hour monitor through TV cameras / detection system or 24 hour security guard.
  • 24-hour signal continuity – communicates with Central Station in the event communication is interrupted.
  • Full-Time Caretaker – for Primary Residence – Caretaker living at residence year-round.
  • Part-Time Caretaker – for Secondary Residence.
  • Lightning Protection
  • Perimeter Protection Gate – House is protected by gate that is controlled by lock or electronic gate.
  • Seismic Shut-Off Valve – Automatic shut off valve to gas lines in the event of an earthquake.
  • Shutters – Shutter or Impact glass on all exterior openings.
  • Back-Up Generator
  • Gas Leak Detector
  • Residential Sprinkler
  • Sprinkler Water Flow Alarm.

Selling the Home!

    • Transfer within the Family

– Make sure Named Insureds are correct (Trusts, LLC, etc.)

– Flood Insurance (grandfathering policy).

  • Other Notes

– Airbnb is excluded from most insurance policies.

– Renting is not recommended.

Providing Peace of Mind Through Proactive Service

Deland, Gibson: a Trusted Choice, Five Star Accredited independent insurance agency. Established in Massachusetts in 1900, Deland, Gibson is a 4th generation family-run insurance agency that has thrived working as a trusted advisor for its client base. We work with individuals and businesses to lower their Total Cost of Risk. We analyze a client’s direct and indirect costs and implement risk reduction plans to address areas of business, hazard, or strategic risk.

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