High alert: insurers are covering high-end vacation homes by stepping up their risk management techniques.(Property/Casualty: Homeowners)

Best's Review, November, 2007 by Green, Meg

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Insurance companies are wooing vacation-home owners as part of an attempt to corner this high-end niche market.

Vacation homes can be a challenge to underwrite, because they often are located in high-risk areas and prone to perils such as hurricanes and wildfires, and many are left unoccupied for long periods of time. However, insurers are offering special risk-management services to help homeowners deal with those additional risks. Their goal is to write the vacation home as part of the homeowner's larger insurance portfolio, including homeowners insurance on primary residencies in addition to auto and umbrella liability coverage.

Exposed Risks

Vacation homes are a growing market. About 14% of all homes...

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