Five tips for buying a vacation home

(ARA) - Buying a vacation home is the dream of many people as they head toward middle age. As your kids go to college and leave home for lives of their own, you may find that you are able to make the dream of buying a vacation home a reality - especially in a depressed real estate market.

Of course, you need to take the proper steps to make sure that you dream does not turn out to be a nightmare. So here are five important tips to keep in mind when considering the purchase of a second home.

Determine the accessibility to emergency services. Many vacation homes are located in secluded areas, which is very desirable when you are thinking about owning a place where you can get away from it all. Of course, with an isolated location usually come limited or remote emergency services. Make sure your dream home is a reasonable distance from a hospital, fire station and/or police station and that the trip to one of these locations would not be perilous in an emergency.

Determine the likelihood of a natural disaster. Many spots where you might love to own a vacation home could be prone to hurricanes, typhoons, earthquakes, fires, etc. Owning a home in an area that is often affected by natural disasters could increase your stress level - both at home and on vacation - and may not be worth it in the long run. Your homeowners' insurance coverage will also be more expensive in these higher-risk areas. Spend time researching the area before you buy. Is it prone to flooding, beach erosion or mudslides? It's much better finding out before you buy than afterwards.

Consider the availability of off-season maintenance. If you buy your vacation home far from your regular home, make sure someone is available to perform routine as well as emergency maintenance during the off season. There is nothing worse than arriving at your vacation home to relax and finding roof leaks, mold and mildew, rodent infestation and other nasty surprises. It's wise to hire someone who lives nearby to keep an eye on your property in the off-season and report back to you on a regular basis.

Purchase a homeowner's insurance policy for your vacation home. Buying homeowner's insurance on your vacation home is essential. While you might be tempted to choose a high deductible in order to keep premium costs low, remember this could mean you spend more of your personal savings if you have a loss, or that you are not able to make yourself whole after an insurable incident.

Review your life insurance. If you want to keep your vacation home in your estate, then you need to review your life insurance coverage. Most people find they need to purchase additional coverage to assure their family has the resources to pay off the mortgage on the vacation home, should the unexpected happen. Retirement funds should not be spent paying off a second home if it can be helped. Affordable term insurance from a reputable company is usually a good solution to providing adequate coverage for a low price. The insurance experts at SBLI of Mass. can provide you with a free coverage review and quick life insurance quote at www.sbli.com or (888) GET-SBLI (888-438-7254).

SBLI and The No Nonsense Life Insurance Company are registered trademarks of The Savings Bank Life Insurance Company of Massachusetts, which is no way affiliated with SBLI USA Mutual Life Insurance Company, Inc. NAIC # 70435. SBLI products may not be available in all states.

Courtesy of ARAcontent