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A Quick Guide to Insuring Your Minnesota Lakehouse

Beautiful two story contemporary house on a lake with balcony and scenic windows

Owning a vacation house in Minnesota near the lakes is a dream of many. A Minnesota lakehouse is a significant investment, and if you manage to buy it, you need to protect your new real estate. 

Whether you plan to stay there now and then or during the entire season, proper insurance for your second home is a must. That’ll give you peace of mind and get your back in case of unforeseen property damage and costs.

If you need help choosing the best insurance policy for your Minnesota lakehouse, get in touch with our insurance experts.

Reasons to Insure Your Minnesota Lakehouse

Your Minnesota lakehouse will probably be unoccupied most of the year. The owner’s absence means the property requires extra protection because the chances of damage or burglary are higher than when you’re present 24/7.

Here’s a list of risks that make vacation home insurance necessary:

  • Burglary and theft because robbers often target unoccupied homes
  • Natural disasters 
  • Flooding, especially if your second home is closer to the lakeshore
  • Intentional or accidental damage by temporary occupants (if you rent out your vacation home)

If you are looking to buy a Minnesota lakehouse with a mortgage, note that most lenders require insurance for your second home to approve your loan.

How to Choose Insurance for Your Minnesota Lakehouse

House insurance form for homeowners and model of home.

Insurance agencies offer a vast range of policies with different levels of coverage. Your first stop will probably be your current insurer, but you’re free to shop around for better rates and find the policy that suits you best.

Follow these simple steps to find suitable insurance for your Minnesota lakehouse:

  1. Inform about insurance policy types for your vacation home.
  2. Check your options with your insurer.
  3. Research competitive insurance companies and their policies.
  4. Compare insurers’ offers.
  5. Discuss policy requirements with a chosen insurer and get the best deal.

Insurance Options for Your Minnesota Lakehouse 

Insurance companies have policies tailored to every lakehouse owner’s needs.

Vacation Home Insurance

People don’t spend a lot of time in their vacation homes, so these properties are more susceptible to theft, burglary, and damage. Insurance companies got your back with vacation home insurance, which differs from regular home insurance. 

Greater risk forces insurance companies to set higher premiums for such policies. They cover damage from fire, explosions, storms, and theft. You can also add liability and medical coverage to this policy to prevent high costs if someone suffers an injury at your property.

Insurance companies also determine policy terms based on home location and condition. In the case of your Minnesota lakehouse, they assess the risks of storms, landslides, or fires. If your vacation home is in a riskier area, you’ll pay higher premiums. The same happens if your lakehouse is old or already damaged.

Landlord Insurance

Renting out your Minnesota lakehouse can be a great way to make passive income, but it carries certain risks. These can be prevented with landlord insurance, which protects your property from damage but also includes liability and financial loss coverage in case of unforeseen circumstances during the rental period.

You can take short-term rental insurance if you have a single Minnesota lakehouse for rent. But if you plan to expand your rental business, you should increase your coverage limits. Also, it’s advisable to upgrade your policy by adding, for instance, worker’s compensation in case you hire staff like housekeepers, janitors, etc.

Umbrella Policy

This is extended insurance recommended for Minnesota lakehouse homeowners who own a car or boat. For a slightly higher annual premium, this policy provides extra liability protection for your real estate and movable assets. You can agree on the coverage amount with the insurance company.

Things to Consider When Choosing Minnesota Lakehouse Insurance

Things to Consider When Choosing Minnesota Lakehouse Insurance

Once you find the best insurance policy for your Minnesota lakehouse, you can do some things to avoid paying high coverage.

  • Add flooding insurance: Lakehouses are susceptible to flooding, especially when located on water or near shores. Since regular insurance policies don’t include flood risk, buy an extra policy and have a piece of mind.
  • Insure your watercraft and semi-permanent water structures: If you have anything on your lakehouse property that can suffer damage or be stolen, insure it. Discuss with your insurer what can be included in the umbrella policy and what extra costs you have to pay.
  • Invest in your vacation home security: Having someone to take care of your Minnesota lakehouse, adding a security system, and installing smoke detectors and fire alarms are excellent ways to reduce premiums by up to 20%.
  • Re-evaluate your insurance needs: Insurance experts suggest annual insurance reviews since circumstances change, so as your insurance needs.

Wrap Up

When it comes to insuring your Minnesota lakehouse, it’s always better to be safe than sorry. Buying a proper insurance policy will give you peace of mind. Research your options, and if you still have any doubts, reach out to the seasoned insurers on our team to help you find the best policy for your needs.

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