second home insurance

Second Home Insurance: Things to Know

January 5, 2022

Second homes offer several benefits such as providing a place to relax with family, friends, or solo. It may also help owners earn some extra cash by renting it out when the home isn’t in use.

However, owning a second home means you’ll also need to invest in different sorts of insurance. It doesn’t matter if your second home is located in the hills, on a beach, or elsewhere. This guide will help you navigate second home insurance so that you can enjoy your property without worrying about financial or legal issues.

Can Your Insure Multiple Properties under the Same Policy?

There are different risk factors for each property, which is why you cannot use the same policy for your primary and secondary home. However, you can still buy both policies from the same insurance company if you’re satisfied with their coverage.

What’s Second Home Insurance?

Second home insurance is a coverage plan for your property apart from your primary residence. You can have a vacation home or a condo that would still qualify as a second home for you legally. This policy is more essential than the one for your primary residence because these houses are left unoccupied more often.

This increases the chances of fires, burglary, etc. In addition, you may need to cover other possible risks depending on the location of your second home.

What Does Second Home Insurance Cover?

Most of these policies offer dwelling coverage. This broadly means that any expenses you may incur due to unforeseen events will be covered. It’s important to note that dwelling coverage only protects the home and it’s structure. Luckily, other insurance policies will cover things such as your personal belongings.

You can add additional coverage to your original plan as an add-on, depending on the risk factor that your home has. It’s best to take a look at the insurance policy to have a clearer view of what it covers.

Talk with your provider, you may be able to extend your primary home’s liability coverage to your other home. This covers situations where a guest in your second home gets injured due to your negligence.

In addition, we suggest checking to see if your liability coverage applies to possibly dangerous items, such as hot tubs, fire pits, pools, playground equipment, etc.

What Does Second Home Insurance Not Cover?

Typically, second home insurance doesn’t cover the following:

  • Protection for your boat, cars, ATVs, etc.
  • Personal umbrella
  • Natural disasters

The items listed above aren’t included in a typical homeowners’ insurance policy. Therefore, you’ll need to purchase this coverage an add-on.

However, you can discuss the terms of your coverage plans with your insurance provider and see what you can do to get maximum coverage.

Bottom Line

Insuring your second home is just as important as having an insurance policy for your primary residence. However, you must confirm that your second home insurance provider is reliable and provides suitable coverage. Shop around and see what works best for you and your needs.