Second Home Insurance: How It Differs from First

You’ve purchased a second home and are thrilled with the idea of a permanent getaway spot. Now it’s time to ensure that your vacation home will remain just as safe as your primary home. Second home insurance can be a costly addition to your getaway plans. Also, second home insurance can cost more than the insurance at your primary home. Why? Read on to learn more about the ways your second home insurance coverage will differ from your first home’s coverage plan.

Taking out a second home coverage plan is a wise move. You will want to cover the exterior and interior contents of your home, just as you would with your primary place of residence. However, when it comes to coverage on your holiday home, you should search for a specialist in the second home insurance market. The specialist can help you find great deals on your insurance, while also dispensing invaluable advice about coverage on this additional property.

Oftentimes, coverage for your second home will cost more than you first home. Why? Simply put, you’re not there as much. Anything can happen while you are away for long periods of time, including leaking or busted water pipes, damage to the exterior of the home and other calamities. Since this is not your primary residence, it can be weeks or months before the damage is fixed, causing much more destruction to the property. Your insurance will have to account for this.

Look into a gated community for your holiday home. Many times, you will see a 10% discount with your second home insurance. If you are in the countryside, prove that your local fire department has access to a nearby water source like a lake or stream and you can see a discount of 25% off your insurance for the second home. Will you have a caretaker for your additional property? If you can convince the insurance company, you can occasionally enjoy a break in coverage here as well.

Contact your current insurance company first and see if they will give you a lower rate on insurance for your second home by combining the two policies together. You can sometimes look at package policies, which will combine multiple properties, cars, boats and other umbrella coverage items together for a great deal.

Condos are popular second home choices and part of the monthly maintenance fees associated with these properties go into insurance coverage for the structure. However, you will want to cover the interior value of the home, as well as any upgrades like a gourmet kitchen or whirlpool spa tub.

Finally, if you are planning to rent out your second home, you’ll see your insurance rates jump at least 20%. This increase will be because your home is at greater risk if the owners are not present. Plan ahead when you look into home insurance for your vacation home.