It is important to have a home insurance policy for your primary residence. However, it is also important to insure your second home!
In case you’re wondering,
A lot of people forget about this and end up in serious trouble. It can be hard to find the best rates and coverage when you don’t know what you are doing. That’s why it’s important to make sure that you have the information you need before buying an insurance policy for your second home or vacation property.
Second Home Insurance
Let get down to business
A policy that covers a property that isn’t your primary residence is known as second home insurance1. If you own a second home, you know that you can’t always be there to protect it, which leaves it vulnerable to threats.
A second home is a property that you buy to live in for a period, even if it’s only for a portion of the year. They’re popular among retirees looking to buy a second home after paying off their primary dwelling. It must be some distance from your principal residence to be termed a second home, though this criterion may differ per lender.
Because there’s no need to purchase a vacation home close to your primary abode, many lenders want a second home to be at least 50 miles away. Vacation houses, pieds-a-terre2, work-related residences, and any other sort of single-unit property not subject to a timeshare agreement are examples of second homes.
Do You Need Second Home Insurance?
Your secondary residence requires the same level of security as your primary residence. It is, however, more vulnerable to thieves, squatters, and weather-related damage because it remains uninhabited for extended periods of time. If something were to happen, a conventional homeowner’s policy might not cover you.
To cover the additional risk of keeping your property empty for a long period of time, you may require a separate second home insurance policy, and the cost of second home insurance is determined by a variety of factors, including the location of your property and how often and for how long it is occupied.
What Cover Do You Require?
There is no one-size-fits-all solution to this problem. It’s critical to inform your insurance provider that the property isn’t your primary residence, so you may select the coverage options that best suit your needs.
Let’s have a closer look:
A second property needs the same level of protection as your primary residence, so consider getting:
- Buildings Insurance
Even if you don’t have a mortgage, buildings insurance is a good idea for all properties, and policies for second homes can be tailored to your unique needs, such as insuring your unoccupied house.
- Contents Insurance
Second-home contents insurance protects the home’s contents, such as furniture and appliances, and is especially useful for furnished houses.
You can purchase these policies separately, or under one combined policy.
There’s also optional extra coverage, such as:
- Accidental damage insurance
- Home emergency cover
Finding Your Second Home Insurance
Check with your current homeowner’s insurance company to determine whether your coverage may be extended to cover your second house. Because some insurers give a discount for adding another property, this could save you money, and it will make managing your coverage easier.
Consider the following factors when looking for the best policy:
Let me show you:
- How long has your property been vacant?
- How much cover do you need?
- Do you require any additional cover?
What's the Difference Between a Standard Home Insurance Policy & Second Home Cover?
Because there are so many parallels between a primary and secondary home insurance policy, it’s tempting to mistakenly believe that both properties require the same level of protection. The insurer will specify many of the variations in your second home policy. If this is the case, you must adhere to your insurer’s terms and conditions.
Do I Need Public Liability Insurance for My Second Home?
Some homeowners’ insurance policies include a public responsibility clause. However, this is only necessary if your home is rented
What Other Exclusions Are Common to Second Home Insurance Policies?
Damage to accessories on your building, such as solar panels, may not be covered by your insurance coverage. In the same way that improper or unapproved security features can void your insurance coverage, so can incorrect or unapproved security features in your vacation home.
What if My Second Home Is Empty for More Than Two Months?
If you know your vacation home will be vacant for more than 30 days, you should acquire prices for unoccupied property insurance as well. Insurance policies for vacation homes may be limited to a 30-day period.
Getting adequate coverage for your second home is just as important as getting coverage for your first residence. A standard house insurance coverage is typically not appropriate for a property that isn’t your primary residence or family home.
In the event of a claim, this could put you in a tough situation. Because you might not always be there or other people may be renting the house from you, you need insurance that is tailored to the way you use your second property.