Owning a second home—whether it’s a vacation spot or a cabin in the woods— is an exciting milestone. But with this new chapter comes the additional responsibility of adequately protecting your new property. In this blog post, we’ll cover everything you need to know about insuring your second home, helping you enjoy it with peace of mind.

Understanding the Basics

Insuring a second home involves securing a homeowners insurance policy similar to your primary residence. However, there are specific differences and additional considerations unique to second homes.

Homeowners Insurance Policy

A standard homeowners insurance policy typically includes:

• Dwelling Coverage: Protects the physical structure of your home against covered perils.
• Other Structures: Covers detached structures such as garages, sheds, and fences.
• Personal Property: Insures your belongings inside the home.
• Loss of Use: Pays for additional living expenses if your home becomes uninhabitable due to a covered loss.
• Personal Liability: Protects you against lawsuits for bodily injury or property damage that you or your family members cause to others.
• Medical Payments to Others: Covers medical expenses for guests injured on your property.

Additional or Alternative Policies to Consider

Hazard Insurance

In addition to the policies above, you are encouraged—and sometimes your lender will require you—to purchase hazard insurance to protect your property against natural disasters like fires, earthquakes, or severe storms. Secondary homes often need this because they might be in areas prone to these risks and are often unoccupied for long periods, increasing their vulnerability.

Liability Insurance

Adding liability insurance is a wise choice, as it covers accidental injuries to your visitors. This is particularly important for secondary homes that tend to host more guests. Liability insurance helps protect against potential lawsuits and medical expenses resulting from accidents on your property.

Personal Umbrella Liability Policy

For extra peace of mind, consider a personal umbrella liability policy. This extends your liability coverage beyond the standard limits, providing additional security for all properties listed in the policy.

Dwelling Fire Insurance

Since most homeowner policies require occupancy as a condition of insurance, infrequent visits to your second home might prevent you from obtaining full homeowners coverage. Dwelling fire insurance is an alternative option for residential rental or non-owner occupancy properties, including vacant properties. It offers coverage for the home and other structures against named perils like fire, lightning, wind, hail, and smoke. You can also add personal property protection and liability insurance to a dwelling fire policy for more comprehensive coverage.

Renting Out Your Second Home

If you plan to rent out your second property, tenant-occupied dwelling insurance is essential. This coverage protects against damages from fire, storms, burglary, and vandalism. However, it does not cover your tenant’s personal property. Whether you rent the property furnished or unfurnished can affect your insurance needs, so it’s crucial to inform your insurance provider and possibly require your tenants to carry renters’ insurance.

Cost Considerations

Insuring a second home usually costs more than insuring your primary residence. Premiums are based on several factors, such as the amount of time the home will be unoccupied, its location, and the liability from renting the property. Homes in areas prone to hurricanes, wildfires, or those with features like pools can have higher premiums or more stringent coverage requirements.

Tips for Lowering Insurance Costs

1. Bundle Policies

Combining your second home insurance with your primary residence and auto insurance can lead to discounts.

2. Increase Your Deductible

Choosing a higher deductible can lower your premium. Just make sure it’s an amount you can afford to pay out of pocket in the event of a claim.

3. Maintain Your Property

Regular maintenance and updates, such as replacing old roofs or updating plumbing, can reduce the risk of damage and may lower your premiums.

Protect Your Home Away from Home

Insuring a second home is a lot like insuring your primary home. You need a thorough homeowners insurance policy with adequate coverage and limits. However, there are some differences, like requirements you may have to meet to get insurance, and the overall cost. But once you’re comfortable with the specifics of your second home policy, you can rest easy knowing that your sanctuary is protected and ready for you and your family to enjoy.

If you have specific questions or need personalized advice, reach out to our team at Chalmers Insurance Group. We’re here to help you navigate the complexities of insuring your second home, providing you with the peace of mind you deserve.

Back to Learning Center