How Do You Protect a Second Home?

In some ways, home insurance for a second home is not so different from primary home insurance. The policies should include similar coverage areas, including Dwelling, Other Structures, Personal Property, Personal Liability, and Loss of Use. However, the specific coverage amounts and limits for your second home—and the cost to insure it—may be substantially different because this type of property typically comes with many distinct risks, including:

1. Vacancy Risks. Your second home is likely to be unoccupied for extended periods, making it more susceptible to burglars, vandals, and trespassers than your main home. Additionally, during those long stretches of time when nobody is using your second home, common property issues, from a small leak to an electrical short, frozen pipe, or ice dam, may crop up. Since there will be no eyes or ears around to detect the start of a problem, there is an increased likelihood that issues like these will result in extensive and costly damage to your home.
2. Location Risks. Since many second homes are used as vacation properties or for seasonal living, they are often located in popular getaway spots—near a lake or ocean, mountainside, or in a warmer, drier climate. Unfortunately, this also means these properties tend to be situated in areas where there is a higher chance for severe weather, like hurricanes, wildfires, and freezing temperatures, and storm-related damages to your property.
3. Amenities Risks. There are many things that homeowners like to have at their second home to make staying there even more pleasurable, from swimming pools, hot tubs, and saunas to outdoor firepits, ATVs, and boats. However, these amenities also greatly increase the possibility that someone will suffer an injury or that your property or someone else’s will get damaged.

By evaluating these and other risks associated with your second home, you and your insurance professional will be able to customize your policy’s coverage amounts and limits for your individual property and determine the necessity for any of the following additional protections:

• Watercraft Program
• Personal Umbrella Liability
• Snowmobile Endorsement
• Scheduled Personal Property Endorsement
• Water Backup Coverage
• Flood Insurance

It is also important to know that using your second home as a rental investment property can increase your property and liability risks. If you think you might rent out your second home during those periods that you are not staying there, it is essential to share these potential plans with your local insurance professional. They may recommend specific modifications to your second home insurance policy or a different solution altogether if you intend to rent your property via a home-sharing platform.

How to Save Money on Homeowners Insurance for a Second Home

The risks associated with your second home, along with its age and replacement cost, are the primary factors that an insurance company will use in setting your homeowners policy premium. There are several ways you may be able to better safeguard your property against these exposures and potentially lower the cost of your second home insurance coverage, including:

• Updating an older home to meet the current building codes in your area.
• Adding weather-resistant features, e.g., storm shutters or metal roofing.
• Hardwiring a generator.
• Equipping your home with protective devices, e.g., smoke and carbon monoxide detectors.
• Installing monitored security systems, e.g., central station fire and burglar alarms.
• Using smart home devices, e.g., water leak detection systems with a main shutoff valve and low-temperature alarms.

In addition, you may be eligible for a discount if you insure both your primary and second home with the same insurance company.

We know insuring a second home may sound even more complex than getting a policy for your primary residence. However, working with one of the independent insurance agencies in our network will make the process a lot simpler. They can assist you in selecting the right coverages for a new policy or review the homeowners solution you currently have to help make sure it is effectively protecting an investment you and your family want to enjoy for many years to come.