Insuring A Vacation Home

Your vacation home needs to be insured, as with any residence. However, since the risks are different, the coverage might cost more than your primary homeowners policy. Secondary vacation homes can give you a break from work, and may even be a good investment. They may, however, present more of an insurance risk that your primary residence due to the fact that you do not physically occupy your second home as frequently putting in in more danger for theft, vandalism and easily undetected damage, like burst water pipes.

Key Factors That Impact Vacation Home Insurance Costs

While the homeowners policy for your second home will provide the same types of coverage as your primary homeowners policy, the following factors will likely impact your insurance costs:
  • Location is always a factor in homeowners insurance costs – for example, you need additional insurance if your dwelling is in a flood-prone area. With vacation homes the location may make it more desirable yet also make it more expensive to insure. For instance, a ski house in a remote or mountainous area could be at greater risk for damage due to wildfire. A beach house may be more exposed to wind damage or storm surge from a hurricane. These location-based risks will impact the price of coverage, and in some cases may even incur higher deductibles.
  • Type of Property. As with any house, the age and type of building materials used in a vacation home will impact the cost of insurance. What’s also important is whether your second home is a single-occupancy house, a condominium or a townhouse. A condominium in a ski resort area, for instance may have lower insurance costs that a stand alone chalet. This is because a homeowners association maintains the property, and may provide security. Importantly, the association insures the exterior of the property (the cost of is generally included in the monthly maintenance fees). Your personal condo insurance will cover the specific areas of the unit listed in the policy, as well as your belongings.
  • Amenities. Pools and hot tubs add risk to your second home. If your vacation residence is equipped with these or other special amenities, you may pay a higher insurance premium and you should also consider additional liability protection, which will increase insurance costs as well.

If You Plan To Rent Out Your Property

If you plan to rent your vacation home to others, your homeowners insurance costs will likely increase, and you may need to purchase additional coverage. Because renting your second home entails additional, more complex risks, its a good idea to consult with your insurance professional and learn more about coverage for renting out your home to others.

Ways To Save On Second Home Insurance Costs

There are steps that you can take to help make the cost of insurance more affordable.
  • Choose A Location With Less Risk. A home further from the beach won’t be as susceptible to storm surges, for instance.
  • Bundle Your Policies. If you insure your second home with the same insurer that provides coverage for your primary residence, you may be able to save on premiums.
  • Install An Alarm System. A centrally monitored alarm system that detects both fire and break-ins can help lower the cost of insurance.
  • Gated Home. A gated community with a guard person 24/7 may be required by some carriers for vacation secondary properties and lower your insurance costs.

A Sihle Insurance Group Agent 

Is happy to assist you on our Agent Hotline: 844-221-1152.

***To make claims easier, create an inventory of your vacation home contents.