What to Consider When Insuring Your Second Home
If you are buying a second home, naturally you are going to want the best insurance coverage. However, second home insurance is typically a little bit different to insurance on your primary residence. It is likely that the properties and their locations are very different, and the way you use your second home will also be a factor in the type of insurance policy that you’ll need.
Here are some things to consider when insuring your second home:
How do You Plan to Use the Property?
There are lots of different ways people use their second homes. Some use them seasonally, some use them at weekends, and some rent them out some of the time. How you use your second home will have an effect on both the type of insurance you need and what your premiums will be like.
Houses that are vacant a lot of the time are more vulnerable to damage or theft, so this will be a factor when it comes to your insurance. However, if you rent the property out, including short term rentals, then you will need landlord’s insurance in addition to second home insurance. You may not know yet if you plan to rent out the house but do bear in mind that you’ll need this if you do decide to later on.
Flood insurance does not come as part of a normal home insurance policy, and so you need to consider if there is a risk of flooding where your second home is located. Flooding can cause serious damage, and so if it is a risk to your property, then it is definitely one you want to be insured against.
If your second home is near a river or lake then you’ll almost certainly need this, but you can check flood data in the location of your second home to see if it’s necessary in less obvious cases.
In most cases, people buy second homes in locations very different to where they normally live, so that they can enjoy splitting their time between different places. However, location can be a big factor in insurance costs.
If your secondary home is in a more rural area, for instance, it may cost more to insure because it may be far away from emergency services. This is something you’ll need to consider when looking for the right home insurance policy.
As you can see, just as your second home is likely to be very different from your primary one, the insurance needs you will have will also be different. You should not expect an identical policy to the one you have for your main home to be right for a second home. Even if the properties and locations are comparable, the way you use your second home will be different and bring with it different insurance needs.
Even so, insurance is vital, so it is wise to start looking into what kind of insurance you’ll need and getting quotes if you are purchasing a secondary property.