Insuring Your Second Home

Paul Tarins, RICP®,WMCP®,CSRIC™

Vacation home sales rose 44% in the third quarter of 2020 year-over-year, much higher than the 13% increase of existing home sales.¹

When it comes to insuring your second home, you may find that the coverage you need is quite different from what you have on your primary home.

The Unique Risks of a Second Home

Your current homeowners policy may allow for coverage of two properties under one policy, but because there are unique risks with a second home, a separate policy may be more conducive to obtaining the coverage you need.

Here are some of the special risks you may need to cover:

Long Periods Without Occupation

An unoccupied home can invite trouble. Without a presence, there is no one to fix a leak, respond to weather damage, or even report a fire. It may also become a target for burglars.

Isolated Location

While seclusion may be a top priority for a vacation home, it may also mean that you are far removed from services that can prevent larger losses, such as fire hydrants or fire departments. 

Renters

Renting out your home when you’re not using it could be a good idea to offset the costs of ownership. However, having renters (or even guests) may increase your liability for any damage or injury associated with their stay.

Be sure to work with an agent to secure the right coverage. Also, discuss the benefit of raising your personal liability coverage to protect you from any increase in risk to your personal wealth that may come with offering your home to guests and tenants. Keep in mind that the information in this material is not intended as legal advice. Please consult a legal professional for specific information regarding your individual situation.