Are you in need of Second Home Insurance? Do you own your own home? If you do then there are certain things that you should know about your homeowner’s insurance policy in case you ever decide to relocate. First of all, Second Home Insurance is not the same as a Standard Homeowners Insurance policy. The kind of homeowner’s insurance you need for a second home is much like that of your first home, but just insurance rates will usually be much higher for second homes because of the increased likelihood of claim-free claims. Your coverage premiums will also depend on how risky your property is to burglary and other weather disasters, so basically the more at Risk your property is to break-in’s and natural disasters, the higher you will pay for your homeowners insurance policy.
Most homeowners who own more than one rental property should purchase two separate policies: One for their primary residence and one for their vacation home or second home. You will get two different coverage amounts for each policy, one for your primary residence and one for your vacation home or second home. You will still be required to have coverage for your primary residence, of course, so make sure to read all of the coverage policies carefully. Be aware that if you decide to cancel your primary residence policy, you will lose your coverage for your vacation home or second home, too. This is why it is important to get as many estimates as possible before you commit to anything.
When you get your Second Home Insurance, be aware that some policies only cover you for damage incurred to your primary residence. Some Second Home Insurance policies will also offer coverage for storm damage, vandalism, and theft. While these are great additions to any homeowner’s insurance policy, they may not be necessary for your particular needs. Again, double check with your agent. If you rent your vacation homes out, make sure that your coverage includes damage for those times when your tenants aren’t paying their rent.
With that said, what kind of coverage do you need? Will your primary residence be destroyed by fire, earthquake, or a flood? Do you have two or more vacation homes that are located in different communities? Do you use security alarms, fire extinguishers, and similar emergency tools for your vacation homes and second homes? All of these things could potentially increase the cost of your insurance premiums.
The most basic form of Second Home Insurance is the perils and dangers coverage. This type of insurance protects you for any liability that may occur from injury or damage to your primary residence. It doesn’t always have to cover the actual cash value on your primary residence. It can include replacement value if your primary residence has been destroyed or damaged due to a natural disaster. Your liability insurance should also include property damage coverage. You can get additional liability coverage by purchasing additional coverage from your primary insurer.
If you live in areas that are considered to be a higher risk for natural disasters, such as earthquakes and flooding, you’ll want to consider purchasing additional insurance for your vacation homes and second residence. There are some ways to reduce your premiums. Try to avoid placing items that are flammable inside of your house. If you must, place them well out of reach of children and animals. You can also buy insurance for events that have a high probability of occurring, so that if one does occur you’re protected against financial loss because of it.
What about vacation homes that are part of an individual insurance plan? Do you have to purchase separate policies for your vacation home and your primary residence? The answer is no. Because your homeowner’s insurance policy will already cover your vacation home, your insurance premiums for your seasonal home won’t increase. However, you will need to purchase an insurance policy for the entire family with the same company you purchased your primary policy with.
As an added measure of protection, many companies offer personal property coverage on their homeowner insurance plans. This means that if you or a member of your household suffers a loss due to theft, vandalism, or interruption of your utilities, this coverage will also be paid for. This means that not only will you be covered for any physical damage caused to your residence, but also for theft or destruction of personal property. Make sure that your personal property coverage is properly maintained to avoid unnecessary increases in your premiums.
