For a second home that you do not live full time, you probably need a separate home vacation home insurance. In some cases, insurers will extend the liability coverage on your principal homeowners insurance to include a second home instead. However, separate holiday home insurance is often necessary because the insurance companies see holiday homes as a higher risk because they are not occupied all year round. The risk of theft or vandalism is higher at these properties, as they remain vacant for many months. Water and other types of damage can no longer be detected in an uninhabited property.
What is different about holiday home insurance?
The typical holiday home insurance is slightly different from traditional homeowners. This type of policy can only cover named risks, such as theft, fire and smoke, lightning and explosions. If your home is damaged by a risk not specified in the policy, it is unlikely to be covered. A holiday home policy can provide liability protection if someone else is damaged on your property, as well as medical payment coverage.
How can I increase the protection of my holiday home?
An alternative to consider is a personal liability insurance policy that can extend to a second home. You may be restricted from renting your vacation home to qualify for this type of extended coverage. A personal umbrella policy can help cover costs that exceed your home insurance if you are sued, for example by someone who was injured on your other property.
If your second home is a waterfront property, you may also want to consider buying flood insurance, as floods are not covered by most homeowners. If you also own a boat, it may be wise to also buy a separate boat insurance.
How much does holiday home insurance cost?
Holiday home insurance can be more expensive than regular homeowners insurance, depending on several factors, including:
- Property type : A small cottage in the mountains will probably cost less to insure than a larger property on the beach. If your holiday home has a pool, your premiums may be higher, as pools increase the risk of liability.
- Home age and condition : A newer, well-maintained home usually costs less to insure than an older, more neglected property.
- Place for property : Insurers charge higher premiums for holiday homes located in areas exposed to natural disasters, such as hurricanes, floods, mud, earthquakes or forest fires.
If you are planning to rent out your holiday home that part of the year when you are not using it, you may need to purchase a rental insurance policy. Your insurance company may instead allow you to add a recommendation for short-term rental to your existing insurance. Our experienced agent can help you secure the coverage you need to protect your vacation home at the lowest available rates.