Second Home Homeowner's Insurance

14 April 2021
 Categories: Insurance, Blog

Whether you own a vacation home or a second home you rent occasionally, you need to cover it with a homeowner's insurance policy. If your second home has a mortgage, then the lender likely requires insurance. Your current homeowner's policy will not be sufficient. Continue reading to learn more about how and why vacation homeowner's insurance differs from your main policy.

Differences Between Vacation and Main Home Coverage

Insurance coverage for a second home is very similar to coverage for your first home. However, most people need a separate policy for each home. You may need more insurance to cover certain perils because vacation homes tend to have additional risks. Homes in some areas may also be difficult to insure. Second-home policies generally cost more than primary home coverage.

Factors Affecting Homeowner's Insurance Rates

Your covered perils are similar to your primary home insurance. However, your rental home may have additional considerations. Many insurance companies consider second homes to be a higher risk for the reasons listed below.


Homes located in certain locations, like on a beach or a lake, may be more likely to suffer from flood or storm damage. Homes in some areas may also be more likely to be vandalized or broken into.

Frequency of use

Homes that are vacant much of the time are at higher risk of damage and theft than those occupied. The more you plan to use your second home, the less risk your second home appears to the insurer.


If you plan to rent out the home regularly, you may need landlord insurance to cover liability issues. However, your current provider may extend insurance if you have an umbrella policy and only rent your second home once or twice.

Ways to Reduce Second Home Insurance Costs

Certain factors can help keep your second home insurance costs down. For example, costs may be lower if your second home is a condo or within an HOA area. These areas often have more security. You can also install security and sensors in your home to monitor for break-ins and potential problems. Also, see if you can bundle both homes under the same insurance company. If you can, you could get special policy features and discounts.

Whether you have a mortgage on your second home or not, second home homeowner's insurance is important. Without it, you could risk losing a large portion of your investment. If you plan to buy or insure a second home, talk to your insurance agent to get the best policy for you.

Reach out to an insurance agency in your area for more information.