Why Second Home Insurance is Just As Important

There’s a lot of appeal to having a second home, be it solely for giving your family somewhere to enjoy a vacation away from the usual, or as a potential investment property.

However, a second home comes with many of the same costs and considerations as a first home, with second home insurance being amongst them.

Here, we’re going to look at what you need to know about second home insurance, why it’s important, why it’s recommended that you get it, and how to make sure you’re getting the right coverage for your money.

Why is second home insurance important?

To talk about why you should consider second home insurance, let’s look at some reasons it’s important, first and foremost:

Your primary homeowner’s policy may not cover it

Before you decide on whether or not to purchase second home insurance, you should first take a closer look at your primary homeowner’s policy.

There is a chance that it may cover some of the insurance you need.

However, in most cases, it won’t cover the property or contents inside the property. If you have liability insurance against any accidents or injuries in the first property, this may extend to the second.

Your second home might need it more

There are certain kinds of property that are at greater risk of damage, and your insurance policy should reflect that.

We will look more at choosing the right second home insurance, but properties near rivers and on the coast are at a higher risk of getting damaged, meaning it’s more important you have some financial protection fro them.

You may need specific types of coverage

What kind of insurance a property needs will depend on its type.

Apartments, listed buildings, non-standard homes, and rental properties will need different kinds of insurance to ensure that you’re fully protected.

Second home insurance policies can be amended to include types of coverage you wouldn’t normally need on your primary home’s coverage.

What should you cover?

The level and types of coverage included in a second home insurance policy will differ from case to case, as it would with any primary homeowner’s insurance.

For instance, you need to consider how the home is being used, whether it’s solely for the personal use of you, your friends, and family, or whether you may renting the property out (in which case, you may need additional insurance.)

If you’re considering liability insurance, then this may come as an extra to the insurance that covers the home and the contents.

However, as mentioned above, you may want to look at any liability coverage on any primary homeowner’s insurance policy you have, as it may cover you on your second home.

Otherwise, an umbrella insurance policy may have you covered.

There are additional risks you may need to consider. For instance, typical second home insurance policies may not cover things like floods, earthquakes, or hurricanes.

If you’re in a high-risk area for any of these, then you will want to consider getting a policy that protects your finances in those instances, too.

Personal flood insurance can cover you for the costs of water damage not typically addressed in homeowners’ policies. Meanwhile, insurance for coastal properties is the kind of policy that accounts for added risk inherent in the location of the property.

In general, you want to make sure you have enough second home insurance to cover the costs of entirely repairing the home and contents in the case of something like a fire or a destructive storm.

Underinsure yourself, and you could end up making a net loss in the event of a real catastrophe.

How to lower your second home insurance costs

While you want to ensure that you get the kind of coverage that can help protect your finances against the risk of losing the home entirely, you also want to make sure you’re paying over the odds.

Getting a cost-effective deal on a second home insurance policy is just as important as getting the policy that offers you the kind of protection that you need.

As such, here are a few ways to make sure you’re getting the right deal:

Compare your options

When it comes to second home insurance policies, we at Anderson Insurance Agency believe that we offer the best prices for the best service and the coverage levels that you demand.

However, we recommend all customers inspect the market to ensure that their interests are represented by the best insurance providers around.

You don’t want to skimp too much on insurance, so be sure to check what cover you’re getting at what price point and find the most cost-effective deal, rather than just the lowest.

Lower your premium by securing your property

The lower a risk the property is, the more you might be able to save on your insurance.

The premium is how much you pay to keep the policy in place, and it can be reduced by, for instance, installing better security provisions to the home, such as security cameras.

Take advantage of discounts

You may primarily be in the market for second home insurance, but it could be possible that getting another policy alongside it could help you reduce the price.

This is known as a bundling policy, and many insurance agencies offer it, allowing you to get more than one kind of policy at a time by reducing the cost of both.

There may be other customer-specific or time-based discounts available, so always be sure to ask the agency you’re asking about what deals are available.

Do you need second home insurance?

Every property needs to be insured if you don’t want to be at risk of eating major repair and reconstruction costs alone.

At Anderson Insurance Agency, we can help you find the second home insurance policies you need with the best service at the best prices.