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Insuring Your Second Home Thumbnail

Insuring Your Second Home

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

The Unique Risks of a Second Home

Your current homeowners' policy may allow for coverage of two properties under one policy. Still, 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 unique risks you may need to cover:

Long Periods Without Occupation

An unoccupied home can invite trouble. There is no one to fix a leak, respond to weather damage, or even report a fire without a presence. 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 more significant losses, such as fire hydrants or fire departments. 


When you’re not using it, renting out your home could be a good idea to offset ownership costs. 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 liability coverage to protect you from any increase in risk to your 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 situation.

  1. https://www.nar.realtor/blogs/economists-outlook/vacation-home-sales-are-getting-a-pandemic-boost

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