![]() If you need higher limits than offered by the homeowners policy, ask whether you can add your second home to your existing personal umbrella policy, add a personal umbrella policy, or an excess liability policy. Many policies offer $500,000 liability protection limits, and some go as high as $1,000,000. If you decide to rent your second home, talk with your insurance agent to be sure that you are fully protected. This coverage will also cover medical costs and court costs. ![]() We have all heard horror stories about how abusive renters can be of other's property, or the tragic story of a renter falling off a balcony when sitting on a weakened balcony railing or falling down the stairs! A higher liability limit will protect you and your assets if you are found responsible for an injury to someone on your property who doesn’t live in either of your homes. You will most likely need additional coverage, like landlord insurance and increased liability protection. If you are going to rent out the home, you may need a more comprehensive insurance policy that will cover the full cost of replacing the home, and the insurance carrier will likely increase your rates. Renting can help offset costs of maintaining a second home, but know that renting your home makes the property subject to more “wear and tear” and increased liability exposure. Renting your second home can bring additional income as an investment property. These risks are not typically covered under a homeowners policy and will require a separate policy, which carries its own limits and a separate deductible for each policy. Location also increases insurance risks, which increase premiums.īeside the homeowners policy, you may need to purchase additional coverage in the form of riders or additional policies for flood risk, wind and hail, named storm risk, or earthquake. Moreover, second homes are often located in an area where the home may be more prone to risks such as floods, named storms, wind and hail, earthquakes, mudslides, fires, and the like. Second homes are often vacant, making them more susceptible to break-ins and increased damages from leaks and fires. The risks that determine your insurance rates are slightly different for second homes. Insurance carriers view second homes as riskier to insure than primary homes. The type of insurance policy should reflect the type of structure you purchase: Do you need a policy that covers a condo/townhouse, or do you want a guaranteed replacement dwelling homeowners policy? This insurance policy, like your primary homeowners policy, will offer coverage for the home known as dwelling coverage for the physical structure of your home, personal property coverage for your personal belongings, liability protection coverage to protect you in case of an injured party, and other necessary coverage exposures. You may find that insurance for your second home is a little more difficult to acquire. There is no such thing as one-size-fits all homeowners insurance. How is a second home’s insurance different? Knowing the ins and outs of insuring a second home can help as you make your dreams a reality. Once that dream comes true, and you have found your new home, how to best insure your property will be of utmost importance. Many people dream of a second home-a place to go for some rest and relaxation, a place to call your own, a place for family and friends-or an investment property for you and renters.
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