Best Homeowners Insurance for Second Homes: What You Need to Know
Owning a second home is certainly a wonderful luxury. Whether it’s a beachfront cottage, a mountain cabin, or a city apartment; a second home is a true luxury. When it comes to properly insuring your second home, it can be quite different than ensuring your primary residence. In this post, we’ll go over how to find the best homeowners insurance for your second home and all of the essential factors to consider when selecting the right policy for your needs. Feel free to contact us should you need assistance and we’ll be happy to help.
Understanding the Unique Needs of Second Homes
Second homes are often used much differently than a primary residence and will likely face different risks when compared to your primary residence. Your second home may remain unoccupied for extended periods of time, which could increase the risk of theft, vandalism, or damage which has gone unnoticed for several months. Additionally, the location of your second home could be in an area which is prone to flooding, hurricanes, wildfires, etc… This can significantly influence the overall insurance needs and costs with your second home’s homeowners insurance policy.
Key Coverage Considerations
Dwelling Coverage: Ensuring your insurance policy covers the full cost to rebuild or repair your second home in the event of any sort of damage from covered risks such as fire, storm damage, or other perils will place you in a better position should an event such as that occur. The amount of coverage should accurately reflect the home’s overall replacement cost, not just its market value.
Personal Property Coverage: Personal property coverage will help to cover the loss of any furniture, appliances, personal items, and potentially cover the loss of valuable art or jewelry stored within your second home. You may possibly need to purchase additional riders or endorsements to properly cover art and jewelry if you choose to keep them within your second home.
Liability Coverage: Liability protection is a crucial element of any second home homeowners insurance policy. This coverage will be able to protect you from legal and medical costs if someone is injured on your second home’s property.
Additional Living Expenses (ALE): If your second home is damaged and requires repairs which temporarily displace you, ALE coverage may be able to help cover the associated costs with temporary accommodations and living expenses during the repair period.
Choosing the Best Homeowners Insurance for Second Homes
Assess the Risks: Assessing the risks associated with the location of your second home is important. Certain areas may require more coverage than others.
Compare Insurance Providers: Shopping around and comparing homeowners insurance providers for second homes can provide you with multiple options which you can then use to determine the next best steps. It’s often beneficial to use an insurance agent who specializes in second home insurance and who can best provide tailored expertise to your unique needs.
Consider Bundling Policies: If possible, bundling can be a great way to save on your second home insurance policy. If you choose to bundle the policy with your primary residence and other insurance policies, such as boat insurance or auto insurance, you can find yourself being able to save a decent amount on your insurance premiums.
Understand Policy Exclusions & Limitations: Be sure to fully understand what your second home insurance policy does cover and does not cover. Some common exclusions for second homes may include damage from lack of maintenance, mold growth, or pest infestation; especially if the second home is left unoccupied for extended periods of time.
Invest in Security Systems & Maintenance: Having enhanced levels of security around and in your second home can help to reduce insurance premium costs. Installing security systems, storm shutters, and modernized fire alarms, along with maintaining HVAC and plumbing systems regularly can help to mitigate risks. If you take these steps to improve your second home, insurers will likely view them favorably and likely reward you with a reduced premium cost.
Regular Reviews & Updates
Given circumstances change with second homes, choosing to review your policy annually or after a significant renovation or other change will help you have the right level of coverage for your second home. Ensuring your coverage remains accurate and adequate for your needs, especially if you make any modifications to your second home, will help ensure you’re protected.
Choose Portsmouth Atlantic Insurance for Your Homeowners Insurance for Your Second Home
Choosing the right homeowners insurance for your second home requires careful consideration and the right help along the way. Portsmouth Atlantic Insurance is the right choice for you if you’re seeking out homeowners insurance experts who can identify the right second home insurance policy which fits your coverage needs and allows you to have peace of mind. Contact us and we’ll be sure to schedule a time to go over any existing policies you may have for your second home and determine the next best steps going forward. We look forward to hearing from you soon.