You enjoy the freedom a second home offers. You can escape cold weather or plan an easy getaway for a day, a week, or an extended stay. But owning two properties comes with additional responsibilities. One of the list-toppers is insurance. Maintaining proper coverage for both properties is essential. Here’s how it’s done.
First and foremost, consult with your insurance provider. They can recommend the best policies for appropriate coverage. For example, your homeowner’s policy may extend some coverage for a vacation rental property, but it’s likely insufficient for full coverage of a second home.
In most cases, it’s best to establish a separate policy for your second home. In doing so, you can set up the coverage to make it appropriate for each property. For example, the second home may face hazards that the first does not, such as flooding or tropical storms. Additionally, a vacation home may experience long periods with no occupants. This makes it more susceptible to burglaries and unchecked leaks.
If your second home will be used as a guesthouse or rental, this also affects the type of coverage you should maintain. In this case, you might be liable for injuries to tenants or damages they cause. A landlord policy would likely be the appropriate coverage for this situation, rather than a second homeowner’s policy.
To offset costs for multiple policies, you may be able to add a security system or other safety features. Your insurer can further advise you on how to reduce your premium for each property.