You protect your primary residence with homeowners insurance, and you should invest in insurance coverage if you own a second home, even if you only use it occasionally. Second homes have additional risks that are not present in homes used as primary residences. If a vacation home is unoccupied, you may not be aware of a fire, burst pipe, or robbery until the damage is severe. This is why it is crucial to have insurance.
Can Two Residences Be Covered under One Policy?
Your homeowners insurance company may not allow you to cover both your primary residence and your vacation or rental home under the same policy. Check with your insurer.
Even if your company does allow you to cover both properties under the same policy, it might make more sense to have separate policies. Your vacation house could have different hazards than your primary residence. The properties could have different values, and the possessions inside them could be worth different amounts of money.
Types of Insurance Coverage for Second Homes
If you rent out your property or use it as a guesthouse, you should carry liability insurance. This will provide coverage if someone is injured when staying in your house. If your second home is used solely as a rental property, you should get landlord insurance, not a standard homeowners insurance policy. You should also ask your insurance company about fair rental income protection. If your rental property becomes uninhabitable, this coverage will reimburse you for lost rental income.
You also might want to consider umbrella insurance. This will provide secondary liability insurance in case someone files a claim or lawsuit for more money than the amount of your homeowners insurance policy.
Get a Quote for Insurance for Your Second Home
If you own a second residence that you use as a vacation home, rental property, or guesthouse, you should protect it with insurance. Second homes have the same risks as primary residences, and some additional ones. With homeowners, landlord, umbrella, or fair rental income insurance, you can make sure you will be protected no matter what happens. Petruzelo Insurance can help you compare rates from leading insurers. Contact us today to get a quote.