Homeowners Insurance and a Second Home

If you are thinking about purchasing a second home or have found one you’d like to purchase, you should also consider the fact that you’ll most likely need to invest in a second insurance policy as well. This will not only protect your home and belongings, but is typically required by the lender if you have a mortgage on your second home.

What Does My Current Policy Cover?

There are some situations in which you can extend the liability coverage from the policy on your first home, but that is used in the case of an injury on your property in which you are found liable. This means your existing policy can help pay for any medical or legal expenses that are sustained.

If  you have a vacation home, you will usually find that the policy is a bit different because that home will have some of the riskier elements due to its location; for example being near water or snow. The reason people want a second home or vacation home is to get them away from their primary residence which is most likely in a traditional neighborhood versus a place they might take a family ski trip.

Taking a Policy Out on a Second Home

The policy on your second is generally more limited as well because it’s written on a “named perils” basis because the second home is not occupied full time. With this type of policy, your home would be covered against specific events named in your policy. This policy also has limitations with regard to other structures on your property which means the coverage is usually less than you would find with a conventional policy.

Even though you may not be living in your second home full time, that doesn’t mean it shouldn’t be as protected as possible. One thing you should consider is making sure your policy includes personal property coverage. This coverage will help if you replace items in your home like furniture after you’ve filed a claim.

Policy Additions to Consider

Another way you can make sure you’re maximizing the protection on your policy is to take out a personal umbrella policy. This will usually extend to a second home but may have certain limitations like not being able to rent out the second home. You may also want to look into specific types of coverage that are available due to the type of home you have like flood insurance or even boat insurance.

If you are buying a second home, saving money is usually going to be a top priority, so another thing you should consider is bundling our policy if possible in order to save some money. This can be done if you are working with the same insurer for both policies or if you have certain security features will help to lower your premium.

Contact Us Today!

Buying a home can be a very exciting experience and we want to make sure you keep that home safe and secure. Don’t be afraid to reach out for all your insurance needs to the team at Willoughby Insurance in Buffalo, NY!