Secondary Home Homeowners Insurance: What You Need to Know | Openly

Owning a second home is a dream for many, providing a relaxing retreat from the everyday and offering a place to create memories. However, along with the joys of a vacation home come unique home insurance considerations. 

Unlike your primary residence, a secondary home often faces different risks, such as longer periods of vacancy and potential maintenance neglect. A second home requires a tailored home insurance policy that addresses these specific needs. 

Keep reading to learn more about home insurance coverage for your secondary or seasonal home to ensure you’re protected against the unexpected. 

At a glance:

• Understanding the specifics of a secondary home home insurance policy is critical to responsible home ownership.

• Even occasional use of a second home necessitates home insurance due to potential unforeseen events, vacancy risks, and liability concerns.

• High-value home insurance policies, such as those offered by Openly, can address coverage gaps by providing tailored protection for second homes.
  
  

Why do you need a secondary home homeowners insurance policy?

While your primary home insurance may seem sufficient, it can fall short when it comes to covering a secondary property.

Unique risks

Owning a secondary home presents unique challenges that can significantly increase the risk of property damage and loss. These risks can include factors like:

• Vacancy—Unoccupied homes can be more vulnerable to theft, vandalism, and issues like plumbing leaks or burst pipes that can cause water damage to go undetected for extended periods.
  
  
• Lack of maintenance—Less frequent visits can lead to deferred maintenance, increasing the risk of damage and potentially invalidating certain claims.
  
  

Financial protection 

Secondary home insurance provides an important safety net against property damage, loss or damage of personal belongings, and even liability protection: 

• Property damage—Secondary home homeowners insurance protects your property from various perils, such as fire, wind, hail, and other covered events.
  
  
• Personal belongings—It covers your belongings within the home, including furniture, electronics, and valuable items.
  
  
• Liability protection—It provides financial protection if someone is injured on your property or if you are held responsible for property damage to others.
  
  

What to consider when shopping for secondary home homeowners insurance

Securing home insurance for your secondary home requires a tailored approach. Navigating the complexities of secondary home insurance requires careful consideration of several key factors.

Location-based risks

The location of your secondary home significantly impacts the type and cost of home insurance. 

• Coastal properties—Properties located near the coast are more susceptible to hurricane damage, potentially requiring specialized wind and flood coverage.
  
  
• Fire-prone areas—Homes in areas prone to wildfires may need additional fire coverage, including debris removal and landscaping restoration.
  
  
• Earthquake zones—Properties in earthquake-prone regions may require earthquake insurance to protect against damage from seismic activity.
  
  

• Floods—Flood insurance is typically not included in standard homeowners policies and must be purchased separately through the National Flood Insurance Program (NFIP) or private insurers.
  
  

Vandalism and theft

Unoccupied homes are significantly more vulnerable to vandalism and theft. When a property sits vacant for extended periods, it becomes an easier target for criminals. This vulnerability highlights the importance of adequate security measures and comprehensive home insurance coverage to protect against these potential losses.

Rental vs. non-rental property

The home insurance needs of your secondary home can significantly change depending on whether you plan to rent it out.

• Short-term rental coverage—Platforms like Airbnb® and Vrbo® may have specific home insurance requirements for hosts.
  
  
• Landlord coverage—If you rent out your property, a secondary home policy may not apply, and you may need a separate landlord insurance policy to protect yourself and your property.
  
  

Cost and premiums

Several factors influence the cost of secondary home insurance premiums, making it essential to understand how these factors impact your overall expenses. By understanding how factors like property rebuild cost, location, coverage limits, and deductibles affect your premiums, you can make informed decisions to find the most cost-effective coverage for your needs.

• Property rebuild cost—The more it costs to rebuild your home, the higher the premium will likely be.
  
  
• Location—Properties in high-risk areas (e.g., coastal areas, wildfire zones) will generally have higher premiums.
  
  
• Coverage limits—Higher coverage limits will likely result in higher premiums.
  
  
• Deductible amount—A higher deductible will typically result in lower premiums.
  
  
• Claims history—A history of claims may result in higher premiums.

Working with an experienced insurance agent or insurance provider like Openly can help you customize your coverage to fit your specific needs and budget. Openly offers coverage for secondary or seasonal homes under an HO-5 policy, and coverage for homes rented to others (landlord policies) under an HO-3. Openly’s premium, straightforward home insurance is designed to be tailored to fit your needs, with unique coverages and flexible coverage limits sold exclusively by independent insurance agents.

Finding the right fit for your secondary home

Sourcing adequate insurance for your secondary home should not be an afterthought, but rather an important step in responsible ownership. The unique vulnerabilities associated with these properties, from extended vacancy and location-specific perils to the complexities of rental use, demand a tailored approach that goes beyond standard homeowners insurance. 

By understanding the distinct risks, recognizing potential coverage gaps, and evaluating factors like location, cost to rebuild, and rental status, you can make informed decisions to protect your investment. 

Ultimately, the peace of mind that comes from customizable insurance allows you to fully enjoy the benefits of your second home, creating lasting memories without the worry of unforeseen financial burdens. 

Ready to get started? Request a personalized home insurance quote or find a local independent insurance agent through Openly today to ensure your retreat is properly protected.

FAQs about secondary home homeowners insurance

Q. Is secondary home homeowners insurance more expensive?

• Premiums for secondary homes can vary significantly depending on several factors, including location, property rebuild cost, and the level of coverage selected. In some cases, premiums may be higher than for primary residences due to increased risks associated with vacancy, weather exposure, and potential maintenance neglect.
  
  

Q. Can I add secondary properties to my current homeowners insurance?

• You may be able to add a secondary property to your existing homeowners insurance policy, but that depends on your specific policy or insurance provider.
  
  

Q. Do I need to insure a second home if I only visit occasionally?

• Yes, even if you only visit your second home occasionally, it's highly recommended that you insure it.
  Here's why:

• • Unforeseen events—Even infrequent visits don't eliminate the risk of damage. Natural disasters (fires, floods, hurricanes), theft, vandalism, and other unforeseen events can occur at any time, regardless of your presence.
    
    
  • Vacancy risks—Unoccupied homes are more vulnerable to various issues:
    • Plumbing problems
    • Theft and vandalism
      
      
  • Liability—If someone is injured on your property, you could be held liable for their medical expenses and other damages.
    
    
  • Mortgage requirements—If you have a mortgage on your second home, your lender will likely require you to maintain home insurance.

* We provide this information to help you understand insurance. Any coverage is subject to the terms of your policy. Please refer to your policy and declarations page for complete terms, conditions, exclusions and coverage details. Openly may provide links that lead to an external website that may promote goods and services that Openly does not endorse. We are not responsible for the content, claims, or representations made on the linked website. Please review their terms and policies before engaging with any offerings. Trademarks and logos, including the brand names of products, are the property of their respective owners.