Tips on how to find the right insurance for your second property.
People buy second homes for a variety of reasons. Some want a vacation home where they like to visit yearly or even several times a year. Others invest in a property as a second source of income. Unfortunately, a second home comes with risks that a main residence does not. For this reason, it’s important you have the right kind of insurance policy.
If you already have a homeowners insurance policy for the home you currently live in, it’s a good idea to find out whether your policy can cover a second home. However, your insurer may require you to get separate cover, such as landlord insurance if you are going to be renting it out.
The amount of coverage you will need for your second home will depend on a few different things, including the way that the home will be used. If you’re going to be renting it out, you might need a more comprehensive insurance policy. As a general rule, you want to cover what it would cost to replace this home entirely if it is damaged while inhabited by tenants or a natural disaster. You could also consider getting loss of rental insurance, which covers the loss of rental income following a catastrophe or serious incident.
You may need to purchase a separate homeowners insurance policy for your second home. Generally, second homes are riskier to insure, especially if they are going to be vacant for a large portion of the year or they’re in areas that are prone to natural disasters (such as sea front properties). As a result, you may pay more for your second home insurance than you do your primary residence insurance. Keep in mind that there are ways to lower this price, such as installing a security system.
Are you ready to secure suitable homeowners insurance for your second property? The team at Tompkins Insurance Agencies can help you find the right coverage and rates for your needs. Contact us today.