Owning a second home can be a good investment as well as a great luxury - especially if you use it as your vacation home. However, before you begin looking for a second home to invest in, you should be aware that insurance for a second home is going to be a little different than insuring your first home. The following are a few things you should know about purchasing insurance for a second home:
- Location - The location of your second home can raise the cost of coverage due to the fact that most people leave their second homes unoccupied for long periods of time, which means there's more of a risk that something will happen to it. For example, if you have a second home on the beach, it could be more exposed to wind damage or a storm surge that you won't be able to take care of immediately since you may not be there.
- Amenities - If your second home has amenities such as a pool or hot tub, then you're adding risk to your property. You won't be able to overlook its safety when you're away, resulting in higher premiums. You may also need to purchase more liability insurance since these amenities are often considered attractive nuisances.
- Renting - If you are going to rent out your second home, insurance coverage will increase. You may need additional business coverage or a landlord policy.