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Mistakes to Avoid When Buying Home Insurance for Two Homes

Mistakes to Avoid When Buying Home Insurance for Two Homes

Mar 09, 2023

Home Insurance

We all have a favorite vacation destination. Having a home in such a place is something we all dream of. If you are fortunate enough to own a vacation home, you must know how to keep it safe by getting it properly insured.

Secondary Home Insurance Essentials

Homeowners of two homes must remember that you cannot buy single home insurance for both your homes. You need separate insurance coverage for your new home as the risk factors for your secondary home may not be the same as that of your primary residence. Secondary home coverage also known as seasonal home insurance may vary from one insurance provider to another. You must consult your insurer to learn about the type and extent of coverage you may need.

Home Insurance Coverage for Your Summer Home by the Water

Seasonal homes near a water body such as the coastal areas or by a lake or river come with their own set of risks. The most significant risk may be damage to your home by flooding. Buying a separate flood policy can provide that much-needed security to your home.

Also, if your home is along the coast, it is highly prone to damage by high winds. So, you may have to pay a higher deductible for your hurricane coverage.

Things You Should Know About Cabin Insurance

Seasonal home insurance is also referred to as cabin insurance. If you own a holiday cabin, this coverage can protect it from a wide range of perils such as:

  • Fire
  • Theft and vandalism
  • Wind, rain, and lightning
  • Liability coverage for third-party bodily injuries or property damage

The location and type of cabin may determine the kind of insurance coverage you need. For the best coverage options, you must talk to your insurance provider.

Get Umbrella Coverage for Added Protection

If you have multiple properties, getting umbrella insurance ensures additional protection. Besides increasing the limit of your personal liability coverage, it may also cover perils that are not included in your home and auto insurance. It covers:

  • Lawsuits
  • Bodily harm to others
  • Damage to other’s property
  • Legal costs

Coverage for Guests and Tenants for Second Home

With your house staying vacant for most of the year, you may allow your friends to use it in your absence. For damages to your home in such a scenario, you must discuss with your insurer the coverage you need to keep your home protected. However, if you lease your home to renters or as a holiday home for tourists, you may need higher specialized coverage.

Other Important Coverages That You May Need

Some coverages that you may overlook but are important for the comprehensive coverage of your home include:

  • Vandalism
  • Underground utility lines
  • Equipment breakdown

Enjoy Savings on Multiple Policies

To reduce your personal insurance costs, you may:

  • Bundle your insurance coverages by buying them from the same insurer
  • Lower the coverage limits of the secondary home if the property has limited assets
  • Install safety features in your new home to lower risks

Protect Your Homes with Kneller Insurance

If you want to learn more about your homeowners insurance policy and avoid these common mistakes, contact our team today. At Kneller Insurance Agency, we can help you get the right coverage tailored to suit your unique needs.

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