Ward, Hayden

What to Know About Insuring a Second Home

Cabin home in mountains

There’s a lot to be said about purchasing a second home, often known as a vacation home, at your dream destination. It offers a chance to escape the everyday life and to enjoy a different scenery. However, owning a vacation home requires a different type of home insurance.

Do I Need a Separate Insurance Policy for My Second Home?

Any property that is not your primary residence and is for your personal use needs to be insured appropriately. Second homes tend to be a “home away from home” and typically will need a separate insurance policy to protect its contents and structure. Many times, if there is a mortgage involved, your lender will require you to insure it. Second home insurance covers your vacation property and the liabilities that come with it. They also tend to be vacant when not in use, and if there is damage, it needs to be covered.

What Is Second Home Insurance?

Second home insurance is a policy for an additional home(s) that you are in and out of but do not rent out. It is not a primary residence. A lot of the time, second homes are referred to as vacation houses. In terms of cost and coverage, second homes are deemed “riskier” than your primary residence for a few different reasons.

  • Increase of threats due to not living there full time
  • Location of the house (e.g., waterfront, on a mountain)

Usually what makes the vacation home so appealing is what makes it a little risky.

Insurance for these types of properties are normally written on a named perils basis. This simply means your second home would only be covered against the events that are specifically outlined in the policy. A good example of this would be burglary or fires. If the peril isn’t listed in the policy, then it likely wouldn’t be covered.

The reason why these policies are typically written on a perils basis is because a second home is normally not as occupied as often as your primary home, and you may not keep valuable items there year long.

What If I Rent Out My Vacation Home?

If you rent out your second home for part of the year, homeowners and second home insurance likely will not cover the damage that occurs when renting. You will need vacation rental insurance for one simple fact — short-term rentals are considered a business activity, and homeowners/second home insurance usually excludes business-related claims. Once money changes hands between you and a guest staying on your property, your homeowners or second home insurance may not cover you the way you need it to.

Protection for Your Home Away From Home

We’re expanding our coverage to not only cover your business but your second home, long-term rental and vacant property. Protect yourself, your vacation home and your peace of mind with coverage that leaves nothing to chance. Begin your free quote today!

lawn chairs on dock with forest in the background

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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About Us

CBIZ Vacation Rental Insurance, a division of CBIZ Insurance Services,Inc., is the largest insurer of short-term vacation rental properties in the United States. As part of an $850 million New York Stock Exchange traded company (CBZ), we are the first broker to develop specific policy coverage to meet the needs for vacation rental properties and the amenities offered by these businesses. We have insured vacation rental properties since 2002.

The CBIZ Vacation Rental Insurance team knows insurance, specifically the risks and exposures related to short-term vacation rentals.We won't confuse you with technical "insurance speak" ~ our representatives are well versed in explaining your coverage in plain English. With hands-on, personal customer service, we guarantee swift communication and a 24/7 claims team that is ready to respond to your call any time of the day. As specialist in the industry, we leverage our knowledge and passion to ensure you and your business are adequately protected.