What to Know About Insuring a Vacation Home

Just as with any residence, your vacation home must have adequate protection, but since the risks are different, the coverage might cost more than your primary Homeowners Insurance policy. It is important to be aware of the factors that will likely affect premiums. Second homes provide a respite from weekday life, and may even be a good investment. They also, however, present more of an insurance risk than your primary residence. Not physically occupying your second home as frequently puts it in more danger for theft, vandalism and easily undetected damage, like burst water pipes. While the homeowners policy for your second home will provide the same types of coverage as your primary homeowners policy, the factors that impact the costs are really what differs.


Location is always a factor in homeowners insurance costs. For instance, additional insurance is needed if your dwelling is in a flood- or earthquake-prone area. With vacation homes, the very location that makes a place desirable may also make it more expensive to insure. Take a ski house or hunting lodge in a remote or mountainous area for example, these are at greater risk for damage due to wildfire. A beach house may be more exposed to wind damage or storm surges from a hurricane. These location-based risks will impact the price of coverage, and in some cases may even incur higher deductibles.

Type of Property

As with any house, the age and type of building materials used in a vacation home will impact the cost of insurance. What’s also important is whether your second home is a single-occupancy house, a condominium or a townhouse. A condominium in a ski resort area may have lower insurance costs than a stand-alone chalet since a homeowners association maintains the property and may provide security. Plus, the association insures the exterior of the property.


Though wonderful for relaxation, pools and hot tubs add risk to your second home. If your vacation residence is equipped with these or other special amenities, you may pay a higher insurance premium and should also consider additional liability protection.

Ways to Save

Your homeowners insurance agent can help create a plan to make the cost of insurance more affordable. Consider the following:

Choose a location with less risk

A home further from the beach won’t be as susceptible to storm surges, for instance.

Bundle your policies

If you insure your second home with the same insurer that provides coverage for your primary residence, you may be able to save on premiums.

Install an alarm system

A centrally monitored alarm system that detects both fire and break-ins can help lower the cost of insurance.

Renting out your property

If you plan to rent your vacation home to others, your homeowners insurance costs will likely increase, and you may need to purchase additional coverage. Renting your second home entails additional, more complex risks, it’s smart to consult with your homeowners insurance agent and learn more about coverage for renting out your home so you don’t increase your exposures unknowingly.

About Transparity Insurance Services

Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.