What Is the Best Homeowners Insurance for a Second Home?


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Updated: September 16, 2024

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The best home insurance for a second home depends on your usage of the property. If you use it as a seasonal home and live there for a few months in a year, you need vacation home insurance. If you’re planning to use it as a rental property, it depends on the type of tenants you want to have. If you have long-term tenants, you need landlord insurance, but if you plan to rent it out short-term, a home-share or short-term rental endorsement on an existing homeowners insurance policy is what you need.

Key Takeaways

The best homeowners insurance for second homes is dependent on how you plan to use your property.

Second home insurance is tailored for properties that are used seasonally or left unoccupied for long periods.

Landlord insurance is essential for second homes used as long-term rental properties, while homeshare insurance is an endorsement for short-term rentals, covering the unique risks of temporary guests.

If You’re Using It as a Vacation Home: Second Home or Vacation Home Insurance

Second home insurance, or vacation home insurance, is a specialized policy that protects properties not used as primary residences. It’s best to only plan to live in your second home seasonally or for a limited period throughout the year.

To qualify for this policy, you can't be renting your property out long-term, and it should only be occupied by you or personal guests for short stays. Unlike a traditional homeowners insurance policy, vacation home insurance is one of the best homeowners insurance choices for second homes, as it accounts for the increased risks associated with vacant or infrequently used properties.

Here are the coverages it includes:

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    Dwelling Protection

    This protects the structure of your second home from damage caused by events like fire, wind or vandalism. Because second homes are often vacant for long periods, the insurance must account for increased risks of undetected damage or break-ins, ensuring you're protected against repair and replacement costs.

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    Personal Property Coverage

    The items inside your second home, such as furnishings, appliances and electronics, are protected by this coverage. Since vacation homes may be left unoccupied for months at a time, this coverage helps make sure you're financially protected in the event your belongings are stolen or damaged.

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    Liability Protection

    This covers you if someone is injured while visiting your second home, addressing medical or legal costs that may arise. Liability protection is critical for second homes, which may not be as regularly maintained or supervised, making unexpected injuries more likely once someone comes to visit or use the property.

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SECOND HOME INSURANCE IS TYPICALLY MORE EXPENSIVE

Second home insurance is generally more expensive than standard homeowners insurance due to the increased risks associated with the property being vacant for long periods.

When a home is unoccupied, it is more vulnerable to issues like break-ins, undetected damage and maintenance problems, which raises the likelihood of filing a claim. Additionally, vacation homes are often located in areas prone to natural disasters, such as beachfront or mountainous locations, further contributing to higher premiums.

What Doesn’t Second Home Insurance Cover?

Second home insurance typically doesn’t cover general wear and tear or damages caused by neglect. Understanding these exclusions is crucial to ensuring you know of potential out-of-pocket costs for maintaining your second home.

  • Wear and Tear: General aging and deterioration aren't covered.
  • Neglect: Damage from lack of maintenance is excluded.
  • Mold and Pests: Infestations and mold caused by vacancy aren’t covered.
  • Flood and Earthquake Damage: Separate policies are needed for these risks.
  • Unsecured Property Theft: Items stolen outside the home, such as outdoor furniture, may not be covered.

If You’re Using It as a Long-Term Rental: Rental Property or Landlord Insurance

Landlord insurance is a specialized policy designed to cover rental properties. You would need landlord insurance if you're using your second home as a long-term rental property with tenants living in it for extended periods. Unlike homeowners insurance, landlord insurance covers the unique risks associated with having tenants, such as loss of rental income due to property damage.

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    Dwelling Coverage

    Covers damage to the rental property caused by fire, storms or vandalism, helping you pay for repairs to the property to keep it in good shape for tenants.

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    Liability Coverage

    Protects against legal and medical costs if a tenant or visitor is injured on the property.

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    Loss of Rental Income

    If the rental property becomes uninhabitable due to a covered event, this coverage compensates you for the lost rental income during repairs.

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    Property Maintenance Coverage

    Covers damages to appliances or systems in the rental property, such as washing machines or lawn mowers, helping to ensure you're not burdened with unexpected repair costs from tenant use.

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    Other Structures

    Protects detached structures on the rental property, such as garages or sheds, offering peace of mind that all parts of the property are insured.

What Doesn’t Landlord Insurance Cover?

Landlord insurance typically doesn’t cover tenant property or damage caused by routine wear and tear. Additionally, intentional damage by tenants or issues arising from poor property maintenance are often excluded. Knowing what isn’t covered helps landlords avoid unexpected costs and maintain their rental property effectively.

  • Tenant’s Personal Property: Tenant belongings aren’t covered under the landlord’s policy.
  • Wear and Tear: Normal aging and routine maintenance issues are excluded.
  • Intentional Damage by Tenants: Damage caused deliberately by tenants isn't covered.
  • Maintenance Issues: Problems like plumbing or electrical failures due to neglect aren’t included.
  • Flood and Earthquake Damage: Requires separate policies for coverage.

If You’re Using It as a Short-Term Rental: Home-Share or Short-Term Rental Property Insurance

Short-term rental property insurance, also known as home-share insurance, provides coverage when you rent out your property for short stays. It can be sold as an endorsement to your existing homeowners insurance policy or as a standalone by companies who offer it. This type of coverage is essential for homeowners who rent their properties on platforms like Airbnb or VRBO, where guests stay for a few days or weeks at a time.

While home-sharing companies may provide free insurance for their hosts, it is often less comprehensive, so purchasing short-term rental property insurance is better for more coverage.

What Doesn’t Home-Share Insurance Cover?

Home-share insurance typically doesn’t cover general wear and tear or issues caused by poor maintenance of the property. Additionally, damage caused by guests staying longer than the agreed rental period or any personal property of the guests is not included. Understanding these exclusions is crucial for fully protecting your property during short-term rentals.

  • Guest’s Personal Property: Damage or theft of items belonging to guests isn’t included.
  • Extended Stay Damages: Damages caused by guests staying beyond the agreed rental period are excluded.
  • Neglect or Maintenance Issues: Problems arising from lack of property upkeep are not covered.
  • Flood and Earthquake Damage: Separate policies are required for these types of natural disasters.

Why Is Homeowners Insurance for a Second Home Different?

You typically cannot get standard homeowners insurance for a second home due to the unique risks associated with part-time occupancy. Insurers view second homes as more vulnerable to issues like theft, undetected damage or lack of maintenance. As a result, second-home insurance policies are designed specifically to address these risks, often with higher premiums and specialized coverage.

FAQ About Second Home Insurance

When it comes to finding the best homeowners insurance for a second home, many homeowners have questions about what coverage to get for their unique situation. Below are some common questions and concise answers to clarify the key aspects of second home insurance.

Can I use my existing homeowners insurance for my second home?
What type of insurance do I need for a vacation home?
What type of insurance is best for renting out my second home long-term?
What if I only rent my second home occasionally?
Is second home insurance more expensive than regular homeowners insurance?

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About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.