Homeowners Insurance For Second Homes

If you are in the process of considering the purchase of a secondary residence, then we want to be the first to say congratulations! It’s an impressive feat to own not only one home, but a second home where you and your family can get away for a weekend, a few weeks, or a few months at a time. You might even use that second home regularly and swap out “homes” as frequently as every other week. The possibilities are simply endless, and there’s dozens of reasons why a family might choose to invest in an additional property.

As with your original property, however, there is the matter of protecting this secondary property through the purchase of insurance. Now, home insurance is not regulated nor mandated in the province of Ontario, making this purchase an added expense but it’s still highly recommended – and may be necessary if that second home still has an ongoing mortgage.

In this article, we go over the various ins and outs that you need to know as a property owner for the second time, how to insure your second home, and what you need to know about protecting a home that isn’t considered your primary residence.

Insuring a Second Property – Dos, Don’ts, & How

You can technically insure both of your properties with a home insurance policy. Some insurance policies will extend to cover a second property, meaning that you can insure both of your residences through a single policy. This is convenient, less expensive, and simply more accessible than insuring your secondary property through a standalone policy.

However, not all insurers will offer this benefit, and a secondary property insurance policy may be deemed necessary. It also depends on the usage of said secondary property, and where that is located. A second home has its own definition by insurance standards, and that is “a house/condo that you live in for a portion of the year, but less than your primary place of residence. It may be a vacation home but could also be a place to carry out business activities.”

In order to qualify for a standalone secondary home insurance, your secondary property needs to be in a tourist region, a vacation spot, or a significant distance away from your primary residence.

Do Not…

Do not expect a secondary property insurance policy to contain the same level of coverage as your primary home policy. It is assumed that you won’t live in your secondary home year-round, and may only cover specific perils, such as burglary and vandalism, lightning, explosions, flooding, and fire/smoke damage. A basic policy will only cover property damage and theft and would not include some major issues that could result from natural disasters.

Also, do not expect anything not listed on your policy to be covered. It tends to be that property insurance policies on second homes will only cover perils on a named perils basis, meaning that anything listed will be covered, but items not listed will not be.

Do…

Do expect to pay more on your secondary property insurance than your standard primary residence’s insurance. Since many secondary properties, also known as vacation homes, may be occupied far less than your primary residence, be located further from emergency services, and can often be located near large bodies of water, they tend to be viewed as more vulnerable and can therefore be charged more.

A beachfront property is especially more expensive to be insured, since it tends to be of higher value and is also at higher chance of flooding and hurricanes. Therefore, they are more expensive for insurance companies to cover if a claim should occur.

The Difference Between a Secondary Property & Seasonal Property

Your insurance company has to define the difference between a secondary property and seasonal property to ensure it can categorize them separately for insurance purposes. There are two categories by which to define a vacation home. A secondary home is a property you reside in only for a short period of time out of the year, but a seasonal home is a property you stay in for much longer stretches – at certain times of the year, like during the holiday season and summer.

The costs between both policies may differ greatly, and the type of coverage offered may also differ. The definition differences can impact the end price you’ll pay for your insurance coverage. We advise working with an Excalibur broker to get the best coverage and price for your property.

The types of vacation homes that your insurance company may insure include:

• Cabins
• Lake houses
• Cottages
• Beach homes

Your vacation home could be at a lake, on a beach, in a cabin in the woods – it doesn’t really matter. Comprehensive property insurance for your secondary or seasonal property is critical.

Do Get a Quote with Excalibur Insurance

Ultimately, the best way to ensure sufficient protection is to get a quote with Excalibur Insurance. If you need us, we’re there. Insurance is all about protecting you and your way of life, and we believe that your secondary property is integral to you and your family, and how you occupy your time off. Let our family look after yours and help you out if you ever find yourself in a jam.

Get a free quote with us or give us a call today and an Excalibur Defender will connect with you to design a comprehensive secondary home insurance policy.