Seasonal Home Owners
Like any residence, a vacation home needs to be insured, but because the risks are different the coverage may cost more than your primary homeowners policy. Before you jump into second home ownership, consider the factors that will likely affect the cost you’ll need to pay for insuring it.
Some key factors that can impact vacation home insurance costs:
Location is always a factor in homeowners insurance costs.
For example, you need additional insurance if your dwelling
is in a flood. With vacation homes, the very location that makes
a place desirable may also make it more expensive to insure.
For instance, a ski house or hunting lodge in a remote or
mountainous area could be at greater risk for damage due to
wildfire. A beach house may be more exposed to wind damage
or storm surge from a hurricane. These location based risks
will impact the price of coverage, and in some cases may
even require 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, for instance, may have lower insurance costs than a stand-alone chalet. This is because a homeowners association maintains the property, and may provide some security. Importantly, the association insures the exterior of the property (the cost of is generally included in the monthly maintenance fees). Your personal condo insurance will cover the specific areas of the unit listed in the policy, as well as your belongings. Amenities. 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 you should also consider additional liability protection, which will increase insurance costs, as well.