Insurance Basics: Everything You Need to Know

Home Insurance For Primary And Secondary Residences: Common Faqs

Some Americans own more than one home. Whether that secondary residence is used for vacation purposes or otherwise, it is ever-important to make sure the property has the proper insurance for protection. Here is a quick look at some of the general questions you may have about getting home insurance for primary and secondary residences. 

Should you carry the same levels of coverage for primary and secondary residences?

Most insurance agents will recommend that you carry a similar policy for your secondary residence as what you have for your primary residence. However, the risks associated with each property also have to be considered. For example, if your secondary home is more at risk of sustaining wind damage because it is in a hurricane zone, you would need to consider upping coverage levels for this specific type of risk

What if your secondary residence is in another state?

If your secondary residence is in a state other than your primary residence, it can bring about a few complexities. Insurance requirements for homes can vary depending on the state, which means simply obtaining a duplicate policy for the second residence may not always work or be the best plan of action. It is better to work with the home insurance agent to build an adequate coverage plan for the house outside of your primary state of residence. 

Will secondary residence insurance be effective if you rent out the property?

If you use your secondary residence as a rental property when it is not in use by you, it is best to look at getting specific coverage for rental properties. While your basic insurance for the secondary residence may deliver some levels of protection, technically, you have more liability concerns with people temporarily dwelling in your second home. 

Doesn't your standard home insurance cover additional buildings?

This is actually one of the biggest myths about insuring a second residence, and it can lead to major losses for property owners. The confusion comes in with the fact that some homeowners insurance policies can extend coverage to your personal belongings even if they are temporarily housed in another location, such as a storage unit or a second home. What this means is that if something like a fire at the second residence occurs, your personal belongings inside the house may be covered. But the damage to the structure itself would not be covered.

Contact a provider of insurance like Bear River home insurance to learn more.