Factors that Affect the Cost of Insuring Your Second Home

Factors that Affect the Cost of Insuring Your Second Home


Find out what makes insuring a second home so expensive.

Despite what you might think, securing the right homeowners insurance in Astoria, New York for a second home is not as simple as getting coverage for your primary residence.  This is largely due to the fact that secondary homes usually serve different purposes than a primary home.  Additionally, insurance providers generally view second homes as more risky to insure for a variety of reasons.  This increased risk naturally translates into higher insurance costs for the homeowner.  But which factors affect the cost of your home insurance most significantly?  Here are some of the things that influence the cost of insuring your second home.

Your Second Home is a Vacation Spot

Popular vacation spots are often on the coast, near a lake, or close by other bodies of water.  While beautiful locations for a second home, properties located near bodies of water are at a higher risk for flooding.  As a standard homeowners insurance policy will not cover the damages caused by flooding, you will need a separate policy to protect against this risk.  Additionally, coastal homes are also at a higher risk for hurricane and major storm damage.  While a standard policy will offer some coverage for these damages, you will likely have higher insurance premiums to make up for your increased risk.  If your second home is located in the mountains, then you face increased risk for mudslides and landslides.  Neither of these threats are covered by standard insurance, so you will have to secure specialty insurance to ensure that you have the protection that you need.

Your Second Home is Vacant

When your home is uninhabited for a portion of the year, this is a cause for concern for insurers.  This is because damage can occur and worsen without the homeowners even realizing it.  Most standard home insurance policies require that a home is not unoccupied for more than 30 days at a time.  So, to get the protection you need for a vacant home, you may need to add an endorsement to your policy.  This increased coverage will naturally increase your insurance rates.

Your Second Home is a Rental

If you rent out your second home, even if it is only for a portion of the year, then your insurer might consider this a business transaction.  This means that your personal policy will not cover any of the issues that arise when your home is being rented out.  You may have to secure a landlord policy to ensure that you have the coverage that you need.  Unfortunately, these policies generally cost 10-20% more than standard insurance policies, so expect this to increase your insurance costs significantly.

These are some of the factors that will increase the cost of insuring your second home.  Do you have additional questions regarding your homeowners insurance in Astoria, New York?  Then don’t hesitate to turn to the experts at 01 Insurance.  Our dedicated team is ready to assist you with all your coverage needs today.