Anybody who has ever purchased a home knows the importance of good homeowners insurance. If you’re thinking about expanding your homeownership to a second property, then you’re likely already aware that you will have to insure that as well. But the process and policies are not going to be as straightforward as they are for your primary residence.
Let’s go over a few important things you should know before you begin the process of buying and insuring your second home.
1) Typically, most homeowners insurance policies won’t cover claims made on a vacant or unoccupied property.
This is because these properties are seen as higher risks for incidents like burglary, vandalism, and incidents like fires and flooding. Since no one is there to deter criminals or quickly respond in emergency situations, damage is likely to be more extensive. The threshold for when most insurance policies start denying claims is about 30 days of vacancy/no occupancy.
2) Location will affect your second home insurance premium.
Second properties are often used as vacation homes, additional income sources, and retirement homes. It makes sense, therefore, that you’d want something in a desirable location. For many, the draw of a location is in its climate. Unfortunately, these desirable climates often drive up the price on your homeowners insurance premium/policy.
There is a greater risk of damage due to weather in hot spots like Florida (hurricanes, flooding), mountainous areas (wildfire, wildlife), and ski country (snow, ice), which makes insurance premiums higher. This is something to keep in mind when searching for and purchasing a second home.
3) There are measures you can take to reduce insurance costs.
While there’s no getting around the fact that you’ll need insurance for your second home, there are a few ways you may be able to get a lower price. The first is choosing your policy wisely. You should shop around for quotes and, if you can, bundling with your other insurance policies can save you some money.
Another thing you can do to reduce your premium is have safety measures in place that reduce some of the risk of damage to your home. For instance, installing fire alarms, a security system, natural disaster barriers, and hiring a house sitting service to do check ins will make your property safer.
If you’re looking at second homes in or around Phoenix, AZ, Dreamweaver Concierge can help make your property more secure—for the sake of you and your insurance company. Our white-glove house sitting services include comprehensive property checks to make sure everything is in good condition and working order in your absence.
Get in touch with us today, so you can rest easy knowing your home is in good hands!