If you’re thinking about investing in a vacation home or other type of second home, it’s important to include obtaining the right insurance coverage in the planning process. Just as you protect your primary home, it’s crucial to insurance that your second home is covered with adequate insurance, whether it’s a cottage on Lake Winnipesaukee or a cabin in Northern New Hampshire.
Second Home Insurance Coverage Options
When it comes to purchasing a vacation home or other type of second home, your lender will typically require you to purchase hazard insurance at the very least to protect your property against damage caused by fires, theft, or severe storms. It’s also wise to add liability insurance coverage to protect you and members of your household in the event that a visitor is accidentally injured. Securing both of these types of coverage adds up to a standard homeowners insurance policy. Beyond that, you have the option to obtain an umbrella policy, which would provide you with additional liability insurance coverage.
Vacation Home Insurance Cost Considerations
Regardless of whether your second home is used for you and your family privately or shared as a rental, it typically costs more to insure than your primary residence. This is because premiums are based on a variety of factors, including the amount of time your second home will be unoccupied and where it is located. In many cases, the qualities that attracted you to your second home, such as the extraordinary mountain views or the spectacular sunsets over the ocean, are the same aspects that can make it more costly to insure. Your home’s location, as well as its risk of hurricane, wildfire, or flooding, can all influence its coverage costs.
However, just as there are many ways to lower the cost of your homeowners insurance for your primary residence, you can typically reduce your vacation home insurance rates by raising your deductible, investing in a security system, installing deadbolt locks, and/or opting for an automatic payment method. It’s also a good idea to ask your agent about multi-policy discounts, as insuring your second home with the same company as your primary residence and perhaps your vehicles, can sometimes score you significant savings.
If you’re planning to purchase a second home, rely on an independent insurance agent, who will take the time to learn about your home’s unique exposures and custom design coverage that will fully protect it. At Eaton & Berube, we’ve been protecting all types of second homes, including vacation homes, cottages, camps, and cabins for more than 70 years. Located in Nashua, our agents are pleased to provide second home insurance throughout New Hampshire, from multi-unit apartment buildings in Manchester, to single-family vacation homes on Lake Sunapee.
To learn more about vacation home insurance in New Hampshire, or coverage for any type of second home in which you’re investing, and to get a quote, give us a call today at 603-882-2766 or submit our online quote request form.