What is second or vacation home insurance?
Vacation or secondary home insurance is financial protection in the event your vacation home gets damaged by a covered peril, like a fire or windstorm. This includes insurance coverage for cottages, lake houses, mountain cabins, coastal properties, and more. Secondary home insurance contains the same six basic coverages as primary home insurance.
Learn more >> What does home insurance cover?
What’s the difference between primary and vacation home insurance?
The main difference between primary and vacation home protection is that insurance for secondary homes typically costs more. That’s because vacation homes are empty throughout much of the year and face a higher risk of insurance claims than primary homes.
That being said, if you have a clean claims history, decent credit, and a security system, you should be able to find an insurance company to insure your property at a rate that works for you.
Best homeowners insurance for second homes
Many large insurance companies offer second home insurance — also known as seasonal dwelling policies. Here are our top picks for the best homeowners insurance for second homes.
2024 Policygenius award winner
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Along with saving around 20% when you bundle your home and car insurance, Farmers also gives you access to its extensive suite of discounts, unique policy credits, and claim-free incentives that help put money back in your pocket.
Pros and cons
Pros
Above-average property claims satisfaction rating with J.D. Power
Extended and guaranteed replacement cost for your home
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s digital experience survey
More details
Landlords with multiple rental units may benefit from SmartMove, a service Farmers offers that allows them to screen potential tenants with just an email address.
2024 Policygenius award winner
Allstate
4.4
Bundle home & auto
Smart home discounts
All 50 states
Why we chose it
Whether you’re looking for bare-bones coverage on the cheap or a more comprehensive policy package with additional coverages and features like short-term rental coverage and deductible rewards, you’ll likely be able to find it with Allstate.
Pros and cons
Pros
High-quality and flexible policy options
Numerous discounts and features that help you save
Below-average customer complaints
Cons
No longer sells home insurance policies in California
Below-average digital experience rating with J.D. Power
More details
Why Allstate is our top pick for Airbnbs
If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.
And the best part? This coverage can be added directly onto your home insurance policy for a small additional fee. To put this into context, only about one-third of the nearly 70 home insurance companies we reviewed even offer home-sharing coverage at all.
How much does Allstate home insurance cost?
The national average cost of home insurance with Allstate $1,650 per year, according to sample quotes provided to Policygenius from Quadrant Information Services. This makes Allstate about 13% cheaper than the national average.
State availability
Allstate offers home insurance policies in 49 states and Washington, D.C.
The Hartford
4.6
Why we chose it
The Hartford’s partnership with AARP makes it an excellent home insurance option for homeowners who are already AARP members. There are no age restrictions on AARP membership, though their benefits are aimed mainly at people over 50.
Pros and cons
Pros
High ratings for financial stability, customer service, and coverage options
Mobile app makes it easy to report and track claims, view digital ID cards, and update your policy
Disappearing deductible program if you go three years without filing a claim
Cons
Must be an AARP member to purchase a policy
Rates are 27% higher than the national average
Not available in all 50 states
Methodology
Methodology & why you can trust our top picks
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the best insurance companies for vacation homes, we looked at AM Best financial ratings, quality of policy options, number of discounts, and JD Power customer ratings.
How much does second home insurance cost?
Standard homeowners insurance for a full-time residence costs an average of $1,754 per year, but you can expect to pay more for a second home insurance policy. For example, American Family estimates that vacation home policies are typically two to three times more expensive than home insurance for full-time residences.
The agents at Policygenius can help you compare quotes from multiple insurers who cater to seasonal homes to make sure you’re getting the best rate and coverage available.
Why is second home insurance more expensive?
Second home insurance is typically more expensive because insurers believe you're more likely to file a claim due to your home being unoccupied for some of the year or being close to high-risk flooding or wildfire areas depending on where it’s located.
3 factors that affect secondary home insurance rates
How often you use your vacation home, where it is, and features of your home all affect how much you pay in premiums each year.
1. How often your vacation home is occupied
Most second homes are used as vacation homes, which means they’re typically empty for part of the year. For insurance companies, the home’s vacancy is a risk, and they’ll charge you higher rates based on that factor alone.
There’s a few reasons for this:
They’re more likely to have hazards (like leaks, fires, or infestations) go undetected
They’re more likely to be vandalized
They’re more likely to have liability issues if the home isn’t properly secured
2. Where your vacation home is located
If your vacation home is located on the coast or in an area prone to wildfires, you can expect to pay more for the added risk of filing a claim due to windstorms, wildfires, or other natural disasters.
3. Features of your vacation homes
Whether your vacation home is a mobile or manufactured home, tiny house, historic home, or log cabin will all affect rates. Certain amenities that you have for your vacation home, like a hot tub, trampoline, sauna, or pool, can also cause your insurance rates to go up since they can increase your liability risk.
Do I need to buy homeowners insurance for my second home?
Yes, you will need a separate insurance policy for your second home because two homes typically cannot be covered by the same insurance policy. Also, if you have a mortgage on your second home, your lender will likely require you to have home insurance on the residence until your loan is paid off.
Even if you paid off your mortgage, you should still get vacation home insurance — forgoing it would mean you’re on the hook to pay to rebuild your home or replace your belongings in the event of a burglary, fire, windstorm, or other type of disaster.
You’d also be going without personal liability coverage — meaning if a guest gets hurt and sues you, you risk losing your savings, investments, and other financial assets in court.
6 steps to buying second home insurance
Here are six steps to take when shopping for secondary home insurance.
Figure out how much coverage you need. How much dwelling coverage you need will depend on the replacement cost of your vacation home, meaning the amount it would cost to rebuild your home from the ground up. You should also consider how much personal property and liability coverage you need.
Ask about additional coverage you may need. Is your secondary home located in a coastal beach town? You may need windstorm insurance and flood insurance. Do you rent out your second home? You may need landlord insurance or short-term rental coverage.
Gather information about your vacation home. You’ll want to provide your insurer with as much information about your home as possible so that you get an accurate quote. Knowing an estimate of your home’s replacement cost and the full value of your personal belongings is a good start. Also knowing your home’s age, square footage, age of its roof, renovation history, and proximity to a fire department can all be helpful.
Look into bundling your vacation and primary home insurance. You may be able to save money on your insurance by bundling your insurance policies together with the same insurance company. Talk to your insurer about any bundling discounts they may offer for people who own more than one property.
Compare vacation home insurance quotes. Experts recommend that you compare quotes from at least three different insurance companies before choosing a policy to make sure you’re not missing out on a better deal elsewhere. The agents at Policygenius can help you compare quotes from multiple insurers to find you the best coverage at the most affordable price.
Finalize your policy details. Once you’ve made a decision on which policy you want to go with, you’ll need to finalize your coverage amounts, add-ons, deductibles, discounts you qualify for, and more.
Homeowners insurance if your rent out your second home
If you plan to rent out your secondary home when you’re not there, your insurer will likely increase your rates or require you to add short-term rental coverage to your homeowners policy. Certain rental services like Airbnb offer their own insurance, but it’s not sufficient on its own.
If you plan to rent out your vacation home for long periods of time, you’ll need to get a landlord insurance policy, which is standard for any rental property.
How to save on second home insurance
Insurance companies offer many of the same discounts for second homes as they do for primary residences, including discounts if you:
Install security cameras and fortify your property
Install risk-prevention systems, like water leak sensors
Equip your home with a central burglar alarm or smoke detector
Bundle your primary residence insurance and secondary home insurance under one policy package
Buy a vacation home that’s part of an HOA community
Re-shop your homeowners insurance policy on an annual basis — our Policygenius agents can help you do this to make sure you're getting the best deal possible
