What Is the Best Homeowners Insurance for a Second Home?

The best home insurance for a second home depends on your usage of the property. If you use it as a seasonal home and live there for a few months in a year, you need vacation home insurance. If you’re planning to use it as a rental property, it depends on the type of tenants you want to have. If you have long-term tenants, you need landlord insurance, but if you plan to rent it out short-term, a home-share or short-term rental endorsement on an existing homeowners insurance policy is what you need.

Second home insurance, or vacation home insurance, is a specialized policy that protects properties not used as primary residences. It’s best to only plan to live in your second home seasonally or for a limited period throughout the year.

To qualify for this policy, you can't be renting your property out long-term, and it should only be occupied by you or personal guests for short stays. Unlike a traditional homeowners insurance policy, vacation home insurance is one of the best homeowners insurance choices for second homes, as it accounts for the increased risks associated with vacant or infrequently used properties.

Here are the coverages it includes:

Second home insurance typically doesn’t cover general wear and tear or damage caused by neglect. Understanding these exclusions is crucial to ensuring you know of potential out-of-pocket costs for maintaining your second home.

• Wear and Tear: General aging and deterioration aren't covered.
• Neglect: Damage from lack of maintenance is excluded.
• Mold and Pests: Infestations and mold caused by vacancy aren’t covered.
• Flood and Earthquake Damage: Separate policies are needed for these risks.
• Unsecured Property Theft: Items stolen outside the home, such as outdoor furniture, may not be covered.

Landlord insurance is a specialized policy designed to cover rental properties. You would need landlord insurance if you're using your second home as a long-term rental property with tenants living in it for extended periods. Unlike homeowners insurance, landlord insurance covers the unique risks associated with having tenants, such as loss of rental income due to property damage.

Landlord insurance typically doesn’t cover tenant property or damage caused by routine wear and tear. Additionally, intentional damage by tenants or issues arising from poor property maintenance are often excluded. Knowing what isn’t covered helps landlords avoid unexpected costs and maintain their rental property effectively.

• Tenant’s Personal Property: Tenant belongings aren’t covered under the landlord’s policy.
• Wear and Tear: Normal aging and routine maintenance issues are excluded.
• Intentional Damage by Tenants: Damage caused deliberately by tenants isn't covered.
• Maintenance Issues: Problems like plumbing or electrical failures due to neglect aren’t included.
• Flood and Earthquake Damage: Requires separate policies for coverage.

Short-term rental property insurance, also known as home-share insurance, provides coverage when you rent out your property for short stays. It can be sold as an endorsement to your existing homeowners insurance policy or as a standalone by companies who offer it. This type of coverage is essential for homeowners who rent their properties on platforms like Airbnb or Vrbo, where guests stay for a few days or weeks at a time.

While home-sharing companies may provide free insurance for their hosts, it is often less comprehensive, so purchasing short-term rental property insurance is better for more coverage.

Home-share insurance typically doesn’t cover general wear and tear or issues caused by poor maintenance of the property. Additionally, damage caused by guests staying longer than the agreed rental period or any personal property of the guests is not included. Understanding these exclusions is crucial for fully protecting your property during short-term rentals.

• Guest’s Personal Property: Damage or theft of items belonging to guests isn’t included.
• Extended Stay Damage: Damage caused by guests staying beyond the agreed rental period are excluded.
• Neglect or Maintenance Issues: Problems arising from lack of property upkeep are not covered.
• Flood and Earthquake Damage: Separate policies are required for these types of natural disasters.

You typically cannot get standard homeowners insurance for a second home due to the unique risks associated with part-time occupancy. Insurers view second homes as more vulnerable to issues like theft, undetected damage or lack of maintenance. As a result, second-home insurance policies are designed specifically to address these risks, often with higher premiums and specialized coverage.

When it comes to finding the best homeowners insurance for a second home, many homeowners have questions about what coverage to get for their unique situation. Below are some common questions and concise answers to clarify the key aspects of second home insurance.