If you are looking for second home insurance, chances are you are going to pay more for it than you did the first home. Why? Because you are simply not there as much, and there is a higher risk for theft, vandalism, or other problems. There are ways you can get the best rates available and maybe some discounts on the insurance for you second home.
First of all, adding a central alarm that can detect both fire and burglaries can easily cut about 20% off the premium. A basic alarm system may cost about $300 with installation, but depends on how many zones and sensors you have in the system. You can also expect to pay $75 or more every year for the service.
If you own a home in a gated community you could get another discount. Homes in rural areas, with proof that the fire department has easy access to a water source can also give you a discount…sometimes up to 25%. Although you won’t get a discount for hiring someone to be a caretaker of your home and property, having one may be able to convince insurance companies that you’re worth the risk.
Another tip for getting the best rates is to combine policies. Revisit the agent whom you got your original coverage from and see if you can get a discount by adding the second home. Usually you can save between 5-10% by getting a package policy. This package can even include your automobile, liability coverage and a boat.
Buying a condo instead gives you some different issues to deal with. The condo association will add building insurance as part of your maintenance fee that you pay every month, but you would be responsible for your contents and any kinds of improvements you make, such as upgrading the kitchen, or adding a hot tub.
Umbrella policies are another way to save some money when buying insurance for a second home. If you didn’t have an umbrella policy before, with the second home added, you now have enough assets to qualify for one.
The umbrella policy can extend the liability limits on your home, automobile and even boat policy for a reasonable amount. Most underwriting experts recommend a minimum of $1 million for people that own two homes. If you are a landlord, the umbrella policies are crucial in case one of your tenants’ friends hurts themselves on the property.
Finding the best second home insurance for you only requires a little researching and checking with your current homeowner’s insurance carrier.
Photo Credit: Cabin in the Snow 2 by drakemata