Second house insurance is also known as holiday home insurance. The protection you'll need depends on several factors, including how frequently the property will be used and for what purposes. For instance, if you want to rent it out, you may require insurance to pay for a complete replacement in a disaster like a fire or a hailstorm. If you own a rental property, the coverage provided by a standard homeowner's insurance policy may not be sufficient in a disaster or other major tragedy. In this case, consider rent loss insurance.
Furthermore, be sure you have enough liability insurance if anything happens to you or your family at your second property. Extra protection against lawsuits stemming from injuries sustained on your property may be obtained with the help of an umbrella insurance policy.
Last, add catastrophe insurance to your policy in case of a storm, flood, or earthquake. Most homeowners' insurance policies do not cover disasters like this. If your insurance provider refuses to pay for the damage caused by a large hurricane or earthquake, you might be in a sticky financial position.
Whether for personal use or investment purposes, buying a second house is similar to purchasing a main dwelling. In the event of a natural catastrophe, for instance, you'll want to be sure that your new home is adequately insured to cover repairs and everyday use. The specifics of planning for a second house stem from its intended purpose. You should see a financial expert to ensure you've considered all your financial options if you're attempting to safeguard your money.
