Your primary home insurance provides financial security by insuring your house, possessions, and assets. Homeowners’ insurance for a second home does the same.
The primary distinction is that second homes typically have higher home insurance rates due to a higher risk of claims.
The same coverage is included in homeowner’s insurance for second homes as for your primary residence, but due to the higher risk of insurance claims, vacation homes are typically more expensive to insure.
The benefits of owning a second home are numerous. To begin with, it provides two locations for you to travel between (making life more interesting).
Furthermore, it enables you to simultaneously increase the equity in two properties (your residence and your investment property). Additionally, it can function as a cash-flowing asset when rented out temporarily.
For many folks out there managing vacation homes can be challenging. When will I arrive at my vacation home? What can I leave in my vacation? Who will use it when I am not using it? All of these questions and more often present themselves when owning a vacation home. Read More