Second Home Insurance

By: EconomyWatch   Date: 26 May 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Second home insurance covers damage to the insured home and its contents caused by eventualities such as fire, theft or natural disasters. Whether an individual resides in the second home or not, it is essential to secure it against potential threats to avoid financial losses.

What Does Second Home Insurance Cover?

In general, there are two sections of second home insurance cover – building insurance and contents insurance. Building insurance is a liability cover in case of bank lending or mortgage. Contents insurance, on the other hand, provides peace of mind by covering expensive and valuable belongings.

Apart from the basic coverage options, some insurance companies offer additional cover as well. Legal cover provides financial benefits against liabilities for damage to another person due to the insured property. By paying extra premium, one can extend the scope of second home insurance to cover against natural disasters.

 

Essential Tips to Save on Second Home Insurance

Insurance companies consider several factors for the risk assessment of the property to be insured. By spending some amount on necessary modifications, it is possible to lower the risk factors and earn a discount on the premium.

  • Alarm systems: Installing a high quality alarm system to secure all zones of your home will could be slightly expensive. But doing so can make a significant difference to the second home insurance premium.
  • Neighborhood: The locality and the neighborhood of the home also have a huge impact on the premium. If your home falls in a posh area, the premium goes up. Existence of a gated entry point earns at least 15 percent discounts on the policy price.
  • Umbrella policy: Second home owners can consider buying an umbrella liability policy. This policy will provide extended liability coverage against property, its contents and the automobiles of the policyholder.
  • Rental home discounts: If you rent the property for the period it remains vacant, it will get reflected in the second home insurance policy price.
  • Combined insurance: It is always a good idea to combine several insurance policies. An individual can combine the insurance policies for both homes. You can also buy a combined insurance policy that offers home, contents, car, health and other types of cover.

Second home insurance can vary considerably depending on personal requirements and choices. Shopping around for quotes from different insurance companies can earn great savings.


  • Dot Div
  •      

Most Popular in Insurance Directory

Related Links
blog comments powered by Disqus