Whether you own a secondary home to enjoy on vacation or rent out for revenue, it’s a good idea to consider your insurance needs. Vacation home insurance is a little different than primary home insurance since insurers view these properties as higher risk.

Here’s what you need to know about how primary and second home insurance policies differ, what vacation insurance covers, and how to find affordable coverage.

What is vacation home insurance?

A vacation home is a secondary residence that you might use on the weekends or while on vacation — or you may rent it out for revenue. Vacation homes are often in a different location from your main residence, providing a nice change of scenery. Just as you need adequate insurance to protect your primary residence, you need a separate policy to protect your vacation property.

While the same types of insurance are available for both properties, you can expect to pay more to insure your second home. Since you aren’t always at your vacation home, it has a higher risk of vandalism, theft, and undetected maintenance issues.

Best vacation home insurance companies

Not all insurance companies offer policies for second homes. To help you focus on the companies that do provide vacation insurance, consider some of the best insurance companies offering secondary insurance below.

Farmers: Best for customization

Progressive: Best for ease of buying

Liberty Mutual: Best for bundling

Hippo: Best for high-tech protection

American Family: Best for temporary rental coverage

The Hartford: Best for snowbirds

How vacation home insurance differs from homeowners insurance

Insurance for a secondary property can have different terms than a policy for your primary residence. How you use your vacation property and how often you reside there can affect the type of coverage you need.

Insurance companies often write coverage for secondary residences on a “named perils” basis. This means your insurer will only cover losses due to the perils outlined in your policy. You won’t have coverage for any unnamed perils.1

Insurance for your primary residence typically covers all perils except the ones your policy explicitly excludes. When selecting coverage for your vacation home, carefully consider the location and any specific risks that you want to cover.

The following table highlights some of the different risk factors for primary and vacation properties.

What vacation home insurance covers

A secondary home insurance policy typically provides the following coverage:

What vacation home insurance doesn’t cover

When insuring your second property, it’s important to understand what your policy doesn’t cover so you don’t have unpleasant surprises. Here are some things this insurance typically won’t cover:

• Wear and tear: Like your primary homeowners insurance policy, your vacation home insurance won’t cover wear and tear.

• Maintenance issues: If you fail to properly maintain your home, such as not repairing a leaky roof or pipe, your insurance won’t cover the damage.

• Natural disasters: If your vacation home is in an area prone to floods, winds, or earthquakes, you might want to consider additional insurance. For instance, if an earthquake damages your beach house in California, your insurance won’t pay for damages unless you have additional earthquake insurance.2

Cost of vacation home insurance

The average national cost for $300,000 in dwelling insurance for a secondary home is $2,693 per year, compared to $2,377 for primary home insurance.

The annual cost of vacation home insurance varies greatly between states due to factors like location and exposure to natural disasters. Insuring a vacation home in Vermont costs an average of $1,040, while the average cost in Florida is $12,458.

Florida is prone to a range of disasters, including severe storms, cyclones, drought, and flooding, which increases the risk to home insurers and the cost to homeowners. Though Vermont also experiences weather disasters, the frequency and associated costs aren’t as high.

Compare average annual costs for secondary home policies with $300,000 in dwelling coverage by state.

Factors that affect vacation home insurance costs

Insurance companies use many factors to determine the cost of a standard home insurance policy, including your home’s age, building materials, if you have a security system or sprinkler system, and your claims history.

When determining premiums for a second home, your insurer will consider the following variables:

• Location: Vacation homes are often in higher-risk areas, such as beaches or forests. When calculating your insurance premiums, insurers will carefully consider the type of natural disasters your vacation home is vulnerable to.

• Extra amenities: Added amenities like a hot tub or pool can increase your home’s risk and insurance rates.

• Property value: How much your property is worth also influences the cost of home insurance. If you own a high-value vacation property, you can expect to pay more for insurance coverage.

• Vacancy: If your vacation property is unoccupied for a period of time, this can increase the risk of break-ins and vandalism. Vacant properties can also lead to undetected issues, such as a leaky or burst pipe. If you aren’t checking in on a regular basis, this can cause major damage.

• Renters: Having renters in your vacation home is likely to increase the cost of insurance, as insurers view it as another risk. You may also need to purchase additional coverage.3

Other insurance policies to consider for a vacation home 

To provide the proper protection for your vacation home, you may consider some of the following insurance policies in addition to standard homeowners coverage:

• Flood insurance: Flooding is the most common natural disaster in the U.S., and standard homeowners insurance policies don’t cover it. If you have a vacation home in an area prone to flooding, consider purchasing a separate flood insurance policy through a private insurer or from the National Flood Insurance Program (NFIP).

• Earthquake insurance: A standard home insurance policy generally won’t cover damage from an earthquake. Some policies will cover damage from a fire following an earthquake and expenses to live elsewhere if your home is uninhabitable. If your vacation home is in an area prone to earthquakes, many private insurers offer separate policies or endorsements.

• Wind and hurricane deductibles: In high-risk hurricane areas, homeowners insurance policies come with percentage deductibles for damages from windstorms or hurricanes. Deductibles typically depend on a percentage of the home’s value. For example, if a house has $300,000 in dwelling insurance and a 5% hurricane deductible, you’ll pay the first $15,000 before insurance kicks in.

• Umbrella insurance: Your standard homeowners coverage provides liability insurance up to your policy’s limit. An umbrella policy provides additional liability coverage that kicks in once you’ve hit your standard policy limit.

• Landlord insurance: If you plan to rent out your vacation home for short periods of time, you may need to add an endorsement to your existing policy. For longer-term rentals, you may need to purchase landlord or rental dwelling insurance.

Vacation home insurance FAQs