Does home insurance cover insurance on second property?
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Asked October 19, 2010
Not by itself. A home insurance policy is written to cover one home and related structures at a single location. A basic policy would not be used to insure two homes; there are complementary insurance policies available for landlords or those who maintain separate homes. Which one of these policies you will need depends on how much of your personal property be at the second location, and whether you would be comfortable replacing that property out of pocket. If the second home were to be rented, for example, you would be responsible for a loose step, but if your tenants were burglarized your insurance would not be involved.
On the other hand, if you have a home and want to insure another, second home coverage can be purchased at a reduced premium rate. This would provide two types of coverage for the home: Liability coverage and property coverage to protect your personal property contained on that particular property. Another option, if you plan to rent the second home, is to insure it with a landlord's insurance plan. This type of coverage covers liability costs associated with the property but does not include any personal property coverage.
You can also reduce the cost of your second home insurance premiums by installing a fence around the property or adding an alarm system. If you are financially able, increase the deductible on the property, making you responsible for a higher amount of loss or damage before the insurance policy goes into effect, but lowering the amount of the premiums you pay.
Answered October 19, 2010 by Anonymous