Insuring Primary and Secondary Homes With The Same Insurance Provider

Secondary homes can provide you with the perfect getaway during a vacation, or can even offer investment possibilities for your future. If you are lucky enough to own a second home, or are looking into purchasing one, there can be a lot of stress and confusion regarding how to best receive insurance coverage for your new property. 

At Berry Insurance, we’re experienced in providing the best coverage for all of our clients homes, no matter the number. 

In this article we’ll cover the benefits that can come with having both primary and secondary homes insured by the same agency or insurance provider, as well as what goes into insuring second homes when they are vacation or rentable properties. 

Benefit of receiving insurance with the same provider

Both your primary and secondary home would require their own individual homeowners insurance policies, so they can both receive proper individual coverage through your insurance provider.  

As when bundling a home and auto policy, insuring both homes through the same agency or carrier is a great way to yield better coverage and lower rates. It is great to keep insurance within the same insurance company, but if that is not an option, we would still recommend trying to have both policies through the same insurance agency. 

While usually dependent upon the carrier, having multiple policies with the same insurance provider would allow you to take advantage of more discounts that they may have available. This would likely offer a slight discount to the primary home listed with the account credit. 

Using the same provider for all of your policies would also allow them to have a broader view so they can spot any gaps or overlap in your coverage - something not possible if they only have the information for one of your policies. 

You may also save time during the application and renewal process by only having to contact one source and have one conversation, rather than having to call multiple companies. 

How much will insuring a second home cost? 

The cost of insurance on your second home can vary just as much as that of your primary home, rates being based on several different factors. 

Factors that influence the cost of homeowners insurance 

The following reasons would impact the insurance rates you receive on any primary or secondary homed policies: 

Location:

Where your home resides is certainly to be a factor when determining coverage, especially if the second home you're trying to insure is a coastal vacation home. This could increase the overall level of exposure risk that an insurance provider sees in your property. 

Home Insurance Limits: 

Limits are the total amount the insurance carrier would pay out if you were to have a claim. Your homeowners insurance policy may have certain limits for coverages such as dwelling, personal property, other structures, loss of use, medical payments to others, personal liability, and personal injury. 

When you have higher limits, you can usually expect a higher insurance cost. 

Deductible:

A deductible is the amount you would have to pay out before an insurance carrier pays you any claim money - your set deductible amount usually being taken out of the cost of repairs or replacements provided by your carrier when you file a claim. 

When insuring your home, you can generally choose between set deductibles of $1,000, $2,500, and $5,000. 

The higher your deductible, the lower your premium will be on the policy. 

Prior Claims:

If you have a long history of home insurance claims on your primary home, your carrier will consider you more of a risk on any future policies, charging you more if any coverage is given. 

Other factors:

• The home’s age
• The home’s size
• Materials the home is made out of (age/rarity/cost of materials) 

Ways to save money on your policies

As covering the cost of insuring more than one home can be expensive, it’s important to know the best ways in which you can save on your policy. The following tips can help you assure you’re not overpaying for your coverage. 

• Bundling coverage for discounts
• Carrying a higher deductible to lower the premium 
• Installing an alarm system on the property
• Switching to paperless billing

Do vacation homes alter coverage? 

If the secondary home you are looking to insure is a vacation property, you may find it more difficult to receive coverage. 

Common vacation home factors would influence the number of carriers willing to offer insurance coverage, including whether or not it is a coastal property and if it is left uninhabited for a large portion of the year. This increases the insurance companies perceived risk of the property, and would likely increase the cost of the insurance. 

If the property is left empty for some of the year, you would need to make sure to properly protect your home while you’re away. This can include keeping the heat at an acceptable level to deter any possible pipe freezing and shutting off the water line if it will not be used for a long period of time. 

In most instances, a standard homeowners policy won’t cover damages to an vacant home, requiring you to get specific coverage through vacant property insurance. 

While dependent upon the insurance carriers own restrictions, you can often still insure any second home that is simply left unoccupied for part of the year under a standard homeowners insurance policy.

In some cases, even properties that will be rented out for some of the year can be covered through a standard policy. If the insurance carrier does not cover rental properties under standard homeowners coverage, you may instead need to cover the home through a dwelling fire policy for rental usage. If you’re looking to insure a one - three unit rental property, you can learn more about this policy and how it differs from standard homeowners insurance here: What is Dwelling Fire Insurance? How to Insure a Rental Property.

Protecting your homes together

Pairing up the insurance coverage for both of your homes (as well as any other existing policies, such as auto) with the same agency or company is a great way to not only receive any possible discounts, but also have the simplicity of keeping your coverage in one place. 

Bundling coverage through one company or agency can give you the peace of mind that each of your policies are being protected by the same source, and allows you to qualify for lower costs overall. 

When juggling multiple policies, it’s important to consider all of your options when it comes to picking an insurance agency or carrier. To know more about the process and how to choose the best option for you, check out this article: What to Look For when Selecting an Insurance Agency or Company.