Insurance for second home vs primary home: what’s the difference?

Owning a second home sounds like a dream. It could be a peaceful lakeside cabin, a snowy mountain retreat or a sunny beach rental that pays for itself. But to keep that dream protected, it’s important to understand insurance for second homes vs primary homes. The insurance needs for a second home differ significantly from your primary residence, and misunderstanding those differences can leave you underinsured and vulnerable. Whether it’s for occasional getaways or rental income, knowing how to properly insure your second property protects your peace of mind and your wallet.

What’s the difference between second home insurance and primary home insurance?

At first glance, homeowners insurance might seem like a one-size-fits-all deal, but second homes bring different risks. Unlike your main residence, they may be located in remote areas, often vacant or even rented to strangers. Each of these factors changes the insurance equation:

• Less frequent occupancy – A second home sits empty more often, increasing the risk of unnoticed damage or break-ins.
• Separate policy requirements – Most carriers require a separate policy or endorsement for a second home because it won't be fully covered by your main homeowners insurance.
• Higher risk location – Vacation homes are often near water or forests, raising the risk of floods or wildfires.
• Different liability needs – If you rent it out, you’ll need protection in case a guest gets injured.

The main difference between second home insurance and primary home insurance is how often the property is occupied and the intended use. Second homes face higher risks when left vacant or rented, requiring separate policies that may exclude or limit certain coverages found in standard homeowners insurance.

Want help evaluating those risks? Speak with a VIU by HUB advisor for personalized guidance.

Do I need a separate insurance policy for my vacation home?

In almost all cases, yes. Insuring a second property isn't just about duplicating your main coverage. There are different risks that need to be adapted to. A standard home insurance policy covers only your primary, owner-occupied residence. Any additional property, especially one used seasonally or as a rental, needs its own home insurance policy to ensure the coverage truly fits.

Here’s why a separate policy is usually necessary:

• Standard home insurance rarely covers second homes – It’s built for full-time, primary residences and often excludes or limits coverage for losses at secondary or seasonal properties.
• Vacation homes need different coverage – A separate seasonal or vacation home policy can account for long vacancies, remote locations and weather-related exposures that may fall outside standard coverage.
• Renting your vacation home needs special coverage – Rental or investment property coverage helps protect you from guest-related liability, tenant damage and potential loss of rental income.

If you’re unsure, a VIU by HUB advisor can review your situation and help you choose the right vacation property insurance based on how you use your home.

What kind of insurance do I need for a cabin, lake house or seasonal property?

The charm of a remote getaway comes with its own set of challenges. Insurance for a cabin or seasonal home must account for long periods of vacancy, potential weather extremes and limited access to emergency services.

For seasonal properties, it's important to consider the risks that come with long periods of vacancy and exposure to severe weather. These homes are often left unattended for weeks or months, making them more vulnerable to unexpected damage. Choose a policy that allows extended periods of vacancy without limiting or voiding your protection, and make sure it includes coverage for frozen pipes, storm damage and wildfire threats that are common in vacation regions.

Cabins and lake homes may face added risks due to their location and seasonal usage. Depending on where your property is, you may need specific coverage beyond a standard second home policy. This could include flood insurance or sewer backup coverage, especially for homes near water or in low-lying areas. You may also want extra protection for wildfire exposure if the home is rural, and don’t forget to insure recreational gear like boats, ATVs or tools that are stored on-site.

How does insurance work for a vacation rental or Airbnb property?

Renting out your second home? Whether it’s every weekend or just a few weeks a year, your insurance needs shift dramatically.

Traditional homeowners insurance likely won’t cover damage from renters or liability if a guest gets hurt. You’ll need vacation rental insurance or a short-term rental insurance coverage policy.

These policies should include:

• Guest liability – Protects you if someone is injured during their stay.
• Loss of income – Covers missed rental income due to property damage.
• Rental-related damage – Addresses theft or damage caused by renters.

While platforms like Airbnb offer limited host protection, it’s not a replacement for a dedicated policy. Always be honest with your carrier about how you use the property.

Considering renting your home? A VIU by HUB advisor can help tailor the right rental coverage for you.

Is second home insurance more expensive than primary home insurance?

Often, yes. Several factors can increase your premium and make coverage more complex. That said, there are still smart ways to manage those extra costs, and here’s how:

• Install security measures – Empty homes face higher risks for break-ins or undetected issues, so adding cameras and monitored systems can lower your premiums.
• Be strategic about location – Homes in coastal, forested or mountainous areas cost more to insure, so understanding your area’s risks helps you budget accordingly.
• Limit rental frequency or increase protection – More frequent guests can mean more potential claims. If renting is part of your plan, make sure your policy includes guest liability and property damage protection.
• Bundle your policies – Insuring both homes with the same carrier may qualify you for multi-policy discounts, which can reduce your overall costs.
• Invest in local oversight – Hiring a property manager or asking a trusted neighbor to check in regularly can prevent small problems from becoming expensive claims.

Insurance tips for vacation property owners

Your second home is more than just an investment. It’s a place for family, relaxation or supplemental income. From unexpected storms to maintenance mishaps, plenty can go wrong when you’re not there. But with a few smart steps, you can help protect your property and avoid future headaches. Here are a few smart ways to protect your second home and prevent avoidable issues:

• Install monitored security or smart devices – Catch problems early and deter intruders.
• Hire local help – Property managers or even helpful neighbors can check in regularly.
• Review coverage before peak season – Policies should align with how you plan to use the home this year.
• Disclose everything – Don’t hide rental use or seasonal shifts from your carrier.
• Document your belongings – Inventory your furnishings, appliances and outdoor gear.

What coverage should I have for a vacant or unoccupied property?

Vacant homes often fall into a coverage gap. Your standard homeowners insurance typically limits protection if the home is empty for more than 30 or 60 days. If your second home sits vacant for extended periods, you’ll need specialized coverage that accounts for that risk.

• Vacancy endorsement – This means you’re covered even if the home is empty for long stretches.
• Theft and vandalism protection – This is especially important in remote or seasonal areas.
• Coverage for weather damage – Make sure it applies even if damage goes undetected for weeks with this coverage.

How much does it cost to insure a vacation property?

The price tag varies widely based on location, usage and how the home is maintained. A waterfront property in a hurricane-prone zone, for example, will cost far more to insure than a modest mountain cabin used only a few times a year. How often the property is rented out and what upgrades it has also play a big role in determining your premium.

Factors that influence the final cost include proximity to water, forests or known disaster zones; how frequently the home is rented; and the age, condition and construction of the property itself. To get an accurate rate, it's best to compare multiple quotes from carriers who specialize in seasonal or rental homes, as they’ll be more equipped to assess the unique risks involved.

Can I use my existing homeowners insurance for a rental or second property?

In most cases, no, you can’t rely on your existing homeowners insurance to cover a rental or second property. Standard policies are built for your primary, owner-occupied residence and typically exclude coverage for second homes or income-generating rentals. If you fail to disclose that you’re renting out the property or leave it unoccupied for long stretches, your carrier may deny claims or even cancel your policy. To avoid serious coverage gaps, it’s essential to secure the right insurance for each property based on how it’s used.

FAQs

What kind of insurance do I need for a vacation rental on Airbnb or Vrbo?

You’ll need short-term rental insurance that covers guest liability, property damage and loss of income. Standard homeowners insurance doesn’t apply when money changes hands. This type of policy should be tailored to the unique risks of hosting paying guests. Be sure to review the fine print and confirm that it includes protection for loss of income and damage caused by renters.

Is it harder to get insurance for a seasonal or remote cabin?

It can be harder if the property is in a wildfire zone, floodplain or far from emergency services. Some carriers may refuse coverage altogether or charge higher premiums. Look for insurance companies who specialize in rural or vacation homes, as they’re more familiar with these risks. Adding preventive measures like fire suppression systems or monitored alarms may also help secure better rates.

Can I rent out my second home and still keep it insured as a vacation home?

You can only rent out a second home and keep it insured as a vacation home if your policy is updated to reflect rental use and your carrier allows it. If the property is rented frequently, you may need a dedicated landlord or short-term rental policy. Failing to disclose this use can result in denied claims. Always clarify your plans with your insurance company to ensure you're properly covered.

Ready to protect your second home?

Explore coverage options tailored for vacation homes. Speak to a VIU by HUB advisor and get a second home insurance quote today.