Insuring Your Second Home: All You Need to Know

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on February 28, 2025

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Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated February 28, 2025

Visit author page

4 minute read

Article Contents

Owning a second home can come with many perks: a place for weekend getaways, a future retirement spot, or a property you rent out to generate additional income. However, with this extra property comes the responsibility of protecting your investment with the right insurance coverage.

Are insurance premiums more expensive for your second home? What kind of coverage do you need? Do you need landlord insurance? In this article, we’ll discuss key distinctions between primary and secondary residence insurance, why coverage for a second home is a wise choice, and the types of policies available for your second home.

Insuring Your Second Home At a Glance

  • Second homes typically face unique risks because they may be located in remote areas, used seasonally, or left vacant for extended periods.
  • Over 4 million Canadians own more than one property.
  • Second homes have different insurance considerations compared to primary homes, often requiring a separate home insurance policy.

What is the Difference Between Insuring Primary and Secondary Residence?

Your primary residence is the home you live in most of the time, while a secondary residence is a property you spend less time in. Insurance policies for a primary home tend to be more straightforward because it’s assumed you are regularly on-site to address issues like maintenance and repairs.

On the other hand, insurance companies often have separate guidelines or policy types for second homes that reflect the additional risk a second home faces.

Due to less frequent occupancy, a secondary residence can face certain risk factors: small incidents (like a minor leak) can go unnoticed for days or even weeks, and vacant properties may attract theft or vandalism. Premiums for primary residence insurance can be more affordable compared to secondary homes because insurance companies consider an owner-occupied home less risky.

Why Should I Insure My Second Home?

Like your primary residence, unfortunate perils can befall your second home, and it’s important to protect yourself against these events. Here are some reasons it’s a good idea to insure your secondary residence:

Protection from natural disasters

Over the past few decades, the frequency and intensity of natural disasters in Canada have increased. With wildfires, floods, and even tornadoes happening more often, having adequate insurance for your second home can be a financial safety net.

Remote locations and specialized risks

If your second home is situated in a remote or rural area, you may face more risks based on its proximity to other people and facilities. Insurance tailored to these specific hazards ensures you’re adequately protected, covering costs related to repairs, mould remediation, and other complications.

Rental concerns

Many people rent out their second homes when they’re not using them. While this can be profitable, it comes with additional risks. Tenants might damage the property, or a liability claim could arise if someone is injured on the premises. Proper insurance for a rental property covers these scenarios.

Loan and mortgage requirements

If you financed the purchase of your second home, your lender may require you to maintain adequate insurance coverage. This requirement protects their financial interest in the property, ensuring it can be repaired or rebuilt if unexpected damage occurs.

Why Should I Insure My Second Home

What Type of Coverage Should I Choose?

When shopping around for an insurance policy for your second home, one of the most important considerations is the type of insurance coverage you choose. Different policies cater to various scenarios, and homeowners must choose one that’s compatible with how the property is used and what risks it faces.

Here are some of the common options for secondary home insurance:

If you only visit your second home periodically, there may be long stretches of time when the property stands empty. Many standard homeowner policies include clauses that limit coverage if a property is left vacant for a specified period, often 30 or 60 days.

In those cases, vacant home insurance offers protection against the elevated risks of vandalism, theft, and other damages more likely to happen when a property is unoccupied.

Cottage insurance might be a better fit for those who own a second home in a cottage or recreational area, especially in rural or wilderness settings. Also referred to in some regions as “seasonal property insurance,” this policy can cover a range of exposures typical for vacation homes. 

This can include watercraft liability if you keep a boat on the premises, coverage for outbuildings like boathouses or sheds, and even protective measures for your unique environment.

If you intend to rent out your second home, landlord insurance could be the best option. These policies typically cover property damage from events like fire, storms, or vandalism. They may also offer liability protection if a tenant or visitor is injured on your property.

Another benefit of landlord insurance is loss of rental income coverage. If the property suffers damage that makes it uninhabitable, your insurer could reimburse you for rental payments you miss out on while repairs are underway.

Depending on the location and nature of your second home, you might need specialized endorsements or add-ons to a standard policy. These can include:

  • Flood Insurance: Floods have caused an average of nearly $800 million in insured losses annually for the past decade in Canada, making coverage more important to homeowners than ever. Unfortunately, homeowners insurance won’t typically cover flood damage if your home is in a flood-prone zone. A separate flood insurance policy or endorsement is needed.
  • Earthquake or landslide coverage: In regions known for seismic activity, your property might need additional coverage for earthquakes or ground movement.
  • Wildfire coverage: If you own a cabin in an area susceptible to wildfires, an extra endorsement may cover damages that could otherwise be excluded.

Can I Get a Discount When Insuring My Second Home? 

While second-home insurance can be costly, there are several ways to reduce premiums and secure a better rate. Here are some tips to help you save on premiums for your second home:

Bundle policies:

If you have auto insurance, boat insurance, or an existing homeowners policy, ask your provider if they offer multi-policy discounts. Placing multiple policies under one insurer can often lower each plan’s premium.

Security systems and upgrades:

Installing a security system, smoke alarms, water leak detectors, or smart home sensors can lower your insurance costs.

Higher deductible:

Opting for a higher deductible can lower your monthly or annual premium. Just be prepared to pay more out of pocket if you ever file a claim.

Shop around:

Don’t forget to get quotes from multiple insurance providers. Even small differences in coverage limits, discounts, or pricing structures can save you hundreds of dollars annually.

Key Advice From MyChoice

  • Second homes may need more specialized endorsements and coverage than your primary home. This can mean higher premiums on your second home insurance policy.
  • Bundling together multiple policies, choosing a higher deductible, and installing security systems can help lower the insurance costs for your second home.
  • Make sure that your second home is insured against climate events that commonly happen in its area. This usually involves purchasing additional riders.

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