Is Second Home Insurance More Expensive?

Second homes, whether they’re holiday cottages, inherited family properties or buy-to-lets, come with extra risks that insurers take into consideration. These often include long periods when no one’s there, or the home being let out to guests. Both can increase the chance of problems like damage, theft, or unexpected costs.

As a homeowner, you might wonder: is second home insurance more expensive? In this guide, we’ll explore the answer to this question, what factors affect your home insurance premium and what you can do to help manage your costs. We’ll also explain when you may need a separate policy for a second property.

What makes a second home different to insure?

For insurance purposes, a second home is any property you own that’s not your main residence. This could be a holiday cottage, a flat you’ve inherited or a property you rent out to guests.

Insurers often see second homes as riskier than your main home because second homes are usually left unoccupied for longer periods. This means issues like leaks or damage might go unnoticed. And if your property is in a remote location, it might be even harder to keep an eye on, and emergency services could take longer to get to it.

If you rent out your second home to guests, this adds another layer of risk because people coming and going increases the chance of accidental damage or theft.

These factors all contribute to why insurers treat second homes differently and why the cost of insurance can be higher than you’d expect for a typical home.

Why second home insurance often costs more

As we've briefly mentioned, second home insurance tends to be more expensive than standard home cover. That’s because insurers see these properties as higher risk for a variety of reasons:

• More time unoccupied – If your second home is empty for long periods, there’s a higher risk of unnoticed issues like leaks, damp or even pest problems.
• Harder to monitor for damage – It’s not easy to keep an eye on a property you’re not living in. That means small problems can become big ones before you even know it.
• Higher burglary risk – Empty properties are more likely to attract thieves. And if your home is in a remote or rural area, it can be an even bigger target.
• Letting to guests – More people visiting your property means more chances for things to go wrong.

All these factors mean that second home insurance premiums are often higher than you’d expect for a normal family home. However, it’s not about penalising you as a homeowner. It’s about pricing cover fairly reflecting the extra risks involved.

What affects your second home insurance premium?

When it comes to second home insurance, the cost of your premium can vary a lot. Your insurer will consider a range of factors to decide how much you’ll pay, including:

• Location – If your second home is in a rural area or somewhere that’s hard to access, you may pay more as the risk of issues like delayed emergency response or undetected damage increases.
• Security – Homes with strong security features, like alarms, cameras and good locks over and above the minimum standard of security requirements, can often attract lower premiums.
• Letting – If you rent out your second home, the extra footfall and potential for accidental damage or theft can increase the cost of cover.
• Claims history – If you’ve made claims on your home insurance in the past, insurers may see your property as higher risk.
• Level of cover – Policies that include extras like accidental damage or personal legal expenses insurance will usually cost more.

If you’re familiar with the factors insurers look at to determine the cost of a policy, you can take steps to manage your second home insurance costs and make sure you’re not paying more than you need to.

Tips to reduce the cost of second home insurance

There are all sorts of ways you can help lower the cost of insuring your second home or flat, without cutting corners on protection. These are some examples of how you may be able to   keep your second home insurance costs down:

• Install alarms – Adding a security system, cameras or smart locks can help to deter burglars and show insurers you’re taking extra care. Check with your insurance provider to determine the type of additional security that would qualify for a discount.
• Use smart tech – Technology that can detect issues like leaks early, or simulate someone being home with timed lights, can help reduce risk.
• Multi-property policies – If you have more than one property, insuring them together could help you save.

By thinking ahead and taking simple steps to protect your property—like adding security features or arranging regular check-ins—you can show insurers that your second home is less likely to have issues. This can help lower the cost of your insurance while still making sure your home is covered.

Do you need separate insurance for a second home?

Standard home insurance policies are designed to protect your main residence, so they won’t extend to a second home. Instead, you’ll need second home insurance. This is specifically for properties that aren’t your primary residence and typically includes cover for risks like theft, accidental damage and issues that can arise when a property is empty for long periods.

If you let your second home to paying guests, you may also need extra cover for things like public liability, accidental damage, or loss of income if the property can’t be rented out due to a claim.

It might sound like an added hassle, but getting separate insurance can help make sure your property is properly protected.

Get the right cover for your second home

Second home insurance helps protect your property when you’re not there, but that doesn’t mean it has to be expensive. From how often the home is used to where it’s located, knowing what affects your premium can help you make smarter choices about your cover.

Get a second home insurance quote with Towergate

You can get a second home insurance policy quote online or speak with one of our friendly advisors by calling us on 0345 266 8578.

About the author

James Cooper is a respected industry leader with around 10 years' experience in the home and property insurance sector. He works across a broad range of insurance product and policy development and delivery, including product development; customer sales and marketing; and P&L accountability.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.