Why Home Loan Insurance Is More Expensive for Second Properties

Finally, the price of home loan insurance will obviously vary depending on the destination of the property, namely whether it is a main residence or a secondary residence. In effect, in the case of a second home, the risks of theft and vandalism are higher due to the vacancy rate of the property which is also increased. The cost of borrower insurance will therefore be higher.

In addition, it is also necessary to take into account the fact that in the event of a disaster, it is more difficult and takes longer to secure the accommodation and its equipment in the case of a second home. The consequences of a disaster can therefore worsen more quickly than in the case of a principal residence in which the occupants intervene more quickly.

Without forgetting that the vacancy of the premises can also lead to a faster degradation of equipment, due to the lack of ventilation and cleaning in particular, but also due to the lack of use of the elements. For example, pipe breaks are among the most common claims in second homes.