If you own a vacation home or beach house, insurance rates may be higher because it's considered a higher-risk property than your primary residence. There are various reasons second homes are deemed riskier, such as: Greater chance of burglary: Since vacant or unoccupied homes are more likely to be targeted by intruders than an occupied home, the risk to your insurance company is more prevalent. Hazards are more likely to go undetected: Homes that sit unoccupied are more susceptible to damage such as leaks, burst water pipes, fires, and undetected mold. Location risks: The location of the home can also impact home insurance rates for vacation homes. Vacation or summer homes are often located in higher-risk areas such as near the beach where flooding and hurricanes are more likely to occur, or in remote, heavily wooded areas where forest fires may be an issue. Homes that are off the grid and have no running water or electricity don’t require special insurance but may also be riskier to insure, as these homes rely on fireplaces or coal stoves for heat.