Second Home Insurance in Texas: A Complete Look at Coverage

Owning a second home comes with insurance needs that your primary policy won’t cover. Whether it’s a lake cabin, beach condo, or rural getaway, Texas doesn’t require second home insurance, but lenders do, and these properties face higher risks from vacancy, weather, and location. Our guide breaks down how second home insurance works in the Lone Star State, why these policies often cost more, and how to choose the right coverage for your property.

What Is Second Home Insurance in Texas?

Second home insurance is a separate homeowners policy designed for a property that isn’t your primary residence. Insurers classify these homes differently, often as seasonal, vacation, or non-primary residences, which changes how coverage is written and how risk is calculated. Your primary home’s insurance does not fully cover:

• The second home’s structure.
• Belongings that are stored at the second home.
• Liability risks at the second home.
• Rental-related damages.

Because a second home is treated as a separate risk, it requires a separate policy to be properly protected.

Is Second Home Insurance Required in Texas?

Texas doesn’t require insurance for a second home, but you may still need coverage. If the property has a mortgage, your lender will require it. However, state rules prevent them from demanding limits above the home’s replacement cost. Still, even without a loan, insurance is essential. From storms and break-ins to liability risks, most second-home owners choose coverage because the financial exposure is simply too great to ignore.

Why Texans Need a Separate Policy for a Second Home

Second homes carry unique risks, especially in a state with weather extremes, coastal exposure, and large rural areas. This is why insurers treat these properties differently. Carriers assess each home and its risks differently, meaning you’ll have a unique premium to match the property’s unique risks. Furthermore, homeowners will want to have policies that are specific to the risks of each property, to avoid coverage gaps. There are several reasons to have a different homeowners policy for your second home. Below are a few of the most common.

Vacancies Create Higher Risks

Second homes are often empty for extended periods. That leads to:

• Higher risk of theft and vandalism.
• Increased chance of undetected damage.
• More severe losses from leaks, water damage, or storms.

Example: A freeze hits Central Texas in January. A pipe bursts in your unoccupied vacation home, leaking for days before anyone notices. Damage spreads through walls, ceilings, insulation, and floors. Insurers price second homes higher because this type of situation is far more likely in vacant properties.

Texas Weather and Location Risks

The Lone Star State provides beauty, but it is also home to some of the nation’s most intense weather.

• Coastal Areas: hurricanes, storm surge, windstorm requirements
• Hill Country: wildfires and delayed emergency response times
• West Texas: hailstorms and isolated access
• East Texas: wind, lightning, and flood risks
• North Texas: ice, tornadoes, and hail

Insurers may require additional coverage or separate windstorm policies depending on where your second home is located.

Rental Activity Changes the Policy You Need

If you plan to rent out your second home, the type of coverage you need depends on how often it’s used:

• An occasional weekend rental may only require a short-term rental endorsement.
• Regular Airbnb or VRBO bookings typically need a dedicated short-term rental policy.
• However, long-term tenants call for full landlord insurance.

What’s important to remember is that standard homeowners insurance won’t cover damage caused by paying guests, so selecting the right policy is key.

Coverage Gaps in Your Primary Home Policy

Many Texans assume their primary homeowners policy protects belongings stored at their second home. However, primary policies usually place lower limits on property kept outside your main residence. A second home policy ensures:

• Proper dwelling coverage
• Correct personal property coverage
• Adequate liability protection
• Optional loss of rental income coverage
• Support for short-term rental operations, when applicable, and depending on your needs.

How Second Home Insurance Works in Texas

A second home insurance policy offers the same core protections as a standard homeowners coverage: dwelling, personal property, and liability. The difference is how insurers rate the risk. Because second homes are often vacant or in higher-risk locations, policies may start with lower limits or different requirements. However, that doesn’t mean you’re underinsured. You can raise coverage limits or add endorsements to match the home’s value and how you use it, and depending on where the property sits, you may need extra protection like flood insurance, windstorm coverage, wildfire endorsements, or short-term rental coverage. In short, second home insurance works just like your primary policy. You simply customize it to meet the unique risks of owning a vacation or investment property in Texas.

How Much Does It Cost to Insure a Second Home in Texas?

While prices vary by carrier and risk, realistic Texas average annual ranges can cost between $2,000 and $7,000+, depending on your property’s location: Just like your primary home’s policy, your costs will vary depending on its age, condition, location, construction materials, the amount of coverage you need, your deductibles, etc. However, for a second home, the amount of time that it sits empty will also be a key factor in calculating your premium.

Texas-Specific Risks That Influence Your Rates

Your second home’s insurance cost depends heavily on where it's located and the risks around it. In Texas, certain environments drive premiums higher, including:

• Coastal Areas: May require TWIA windstorm coverage or separate wind/hail policies.
• Flood-Prone Zones: Coastal regions, lakefront homes, river areas, and Hill Country flash-flood zones all need separate flood insurance—it's never included automatically.
• Rural or Remote Properties: Longer emergency response times, higher wildfire exposure, fewer hydrants, and limited fire services all raise risk and, in turn, your premium.

Second Home Insurance for a Family Member

If a family member lives in your second home, even if they don’t pay rent, things get a little more complicated, as you cannot insure it as a typical secondary property. When family is involved, insurers may classify the property as:

• Non-owner-occupied residence
• Rental property
• Secondary residence with an endorsement

Proper classification matters because liability must match who occupies the home, not just who owns it. Just in case you’re wondering, failing to disclose occupancy is a bad idea. In the event of a loss, your carrier can deny your claim if they aren’t up-to-date on who is living there.

How to Insure a Second Home in Texas

Getting coverage for a vacation or second home doesn’t have to be complicated. The simplest way to secure coverage is to:

Confirm How the Property Will Be Used

Is the home:

• Seasonal?
• A vacation retreat?
• Rented part-time or full-time?
• Used by family members?

Each scenario needs a different policy type. Confirming how your second home is going to operate is the foundation for getting the right policy.

Assess Location-Based Risks

There are several considerations when it comes to the location of your home. To find proper coverage, always consider:

• Proximity to the coast
• Flood zones
• Wildfire-prone areas
• Rural distance from fire stations
• Hail and storm exposure

Review Lender Requirements

If you have a mortgage, you’ll need to understand what coverage limits your lender requires. This means you’ll need to confirm the amount of dwelling coverage you have and that it doesn’t exceed replacement cost under Texas law.

Choose the Right Type of Policy

Having options means you can find the best type of coverage for your specific needs. Your options may include:

• Secondary home policy
• Landlord insurance
• Short-term rental coverage
• Vacant home insurance (for long unused stretches)

Evaluate Your Liability Needs

How much liability you carry is going to be a big factor in the coverage you need. If guests or renters visit often, consider higher limits. It’s also a good idea to consider an umbrella policy as supplemental coverage for larger risks that exceed the limits of a normal home policy.

Work With a Licensed Texas Agent

With so many factors to weigh, comparing prices and coverage on your own can feel overwhelming. A licensed professional can simplify the process, help you avoid gaps, and identify the strongest options for your needs. Furthermore, because independent brokers aren’t tied to a single carrier, you get honest guidance and the ability to compare multiple top-rated policies without the sales pressure.

Get Second Home Insurance in Texas for Less

Your second home needs coverage built around how you use it and where it’s located. Whether it’s your weekend getaway, a long-term investment, or a place to gather with family, the policy you choose matters. Texas brings incredible beauty, but also unique risks, from hurricanes and hailstorms to vacant-property exposures. With the right policy, you can protect your property, your belongings, and your peace of mind. Freedom Insurance Group compares top-rated carriers across Texas, helping you secure the right protection at the right price, without paying for coverage you don’t need. Contact us today by calling the number at the top of the page, or get a quote for your second home insurance policy by clicking the link in just a few minutes. Sources: III. Accessed December 2025.