By AMY GUNDERSON Resource

With the cost of home insurance skyrocketing, especially in coastal areas vulnerable to hurricanes and flooding, second homeowners
are facing even higher premiums. But there are ways for them to trim their monthly premiums. Several states now require insurance
companies to sell discounted premiums to owners who take extra precautions to reinforce their homes. Discount policies vary by state and insurance company. A homeowner can figure out which improvements to make by working with a local insurance agent and getting an inspection to secure the savings. While some states have grant programs for adding hurricane protections to homes, those are generally limited to primary residences. Vacation homeowners, however, have access to other discounts in insurance premiums or hurricane deductibles.

FLORIDA Vacation homeowners qualify for discounts if they add hurricane protections to their homes, said Teri Johnston, the president of Fair Insurance Rates in Monroe, a consumer advocacy group based in the Florida Keys. Hurricane shutters and improvements that help strengthen roofs are on the checklist of “hurricane mitigation additions,” or improvements that can shore up a home and trim insurance costs. By taking those measures, Ms. Johnston said, “you can lower premiums by 45 percent” off the highest rates.

OTHER WAYS TO REDUCE PREMIUMS
Vacation homes typically carry higher insurance premiums because they aren’t occupied full time. “The risk for insurance on vacation properties is much higher,” said Jeff McCollum, a spokesman for State Farm Insurance. “People may not be there that often, so there is the risk of fire and theft.” One basic strategy for lowering out-of-pocket premiums without making improvements is to raise the amount of a deductible.
For shoppers considering the total expense of maintaining a second home, a house’s location can also affect the insurance rates: A home in a gated community will probably secure a lower premium; new homes, with strict building codes, will also secure better rates than older ones.
Other ways to cut costs in the long run include installing security systems that can alert the local police, or installing a fire-resistant roof, if you live in a wildfire-prone area. Discounts from State Farm, Mr. McCollum said, can range anywhere from 5 percent to more than 20 percent off of a premium. There are many other improvements that might help. The Institute for Business and Home Safety (www.ibhs.org) provides tips on how to best protect a home from natural disasters, including wildfires, floods, high winds, hailstorms and even earthquakes. While the group does not spell out which improvements may result in an insurance break, a call to an insurance company can determine the potential savings. Whether such improvements are worth making comes down to doing the math, and looking at how long it will take to recoup the cost of the project in savings, said J. Robert Hunter, the director of insurance for the Consumer Federation of America. While savings vary, he said, such mitigation discounts from insurance companies are one bit of good news to come from an industry that has been widely criticized for double-digit rate increases and pulling out of some coastal markets altogether. “It’s a good insurance industry response to making homes safer,” Mr. Hunter said.