Is it compulsory to insure your second home?

Home insurance is not compulsory by law in Luxembourg. But imagine what would happen to your second home in the event of flooding or fire... After all, a second home is subject to more risks than a main residence. It is unoccupied for a large part of the time and can therefore suffer serious damage in the event of water damage, for example. Discover the 5 things to factor in before taking out your home insurance in Luxembourg.

Can I extend the home insurance for my main residence to cover my second home?

These are two separate policies. Each insurance policy covers a specific property. However, some options don’t need to be taken out twice.  For example, if you’ve taken out a Civil Liability (CL) option under your main home policy. You don't need to take it out for your second home. You’re covered!

What are the most common risks to second homes?

• Weather-related damage is the main source of risk: storms, strong winds, snowfall and hail can damage roofs, windows and doors and cause water to seep in.

Joseph owns a wooden house in the Oesling region of northern Luxembourg, near the lake at Esch-sur-Sûre. With his wooden front door, he's always a little worried when he's away for long periods.

"I worry that water will stagnate or that snow will accumulate and end up causing the door to swell. If the weather's bad, I ask my neighbour to take a look and make sure the water hasn't got inside the house.”

• Water damage is another common risk. With Luxembourg's harsh winters, pipes can freeze and eventually burst. Drain the pipes if you're away all winter, or opt for antifreeze.
  
• Burglary and vandalism are also major risks, as second homes are by definition less closely watched, making them a potential target for burglars.
  
• Damage caused by animals - such as wild boar destroying your fence - is also a particular risk associated with second homes in rural areas.

What are the different insurance options available?

AXA Luxembourg's OptiHome home insurance covers the main risks, such as storms, water damage, fire and theft.

To be protected in the event of a natural disaster - flood or earthquake - you can add the Sérénité Max option to your second-home insurance policy.

What are the common exclusions in second home insurance policies?

At AXA Luxembourg, OptiHome home insurance offers identical cover for both primary residences or second homes. The only exception is valuables. Jewellery, works of art, carpets and collections should not be kept in a second home that is occupied on an irregular basis. Theft of these items is not covered in a second home.

The following are considered to be "valuables":

-       Jewellery and watches with a unit value of more than €750, or a total value of more than €2,500;

-       Period furniture, works of art (paintings, sculptures, etc.), carpets, old books, collections and any other rare or precious objects with a unit value of more than €2,500.

Can I insure my second home with non-occupant homeowner insurance?

If you can use your second home whenever you want, then you are considered to be an owner-occupier.

Non-occupant homeowner insurance is designed for homes occupied by anyone other than the owner. In other words, a home that is rented out (lease) or occupied free of charge (by the owner's children, for example).

Is it possible to take out home insurance in Luxembourg if your second home is abroad?

Home insurance for a second home must be taken out in the country of residence. So if you buy a second home outside Luxembourg, you will need to take out your insurance abroad.

Are you covered if you let someone borrow your second home or rent it out for a short period?

If you make your second home available free of charge to friends or family for a holiday period of a few days or a few weeks, you are covered.

In the case of short-term lets, the civil liability of the occupants will be called into play in the event of fire or water damage in your property during their stay. Remember to ask them for a "holiday civil liability" certificate to check that they’re covered.

Finally, you should be aware that you are not protected if the temporary occupants of your accommodation break or damage your possessions. That is why it’s worth asking for a deposit to compensate you in the event of a problem.

We hope you enjoy your holiday home!