Insurance for cottages, camps and other vacation properties

Insurance for cottages, camps and other vacation properties
 

 
Your vacation home, like your primary residence, is one of your most valuable possessions. It is therefore important to protect your investment by insuring it. However, insurance for vacation properties is slightly different than for your primary residence.

What use do you make of it?

Which insurance to choose depends on how you use your vacation home and how long you spend there. Do you go there often? Do you use it all year round? Do you rent it from time to time during the year? These are important considerations when choosing the type of insurance to purchase for your vacation property.
Various insurances for your vacation property

Most insurance companies will only agree to insure your vacation property if you also insure your primary residence with them. You can add your vacation home to your primary residence policy as a “secondary” or “seasonal” residence, or you can purchase a separate policy for your vacation home.

The main difference between insurance for your primary residence and your vacation home is that the latter is almost always named risk insurance rather than all risk insurance because the risks are different when a house is not occupied. that from time to time. "Designated risk" insurance means insurance that covers specific risks, such as fire, explosion or smoke damage. Insurance against certain risks, such as water damage or vandalism, may be more difficult to obtain or more expensive because the house is only occasionally occupied. If there was a water leak, for example, or vandals entered your vacation home while it is unoccupied, the damage would likely be greater because there would be no one on hand to remedy. to the situation.

Insurance policies for second homes generally have certain exclusions. Common exclusions include sewer backups and damage to:
the fences
food in a freezer
garden equipment
outdoor plants
trees and shrubs
Even if your vacation home is an “old shack” of little value, you will still need liability insurance to protect you in the event someone gets injured on your property or if you start a fire that spreads to the people. neighboring properties.

It might also be useful to consider the following insurances:

Personal Property Insurance: Some vacation property insurance policies automatically include personal property insurance up to a certain limit. This insurance covers movable property that remains in the holiday home permanently. (Anything you take with you - your clothes, for example - is covered by your primary residence insurance policy.) If the insurance is not sufficient, you can purchase additional coverage.
Outbuildings: Some vacation home insurance policies include a certain amount for outbuildings, such as boat houses, garages or garden sheds. However, you may need more insurance to be fully protected.
Replacement value guarantee: this type of insurance covers the cost of repairing an item or replacing it with a new item, without deducting depreciation.
For more information on the options you have to insure your vacation property, please contact your insurance representative.