In Canada, we are lucky to have distinct seasons, each offering different ways to enjoy ourselves with family and friends.
The warmer months are synonymous with heading out to the cottage and enjoying water activities like swimming or spending an afternoon on the boat. It’s also the ideal time to bring motorcycles and classic cars out of storage to enjoy the open road.
But when the colder months arrive, we close our seasonal properties and store our seasonal vehicles. One way to ensure they are protected until the following year is to have the appropriate insurance coverage that is tailored to your individual needs.
Seasonal home insurance coverage
The insurance needs of a seasonal property are vastly different than the insurance coverage you would need for your primary residence. Typically, they are considered higher risk because these homes are not inhabited all year round.
Any damage or theft that may occur may not be detected right away and could be a lot worse by the time you realize there is an issue or repairs are needed. Because of this, insurance companies will often allow you to add specific “named perils” for fire or water damage or “separate protections” for theft, to your existing insurance policy.
According to the Insurance Bureau of Canada, there are several factors to consider when deciding the best insurance coverage for your seasonal home. Some things insurance companies may consider when creating your additional policy are how your home is used and how often it will be occupied, location or how remote it is, the homes use as a rental property, and if are there any outbuildings (boathouse, garage) that also require coverage.
While third-party liability coverage is essential, any additional insurance coverage or policies should not be decided on lightly as these policy add-ons need to be customized and specific to your individual needs. You don’t want to find yourself in a situation where, for example, you thought you were covered for damage by animals or septic tank leakage, only to find out later you are not covered. This is why it is important to sit down with your insurance professional to create a policy that best protects you.
Seasonal vehicles and insurance coverage
According to the Insurance Bureau of Canada, Canadians who only drive their classic cars, motorcycles or RVs during the summer months should still have comprehensive year-round insurance coverage, despite these vehicles being in storage for the majority of the year.
Having insurance coverage means your vehicle will be protected from fire, theft and other damage that can occur while in storage. Keep in mind, however, that some coverage is not needed while in storage such as liability and collision benefits.
Also, ask your insurance provider if you qualify for any additional discounts. You could see savings if you combine your home and vehicle insurance, if you are a senior or retired, or if you will only be using your seasonal vehicle for short commutes.
With the number of insurance options available, it’s a good idea to contact your insurance representative to see how you can customize your current policy for optimal protection.
For information on seasonal home and vehicle insurance, or for a competitive quote, click here.
Source: Guelph Today