Whether it's for a long weekend or an overnight stay, many of us choose to retire for some much-needed R&R at a cottage somewhere serene. When seeking the peace of mind you so very much deserve, the last thing you want is for a catastrophe to spoil your time away from all the stress. That is why it's important to ensure you are properly insured at your recreational property. Whether you use that property year-round or seasonally, these details define the type of insurance coverage you need.
Questions to ask yourself
Insurance for a vacation property works differently than insurance for a primary residence. So, it's crucial that you ask yourself the right questions. These include:
- How am I using the vacation property and how often is the property occupied?
- How much time do I spend at my vacation property?
- Do I use this property year-round?
- Do I rent my property to guests?
Knowing the answer to these questions will help your insurance provider determine the type and amount of coverage you need.
Details worth noting
Did you know that you can include your vacation property on your home insurance as a secondary or seasonal location? In this way, you can insure the property separately in your insurance policy. Also, since you would occupy your vacation property on a part-time basis, coverage for certain risks, such as water damage or vandalism, may be more difficult or expensive to arrange. For instance, if a water pipe bursts in your cottage or vacation home while it is unoccupied, the damage is likely to be more severe because no one will be there to discover the problem. Moreover, some property risks aren't covered in insurance policies for secondary homes. These include sewer backup, damage to or loss of food in a freezer, garden equipment, outdoor plants, trees, and shrubs.
Named perils vs. comprehensive policy
Because most cottages and vacation properties are occupied seasonally, coverage is usually limited. Vacation property insurance in most cases is provided on a named perils policy rather than a comprehensive policy.
|
Named Perils Policy |
Comprehensive Policy |
|---|---|
|
This type of policy covers specific risks stated in your policy, such as fire, explosion or smoke damage. |
This type of policy covers both the building and its contents against all risks (except for those specifically excluded in the policy). |
Choosing NFP can save you time
With so many options out there, choosing the right insurance coverage can be confusing and time-consuming. For this purpose, you need a knowledgeable and well-versed partner by your side to help you navigate the available options. This is where NFP comes into the picture. Our expansive reach gives us access to highly rated insurers, vendors and financial institutions in the industry, while our locally based employees tailor each solution to meet our clients' needs. We've become one of the largest insurance brokerage, consulting and wealth management firms by building enduring relationships with our clients and helping them realize their goals.