What your broker needs to know about your seasonal home

From winter chalets to hunting lodges and getaway trailers, Canadians love their seasonal homes.  A seasonal home is an investment that can be challenging to protect from an insurance and risk management perspective because many seasonal and secondary dwellings are located in another province or in remote areas, and some are rented when they’re not in use by the owner.

There must be an understanding between the client and broker as to what seasonal really means to them. It’s important not to confuse a secondary home with a secondary seasonal home because they differ in terms of and therefore have different insurance needs.

For a true seasonal home, like a property in use from May to October, insurance coverages would be limited to Named Perils or Fire & EC and the settlement would be on an actual cash value basis. Liability is restricted to the premises only, vandalism/malicious act and theft is excluded, and water damage is excluded during months of un-occupancy.

Seasonal homes can range from a small travel trailer to a more expensive property. Seasonal dwellings would mostly be of a lower value than year-round dwellings as they tend to be smaller and more like a small chalet or a hunting/fishing camp. It’s important your broker detailed specifics about intended use when helping clients purchase seasonal home insurance for the first time. Such information includes:

  • How often is the residence used?
  • What type of building is it?
  • Is there road access all year round?
  • Is there a heating system or heat source like a wood stove?
  • Is there plumbing in the dwelling?
  • What is the fire protection?
  • How remote is the property?

Like all insurance coverage, there are factors that affect the premium. The location and type of building are important. For example, coverage for a log home would be more expensive than other types of dwelling. Other factors like fire protection and heating type can also play a part in the affordability of the coverage. If you have questions about insuring a seasonal property, the brokers and CSRs at DPM Insurance Group are always here to help.

Source: insurancebusinessmag.com

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777