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.