ECONOMICS
SIMPLE
Your first cottage insurance policy: What you need to know
Cottage insurance
Owners of new cottages should consider taking out cottage insurance. In general, this coverage is referred to as seasonal home or cottage insurance. To better understand the level of coverage and the type of protection it offers, here are some clarifications on the subject, as well as advice and answers to questions for owners wishing to take out such insurance. cottage insurance.
How do you insure your second home or seasonal residence?
Before purchasing cottage coverage, it's important to determine whether the property is a secondary or seasonal residence. It's a good idea to discuss this with your insurance broker or representative. Here are a few points to clarify with an insurer:
- Seasonal residence
It's important to know the criteria for deciding whether a cottage is a seasonal or secondary residence. You need to know whether the residence is accessible at all times, or whether it is accessible on a seasonal basis, with 2 or 3 visits scheduled each year. This information can be used to classify the property as a seasonal or secondary residence.
- Second home
When we speak of a second home, we're referring to a dwelling occupied regularly throughout the year. This is the case, for example, of a chalet used on weekends or several days a month.
What insurance coverage do I need?
It's essential to ask your insurance broker or representative about the coverage available for each type of residence.
Seasonal residence insurance
Generally speaking, insurance for a seasonal residence can be less expensive than that for a second home. This is because coverage is linked to only a certain number of risks. These include fire, windstorm, lightning and hail. Given that the home remains unoccupied for much of the year, certain risks are not covered. These include theft, vandalism and frozen pipes.
In view of this particularity of coverage, it is important to take sufficient precautions with such a residence. You need to be vigilant, and avoid leaving valuable possessions and equipment in the house when it's unoccupied. It's also a good idea to drain the pipes before winter. And if necessary, don't hesitate to add additional guarantees to better cover your seasonal residence.
Second home insurance
If the owner regularly occupies his or her cottage, he or she can take out insurance with the same coverage as for a principal residence, with the added option of customizing coverage to suit the secondary dwelling. It is even possible to take out more comprehensive coverage, commonly known as "all-risk", provided you meet the insurer's eligibility requirements. These include regular, year-round occupancy of the cottage, compliance with building standards and non-rental of the property to a third party.
It's quite common for insurers to ask the insured to take out coverage for a principal residence before covering a secondary or seasonal residence. In the end, this constraint can prove to be a blessing, especially in the event of a claim.
Rent your cottage
Rent a chalet, whether as a seasonal or holiday home, is not acceptable to most insurers. But it's not impossible. The trick is to inform the insurer so that coverage can be adjusted accordingly.
Special chalet features
It's important for any homeowner to specify the particular features of their cottage when shopping for seasonal or secondary home insurance. Among the features to specify are :
- Proximity to a lake or river
- Are there neighbors nearby, and how far away are they?
- The geographical area where the chalet is located and the surrounding environment (forest, village, etc.).
- The level of use of the habitat
- Regulations in force in the surrounding area, especially concerning fire, animals, etc.
- Easy access
- Local activities such as fishing, swimming, skiing and more.
- The heating system and equipment used.
By filling in the broker or insurance representative on the particularities of the residence, this will enable it to offer coverage better adapted to the needs of the habitat and prevent any unforeseen events.
Equipment coverage
It's important to insure the equipment in the chalet. This can be equipment used for the functionality of the premises or for leisure. These include a rowboat, pontoon, spa, kayak, pedal boat, skis and outdoor fireplace, among others. By informing the insurer of such equipment and property, the owner can benefit from more appropriate coverage to protect the objects within the residence.
Onerous but important
It should be pointed out that protection for second homes or seasonal residences costs more than for other types of property. expensive than insurance as their main residence. This is because cottages are more exposed to various risks, as they are not always occupied and are often located in remote areas.
Transporting goods to a second home or seasonal residence
Many people choose to carry a lot of equipment and belongings every time they travel to the cottage. These items are covered by the main home insurance policy. Nevertheless, it's a good idea to discuss the matter with your insurer for reassurance.
