Do research before buying
Some advice for owners of recreation properties:
Types of recreation properties available in Canada: Apartment-style suites; Townhomes; Chalets; Recreational vehicle (RV) lots;
Fractional-ownership hotel/resort-style properties; Islands; Acreages; Cabins; Waterfront properties. Things to consider when choosing a recreation property:
What do you plan to use it for? Will it be strictly for recreation? Are you investing for eventual return on investment, or as a deferred retirement residence?
How often do you plan to use the property? Is it located close enough that you can visit regularly (on weekends) or is it farther away?
What do you want to do with the property when you aren’t occupying it? Are you interested in rental pools, fractional ownership, or both?
Research the locations you wish to consider, and consult with realtors and others who are familiar with the area. Be aware of any zoning or legislation that might have an impact on your goals and budget.
Make a list of your most important questions and take it with you when visiting properties.
From The Insurance Bureau of Canada at www. ibc.ca:
How the vacation property is used and how often it is occupied will dictate which insurance packages are appropriate for you.
How much time do you spend there? Do you use it year-round? Do you rent it out at some point during the year? The answers to these questions are important when you are considering what type of coverage to buy.
Most insurance companies will consider providing insurance for your vacation property only if you insure your primary residence with them as well. You can have your vacation property listed on your home insurance as a secondary or seasonal location, or you can have insurance for the property as a separate, stand-alone policy.
Vacation property insurance is almost always provided as a “named perils” policy, instead of a comprehensive policy.
Named perils means you have insurance coverage for specific risks, such as fire, explosion or smoke damage.
Coverage for certain risks, such as water damage or vandalism, may be more difficult or expensive to arrange, because of the parttime occupancy.