In­sur­ing

Calgary Herald - Calgary Herald New Condos - - Recreation & Investment 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.

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 part-time oc­cu­pancy.

Post­media/Files

A recre­ation prop­erty can be a source of ad­di­tional in­come as well as a wel­come respite from daily life. But be aware of lo­cal zon­ing and other rules when buy­ing a prop­erty.

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