Advice for potential rec properties purchasers
Some advice for owners of recreation properties, as well as for people considering making a purchase: pied 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 part-time occupancy. that existing property for up to 90 per cent of its value and get an insured mortgage to purchase another vacation home.
A home equity line of credit makes use of the equity built up in your primary residence to let you borrow up to 75 per cent of the value of the home less the debt still owing on it.
You will need to have an up-to-date appraisal done to determine the home’s current value. accounting records. Also, arrange for someone to handle cleaning, emergency repairs, or any check in difficulties that your guests may experience. property, the more likely they will give up and choose an easier target.
Turn off water and electricity before leaving a property for an extended period.
Don’t leave valuables in an unattended property. Also avoid leaving items such as liquor, hunting rifles and expensive equipment behind.
If possible, install an alarm system that is either monitored or programmed to notify you in the event of a break-in or other emergency.
Consider joining — or starting — a crime prevention program such as Rural Crime Watch.
Clearly label any possessions left on the property with non-removable stickers.
Inform local police or RCMP when the property will be unattended, and periodically contact them to find out if there have been any security issues near your property.