Ad­vice for po­ten­tial rec prop­er­ties pur­chasers

Calgary Herald New Condos - - New Condos -

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.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.