Have you just purchased a cottage, or do you already own one? The following could help you determine the right insurance coverage for your seasonal home.
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Do you have a spa, sauna or swimming pool? Be aware that these kinds of property and their accessories are never insured under your home insurance contract, irrespective of the insurance you carry. If you wish to insure them, you must take out a separate policy in the form of a rider that will specifically cover them.
The same applies to snowmobiles or all-terrain vehicles. You must take out a car insurance policy that will protect you in the case of an accident or theft. In this regard, remember that in order to drive such vehicles you must hold a civil liability insurance policy of at least $500,000.
To learn more about off-road vehicle insurance, click here.
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Limited coverage for certain kinds of property
Home insurance policies, including those for cottages, provide limited coverage for certain kinds of property. This means that in the event of a claim, a maximum amount would be reimbursed to you.
Some examples in the case of a cottage are:
- Boats, pedal-boats, rafts and their accessories: $500 to $1000 (depending on the contract)
- Trailers and garden tractors: $5,000
- Bicycles (in case of theft only): $500 to $1000 (depending on the contract)
- Outbuildings (tool or garden sheds): the insured amount is equal to 10% of the amount stipulated for the building. This amount is listed under the "Special Conditions" section of your policy.
Click here to find out about the claim limits of most homeowners' insurance policies.
If you feel that these amounts are insufficient, it is possible to increase them.
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Which contract covers the loss of your property?
When you have a principal residence and a cottage, you often have to transport personal belongings for your stay in the country. If these goods you are transporting are stolen or damaged, you must claim the loss against the home insurance policy you carry on your principal residence.
However, any loss or damage related to property that remains at your cottage on a permanent basis would be claimed against the insurance policy you have for your cottage.
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Questions? Advice?
The appeal of life in the country has led to a significant increase in the number of people who now own a secondary residence.
Apart from this, these vacationers do not share too many similarities, since the design of their vacation homes, the furnishings they choose and the nature of the activities they enjoy can vary significantly. That is why it is so important to discuss your specific situation with your insurer or broker; you want to ensure that your oasis of peace and everything you have invested in it are adequately protected.