Holiday Home Insurance Ontario

Vacation home insurance is generally very similar to that of your primary residence insurance. It protects the cottage, your belongings and your assets. However, the main difference is that the rate for home insurance on a vacation home is typically higher due to an increased risk of claims. 

The following are factors that typically affect your insurance premiums:

• How long your vacation home is vacant for.

• Where the vacation home is located.

• If you plan to rent it out

Secondary homes are often vacant for large periods of time, which means it’s more open to break-ins, vandalism, and damage from a leak, fire, or even infestation, that may go undetected for some time. Also, vacation homes such as waterfront homes incur higher insurance rates because they are at a higher risk of damage from windstorms or hurricanes.

Lastly, if you plan to rent out your vacation home throughout the months you are not using it, you’ll need to purchase additional short-term rental insurance to safeguard you and your home from any loss, damage or liability claims.

A secondary home is precisely what it sounds like — a second home. Even though it’s not your primary residence, it’s a home you still plan to occupy throughout the year, such as on weekends, holidays, or as a place to stay for out-of-town business. A secondary home is a property you purchase purely for your enjoyment. You do not rent out the house when you are not using it.

As for seasonal homes, these are primarily used for recreational purposes such as vacations and holidays during certain parts of the year. Think of people we call “snowbirds” who travel down to Flordia in the winter as a great example of someone who has a seasonal home. These homes are often located quite some distance from their primary residence. Also, people who own vacation homes often rent them out throughout the rest of the year when they’re not using them to produce additional income.

While there are a lot of similarities, there are a few differences between seasonal home insurance and holiday home insurance:

The R&R Plan seasonal cottage insurance plan offers a replacement value — new for old — on buildings and possessions. Your cottage and belongings are protected from fire and extended perils, including storm damage, theft, vandalism, building collapse and much more. Most significantly, you can strengthen your R&R Plan seasonal cottage insurance plan by adding extra protection at no additional cost, thanks to its unique single-limit protection. This is a must for all cottagers!

For people who enjoy their cottage throughout the winter, summer, spring and fall months, the R&R Plan cottage insurance policy has you covered for all seasons. Your plan will cover your holiday cottage and outbuildings for all risks of loss or damage. Your holiday cottage insurance provides guaranteed replacement costs, so you can relax and rest assured, knowing that your R&R Plan holiday home insurance policy safeguards your items with replacement. Your items are insured for fire, storm damage, and extended perils. Also included in your holiday cottage insurance plan is any damage caused by bears, raccoons, and squirrels.

Seasonal home insurance generally covers your property and its contents and includes liability coverage in the case of any third-party claims due to injury or property damage on your property.

Here’s a quick breakdown of our R&R Plan seasonal cottage insurance plan:

Provides coverage against: 

• Fire damage 

• Storm damage 

• Theft and vandalism 

• Building collapse 

• Damage from bears

• Liability coverage available for up to $5,000,000 

• Protection for an outbuilding, decks, and docks without any additional costs.

If you plan to rent out your seasonal cottage home when you’re not using it, you’ll want to get our short-term rental insurance, which provides coverage for up to six months. This will cover:

• Personal liability protection should a third-party injure themselves on your property 

• Owner’s liability protection against loss or damage caused by your watercraft

• Rental income protection against financial loss due to damage or insured peril  

Also, keep in mind when applying for seasonal cottage insurance that the following is not typically offered in standard cottage insurance plans:

• Septic backup and flooding 

• Earthquakes 

• Fuel oil release 

• Damage or complete loss of motorized vehicles, campers, and trailers

• Buildings used for farming or other business purposes 

To ensure you are fully protected from these forms of damages, don’t forget to talk to your insurance specialist at R&R Plan about our additional coverage options available to you.

The type of coverage you will need will depend on how you plan to use your vacation home. If you are planning to use it as a holiday or secondary home, you will want to get secondary home insurance coverage. However, if you are planning to use your vacation home as a seasonal property, you can get seasonal cottage insurance coverage. Also, if you are planning to rent out your seasonal cottage when not in use, make sure you get our short-term rental insurance to protect your home from loss, damage or liability.