With summer in full swing, now is a good time to make sure that leisure properties and recreational vehicles such as cabins and boats have the right type of coverage. The rise of the peer-to-peer rental market has created some changes in the home insurance industry, and insurance for watercrafts keeps you protected when you’re on the water the same way auto insurance protects you on the road.
Essential Protection for Vacation and Rental Properties
If your property usage patterns have changed since you purchased a cabin or cottage, you should review your insurance coverage to make sure you’ve got the right protections in place.
Basic plan types include named perils coverage that reimburses you for one or more hazards that you identify when you purchase the policy, such as fire, vandalism, theft and specific forms of weather damage.
Comprehensive plans work the other way; they protect you from all possible perils, except those that you elect to exclude from the policy.
Finally, broad insurance policies deliver two levels of protection: one for the physical building and property, and another for the contents of your cabin. This type of coverage is recommended if the items inside your cabin are especially valuable.
Supplementing Your Cabin Insurance Coverage for Renting
Many people rent out their cabins for part or all of the vacation season, and this has emerged as a very popular way for property owners to earn a supplementary income. However, it also creates possible insurance liabilities, and you need to make sure these gaps are closed before you hand your keys over to a renter.
In particular, there are four things that your rental property coverage should address:
Liability for injuries suffered by renters during their stay
All furnishings and interior items used by renters in your cabin
Property damage and losses caused by negligent or destructive tenant behaviour
Extreme weather and disasters, such as floods, fires and severe summer storms
If you’re not sure what is and isn’t covered by your current policy, or if you’ve recently decided to start renting out your cabin, you should consult an insurance professional to discuss your situation.
Also, remember that most renewals are automatic, unless you specifically act to make changes to your policy. If renewal time is coming up, take the opportunity to go over your insurance plan to ensure it still meets all your needs.
Alberta Boat Insurance Basics
In essence, boat insurance functions much the same way auto insurance does. Your policy will cover you for liabilities arising from external property damage or injuries, and you can add additional protections for the craft itself. As with auto insurance, you can also manipulate the price of your premiums by adding deductibles and adjusting the list of items that are and are not covered.
As with cabin insurance in Alberta, you should conduct periodic reviews of your boat coverage. There are also some specific situations that might prompt you to make changes to your existing policy.
When to Review Your Boat Insurance
Insurance professionals recommend that you revisit your boat coverage if the way in which you use your vessel changes. Examples of situations that warrant a boat insurance review include:
New operators. While most types of boat insurance provide default protections if you permit someone else to operate the vessel, exceptions do apply. It’s especially important to review your coverage if you’re going to start using your boat for commercial purposes.
Distant travel. Many policies will only remain valid if you operate your boat within a defined geographic area. If you’re going out of province, review your coverage or contact your provider to see if you need to supplement your current plan.
The completion of training courses. Some providers offer discounts to boat operators that complete training and safety programs. If you upgrade your skills, check with your provider to see if that entitles you to any discounts.
Boat and Cabin Insurance in Alberta: Do You Still Have Questions?
If you’re unsure about any aspect of your Alberta boat or cabin insurance, the experienced professionals at Lane’s Insurance are here to help. Get started by requesting a boat insurance or cabin insurance quote online, or contact a Lane’s Insurance representative for further information.