Seasonal insurance protects homes that owners use only during certain times of the year, such as cottages or cabins, and typically provides named perils coverage. Secondary home insurance protects properties that owners use regularly throughout the year but do not consider their primary residence. Secondary homes often qualify for broader coverage options. For instance, these options include comprehensive or all-risk policies.
If you own a cottage or other vacation property, terms like “seasonal insurance” and “secondary home insurance” may sound familiar. To many, these terms may sound similar. However, these two types of coverage protect different types of properties. Choosing the right policy helps you maintain proper protection. In this way, you avoid gaps in your coverage or paying for insurance you don’t need.
What Is The Difference Between Seasonal and Secondary Insurance?
Seasonal Insurance
Seasonal insurance is designed specifically for a seasonal residence. A seasonal residence is usually used during a certain part of the year. This could be either the summer or the winter. Some examples of this include a cottage in Muskoka used for the summer, or a cabin near Blue Mountain that you only visit in the winter! Compared to a secondary home, these homes will generally sit vacant for most of the year. They generally won’t have full service during periods when they aren’t in use. The risks that come with this are covered by seasonal insurance.
Secondary Insurance
On the other hand, a secondary is for a secondary home! Compared to a seasonal residence, a secondary home is used more often. Some examples of this could be a condo near your office, a home used by a family member or a weekend getaway that you use all year round. Although it is not your primary residence, you will typically use a secondary property more often and maintain it more regularly. Consequently, there will be fewer vacancies. With this comes broader insurance options.
Understanding the differences between these two types of insurance helps you choose the right coverage and protect your property. At the end of the day, seasonal insurance and secondary insurance both cover different risks and have different limits and policy terms.
Feature | Seasonal Insurance | Secondary Home Insurance |
Occupancy | Part of the year | Used regularly year-round |
Property Type | Cottages, Cabins | Condo, second home |
Coverage | Named erils | Comprehensive/All-risk |
Vacancy | Longer periods | Minimal |
Utilities | May not be year-round | Fully Serviced |
Premiums | Lower, but more limited | Higher, more protection |
How Does Coverage Differ Between Seasonal And Secondary Insurance?
In most cases, seasonal homes qualify for named-perils coverage. This means that the policy will only cover specific risks. These could include:
If damage comes from something that is not listed, you will unfortunately not be covered. Seasonal insurance may also limit coverage when it comes to things such as water damage, sewer backup or vandalism. This is especially the case if the property goes months without being visited.
On the other hand, secondary homes can sometimes qualify for policies that offer more flexibility. For example, many secondary homes are eligible for comprehensive or all-risk home insurance. This means that it includes more covered perils and many fewer exclusions. In some cases, your policy may even include replacement costs for personal belongings. Additional living expenses (ALE) may also be included. Furthermore, you may have coverage for other structures such as a garage or shed.
Liability Coverage In Seasonal And Secondary Insurance
When comparing seasonal and secondary insurance, it’s important to note that liability insurance works differently. When it comes to a seasonal home, you may see lower personal liability limits due to it being occupied less throughout the year. A secondary home that you use frequently may require higher liability limits, especially if family members, such as your child or other relatives, regularly occupy the property.
In both cases, liability coverage is crucial. Let’s say someone falls on a slippery path or suffers a bodily injury while visiting. The property owner may still face liability if an accident occurs, even when they are not staying at the property. Both seasonal and secondary property insurance policies should include liability coverage. This coverage helps protect against these risks.
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How To Decide Which Insurance You Need
Though the differences between these two types of insurance are quite big, it can still be difficult to decipher which type of insurance you may need for another property you own. Let’s look at the key factors you and your insurer consider when determining whether a residence is seasonal or secondary.
1) Utilities and Maintenance: If a home lacks year-round heating or water services, insurers may consider it a higher risk. When you have regular maintenance or someone who regularly checks in on the house, you can improve insurability.
2) Renting and Sharing: If you rent out your seasonal or secondary home to guests or tenants, even for short stays, you may need a different type of liability insurance. For example, short-term rental insurance is a popular choice for people who post their residences on sites such as Airbnb.
3) Occupancy Patterns: Seasonal homes that remain vacant for extended periods face a higher risk of issues such as frozen or burst pipes, unnoticed fires, and other damage that may go undetected. Because of these increased risks, insurers may limit coverage unless preventive measures, such as regular property inspections, are in place.
4) Emergency Services: In many cases, seasonal properties may be in a remote area that can be difficult for emergency crews to reach. At the same time, heavy traffic in downtown centres can also affect emergency crews’ ability to reach a home quickly. This, ultimately, affects insurance premiums. If a property is outside a fire district, some insurers may limit protection coverage.
Seasonal And Secondary Insurance: Frequently Asked Questions
Can I insure my cottage as a second home?
It depends on how the property is used. If you regularly occupy a cottage throughout the year, it may be occupied as a secondary home instead of simply a seasonal property.
Is seasonal insurance cheaper than secondary home insurance?
In some cases, seasonal insurance may have lower premiums. This is because it will offer more limited coverage. Your insurance premium can depend on several factors, including your property’s location and the availability of emergency services.
What happens if I insure my seasonal property incorrectly?
If your property is insured under the wrong type of policy, your insurer may deny certain claims. Always disclose how often the property is occupied and whether you are renting it to others!
Does seasonal insurance include water damage?
It depends on your policy. Many seasonal insurance policies limit or exclude certain types of water damage, particularly if the property remains vacant for extended periods.
Securing the Right Protection for Your Second Home
Owning a second property can be an extremely rewarding venture. However, it also carries significant risk. Whether it’s a quiet lakefront cabin or a second residence that is closer to your work, it is important to stay protected. Just like your primary home, a fallen tree, house fire or water damage can turn into thousands of dollars in repair costs.
Your seasonal or secondary insurance policy determines what your coverage includes, what it pays for, and what it excludes. Remember, if you are in the market for insurance, don’t hesitate to reach out to us at isure! Contact us or request a quote today!
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