Have you reached a point where you’re tired of winter in Canada? Are you ready to spend the blistering cold months somewhere more tropical? Are you ready to become a snowbird? We get it! Winter is not for everyone, and the allure of spending it elsewhere is understandable. Fortunately, you’re not alone. Every year, thousands of Canadians leave their province and relocate to warmer climates. But you should be aware that it’s not as easy as declaring you’re a snowbird and then jumping on a plane. So, we’ve gone through everything you need to know about becoming a snowbird below.
How long can you be a snowbird?
If you plan to head to the United States for the winter, you can stay for approximately eight months or 243 days in a 12-month year. If you stay any longer than that, you may get labelled with a ‘resident alien’ status, with taxes and Form 8840, better known as the Closer Connection Exception Statement for Aliens. The IRS does have some flexibility for snowbirds, but it can be tough to navigate. It’s also important to note that the 243 days can be all in one shot or an accumulation of days, so if you spend any other time in the country (even if it’s just a single day), that counts towards your 243-day total allotment.
Can you keep your provincial health insurance if you’re a snowbird?
To keep your provincial health insurance, you’ll need to spend a significant amount of time in your home province. For Ontario in particular, no more than 212 days outside Ontario in any 12 months if you have lived in Ontario for more than six months. No more than 30 days outside Ontario if you have lived in Ontario for less than six months. OHIP does not insure or pay for all out-of-country medical services. Also, the amount of funding provided by OHIP will not usually cover the full cost of any health services that you do obtain outside of Canada. Your OHIP covers only very limited amounts for hospital, health facility and physician services outside of Ontario and Canada. OHIP does not pay for ambulance services, transportation costs or out-of-hospital food/accommodation/drugs or prescriptions. It is important to note that this can differ depending on which province you are from!
Should snowbirds purchase travel insurance?
Yes, 100%! As a Canadian, you may not fully realize the sticker shock that comes with American healthcare. For example, a simple visit to the emergency room can cost you $5,000 = $10,000+. Serious accidents, such as a heart attack, stroke, surgery or a stay in the ICU, can easily exceed $100,000. Without travel insurance, you will be personally responsible for all costs that aren’t covered by OHIP. Since OHIP only offers limited coverage outside of the country, you may be stuck paying a large portion of your medical bill/
So, don’t take a risk on your health, and instead invest in a high-quality travel insurance plan. Travel insurance is an absolute necessity, especially for such a long duration out of the country. To compare the rates of the top travel insurance companies, request a quote through isure! Our simple system will show you many different examples and rates to help you find the best medical and trip cancellation coverage for your trip.
What About My Home Insurance Coverage?
If you’re away from home for a long time, some home insurers will have more measures you need to take. Failing them can result in lost home insurance coverage. Speak with your isure broker to know for sure, but a common rule is to have a family member do regular stop-ins and inspections while you are away.
Should I Suspend My Licence While I’m Away?
Whether or not you should suspend your licence while you are away is entirely up to you, as it depends on the circumstances. However, in most cases, it really isn’t necessary or recommended to suspend your licence.
Keeping your license up to date can be very handy when you are staying in the U.S., as your license is a legal requirement for residency. Even though you may be in the U.S. for an extended period of time, you are still considered a resident of Ontario. Due to this, you’re going to want to maintain a valid licence as well as an OHIP card on you to confirm your residency. To add to this, your license also serves as a convenient form of identification, both while travelling and in case of emergencies.
It is also important to keep your licence valid while away for insurance purposes. If you suspend your licence, your auto insurance in Ontario could potentially be affected, or even worse, cancelled. At the same time, some insurance companies consider a lapse in licensing a risk factor, which could increase your premiums when you reinstate your coverage.
At the end of the day, it’s always recommended to keep your licence. You never know when/if you may need to return to Ontario unexpectedly. Having an active licence ensures you can legally drive upon your return.
What About My Car Insurance?
When you go on vacation, your insurance for your home remains the same. This is done if something happens while you’re gone, such as a break-in. But what about your car insurance? Well, in many cases, people tend to suspend their car insurance coverage. Suspending your auto insurance coverage will temporarily reduce your coverage, usually by at least 45 days. This is done through what is known as an Ontario Policy Change Form (OPCF) 16. In the end, this results in lower premiums while you are away.
It is important, however, to note that there are some downsides to this. For example, if a family member or friend wants to drive your vehicle while you’re away, it won’t be protected, so they would be unable to. To add to this, you won’t have any protection against non-driving incidents. So, if your car gets broken into while you’re away, you may end up paying out of pocket.
It’s always important to contact your insurer and get informed about their policies when it comes to suspending your insurance coverage. In some cases, many insurers view this as a cancellation, so you may have issues getting insured in the future. On the same note, some insurers may raise the price of your premiums for suspension, or, alternatively, charge a fee to do so.
Where should I go?
If your goal is to escape winter, as is the case for most snowbirds, then the southern states in the USA should be your destination. Historically, snowbirds fell into the retiree demographic; however, according to vacationrenter.com, the ditch-the-cold-for-a-month-or-more life is no longer reserved just for Nana and Grandpa. With remote work still in play, younger birds are also spreading their wings in search of rising mercury.
Vacationrenter.com has compiled a list of the seven best under-the-radar snowbird vacation destinations that won’t break the bank:
1. Tybee Island, Georgia
2. Pawleys Island, South Carolina
3. McAllen, Texas
4. Anna Maria Island, Florida
5. Princeville, Hawaii
6. Prescott, AZ
7. Twentynine Palms, CA
Where can I get more information about being a snowbird?
The CSA (Canadian Snowbird Association) has a continuously updated section of its website. They also offer a simple Travellers Checklist that will ensure you have all your needs in order. For further questions on being a snowbird and what that means for your travel and home insurance coverage, give us a call at isure today!
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