Holiday Home Insurance: How to Insure a Secondary Residence

Picture this: You're relaxing at your lakeside cabin in the Okanagan or your cozy mountain retreat in the Kootenays. The stress of everyday life melts away as you enjoy BC's natural beauty. However, you might wonder what happens when you’re not there.

Most vacation homeowners don't realize their property faces unique risks when they're away. The insurance that works for your main home won't cut it for your getaway spot. Getting this wrong could cost you thousands—or even your entire investment. Learn more about how to protect your vacation home with insurance.

Essential Vacation Home Insurance Tips

• Never assume your normal home insurance covers your vacation property—it probably doesn't.
• Standard policies don’t cover vacant properties longer than 30 days.
• If your vacation home is a condo, don't forget condo insurance.
• If you’re renting the property out, regular insurance won't help if renters damage it.
• Outbuildings like boathouses and docks need additional coverage—they're not automatic.

Your Vacation Home Isn't Like Your Regular House (Insurance-Wise)

Your vacation property sits empty much of the time. That's the biggest difference from your primary residence, and it matters to insurance companies.

Think about it: If a pipe bursts in your primary residence, you'll notice right away. But at your vacation property, that small leak could go undetected for weeks, causing massive damage before you return.

How frequently you stay at your vacation home determines what coverage you need.

Most standard homeowners insurance policies limit coverage when a property sits vacant for more than 30 days. After that, you might not have coverage for water damage, vandalism, or theft.

Here's an example: You own a cabin near Shuswap Lake. You visit monthly in summer but leave it empty all winter. When a pipe freezes and floods the place in February, your claim is denied because your regular policy excludes water damage after 30 days of vacancy.

The Biggest Risks Your Vacation Property Faces

BC vacation homes face special risks your city home doesn't.

Seasonal properties often sit in remote areas where emergency services take longer to reach you. A small fire can become a total loss before help arrives.

Weather hits harder, too. Those beautiful mountain or lakefront locations face stronger winds, heavier snow loads, and greater flood risks.

Learn more about what’s typically covered and what isn’t.

What Does Cottage Insurance Usually Cover?

• Fire damage
• Lightning strikes
• Wind damage (basic)
• Explosion
• Smoke damage

What's Usually Not Covered by Cottage Insurance?

• Water damage from frozen pipes
• Flood or sewer backup
• Vandalism when vacant
• Theft during extended vacancy
• Damage from renters

Never assume standard coverage will protect you from BC's seasonal risks! Standard policies exclude the very things most likely to damage your cottage.

Missing coverage for these risks isn't just an inconvenience—it's a financial disaster waiting to happen. A typical water damage claim averages well over $10,000 in British Columbia. You don’t want to have to pay that out of pocket.

Figuring Out What Insurance Coverage You Need

Getting the right secondary property insurance coverage depends on how you use your property, whether you use it occasionally or frequently or rent it out on Airbnb.

For personal use only, you need:

• Seasonal property insurance (handles vacancy periods)
• Higher liability limits (for guests)
• Contents coverage for items stored there year-round

For occasional rentals, add:

• Short-term rental endorsement
• Extra liability protection
• Loss of rental income coverage

For regular rentals, you need:

• Landlord insurance policy
• Comprehensive tenant screening
• Business income loss coverage

Quick check: Consider how much it would cost to completely rebuild your vacation home today. Most owners guess way too low. Construction in remote BC locations costs significantly more than in urban areas.

List everything you keep at your vacation property year-round. Furniture, kitchenware, recreational equipment, electronics. Now, estimate replacing it all at today's prices. You might be surprised by the total.

Do you have the right coverage to claim full repair or replacement costs?

Get the Right Insurance When Renting Your Property

Perhaps you’re thinking of renting your Kelowna condo or Tofino beach house when you're not using it. To do so, you need the right insurance.

Standard home insurance policies exclude damage caused by renters. (This is important because BC's short-term rental regulations mean you can only operate an STR in your primary residence.) That means if your Airbnb guest leaves the hot tub running and floods your property, you're on your own without proper coverage.

Some companies won't cover rental properties at all. Others limit rentals to 30 days per year. Go beyond that, and you void your coverage entirely.

If you’re planning to rent out your home, tell your insurance company before you list it anywhere. The small premium increase for rental coverage costs far less than a denied claim.

Don't forget about liability. If a renter gets hurt on your property, they could sue you personally. Rental coverage includes higher liability protection specifically for this risk.

Those "Extra" Things Most Policies Don't Cover

That beautiful dock at your lake house may not be automatically covered.

The boathouse where you store your canoes is probably excluded from standard coverage.

Your ATV or snowmobile definitely needs separate insurance.

Vacation properties often have "extras" that need specific coverage:

• Detached structures (boathouses, sheds, guest cabins)
• Docks, wharves, and marine structures
• Outdoor equipment (boats, ATVs, snowmobiles)
• Expensive sporting gear (fishing equipment, bikes, skis)
• Flood risk for waterfront properties

These items need to be specifically listed on your policy. If you don't mention them, they don't exist in the insurance company's eyes.

Let's be real: BC vacation living happens outdoors. That's probably why you bought the place! Make sure your coverage protects what you use and enjoy.

The Replacement Cost Reality Check

Here's a big mistake vacation homeowners make: Insuring for market value instead of replacement cost.

Market value is what you could sell your property for. Replacement cost is what you'd pay to rebuild from scratch. These numbers are rarely the same—and the gap can be huge.

For example: A basic cabin on a great lake might sell for $800,000 because of location. But rebuilding that same cabin might cost $350,000. On the flip side, a custom-built mountain home worth $600,000 might cost $850,000 to rebuild due to the remote location and special materials.

Always insure for what it would cost to rebuild. Otherwise, you're either wasting money on extra insurance premiums or dangerously underinsured.

Never rely on your purchase price or current property assessment to determine coverage amounts! These numbers don't reflect true rebuilding costs, especially in remote areas.

To determine rebuilding costs, ask a local builder what construction currently costs per square foot in your specific area. Multiply by your property's square footage, then add 15%–20% for debris removal and design fees.

Save Money Without Cutting Important Coverage

You can lower your second home insurance costs without sacrificing protection. Many insurance companies will give you discounts if you install safety features.

Install a centrally monitored security system that works year-round. This can cut premiums while protecting your property when you're away.

Consider higher deductibles. Raising from $500 to $1,000 might save 10% on premiums. Just make sure you keep that amount available in savings.

Bundle policies with the same company. Having your primary home, second home, and vehicles with one insurer can give you a discount. 

Visit regularly and document these visits. Some companies offer lower rates if you check your property at least monthly.

Additionally, ask yourself what services are nearby before you buy a vacation home. Properties within 5 kilometres of a fire station often qualify for lower rates. If you're farther away, focus on fire prevention measures to offset higher premiums.

One important tip: Don't drop water damage coverage to save money! It's one of the most common claims, especially for seasonal homes. It’s better to raise your deductible than eliminate this crucial protection.

Keep Your Policy Working: What You Must Do

Insurance isn't "set it and forget it." Your policy requires you to maintain your vacation property or risk denied claims.

Most vacation property policies require regular checks when the property is vacant. This might mean weekly or monthly visits, depending on your policy.

Winterizing is mandatory, not optional. Drain pipes or keep minimal heat going (usually at least 10°C). Skip this step, and frozen pipe claims will be denied automatically.

Document your property's condition and contents:

• Take dated photos of each room twice yearly.
• Keep receipts for major purchases and improvements.
• Make a video walkthrough showing everything in working order.
• Store these records away from the property (cloud storage works great).

Picture this: your policy requires monthly property checks, but you skip winter visits due to difficult road conditions. When spring arrives, you discover frozen pipe damage that caused extensive mould. Your claim is denied because you didn't fulfill the visitation requirement.

If you can't personally check your property as often as required, hire a property management service or ask a trustworthy neighbor. The small cost beats a denied claim.

Next Steps to Protect Your Vacation Property

Your BC vacation home is meant for making memories, not creating headaches. The right insurance gives you peace of mind so you can enjoy your investment.

Start by calling your current insurance provider. Ask specifically about their vacation property coverage and what exclusions apply. Don't be surprised if you need a different policy altogether.

Be clear about how you use the property and be honest about vacancy periods. Wrong information here can void your entire policy.

Consider getting quotes from companies that specialize in seasonal properties. They often have better coverage options than standard insurers.

Schedule a yearly insurance review. Property values, rebuilding costs, and how you use your place can all change. Your coverage should keep pace.

Remember, vacation property insurance is about protecting your special place. When you're relaxing at your BC getaway, the last thing you want to worry about is whether you're properly covered.