We own a camp used primarily during the summer. Can it be covered under our home policy?
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Asked July 27, 2010
Your home policy is not going to cover buildings or property that are on a different piece of land. For each dwelling, even a vacation camp or cabin, you should seek individual insurance coverage. Insuring a vacation camp will not be as expensive as insuring your home in most cases, because it will not be as fully furnished, or have a complete range of home appliances. Speak to your insurance agent about your situation and ask what options are available.
You may be able to secure a rider for your home policy that is written specifically to include your camp property. This would increase your premiums a small amount, but it would provide the needed coverage. Keep in mind, though, that you will still have a single limit for claims, and a major catastrophe that destroyed both locations may not pay out enough to rebuild both the home and the camp location. For the best coverage, a second insurance policy is your optimum solution.
If the camp is used for a commercial purpose, such as a summer camp for kids, you should look into commercial insurance rather than home coverage. Home insurance is intended for single family, single use dwellings and would not be suitable for the increased liability involved in operating a business at the property.
Answered July 27, 2010 by Anonymous