How to insure a property or vehicle in the US
Whether it’s a warm retreat to escape the frosty winter months, or a cosy cabin somewhere in the mountains, the popularity of owning a home in The US is on the rise. In fact, more than 500,000 Canadians currently own property in Florida alone. Additionally, whether for day trips to local tourist hotspots, or just to grab some extra groceries, you might decide to keep a car at your home away from home. Regardless of whether you own a home or a car in The States you definitely need to consider your insurance options. Are you able to simply include an extra asset in your current policy, or do you need to consider taking out a new one?
Property
While your insurance company may be ideal when it comes to your day-to-day residence, they might not be the best option for your second home. For a start, there is a chance they won’t provide the right kind of insurance coverage for you. This is because insurance in The US is highly regulated and companies must apply to do business on a province, state or territorial basis.
While some big name, international insurers are able to work around the world; smaller companies prefer to work in only one location.
Insurance for a second property or vacation home can actually end up being higher than your regular home insurance, mostly depending on how often the property is occupied. If your property is only used seasonally and left unoccupied for large chunks of time, it becomes vulnerable to threats such as theft, vandalism and damage from weather. Picture this: you come back to your property at the end of winter only to discover a pipe froze and consequently burst while you were away. Had you been there at the time, you could’ve caught it in the early stages, but with time the problem only grows. That’s a headache for you and your insurance company.
The age and location of your property also plays a role in how much your premiums will set you back. While your rustic barn conversion may be a peaceful, country retreat, if it’s far from emergency services or at risk of being damaged by extreme weather, you’ll probably pay for it.
And what about the contents of your property? Does your US condo house any valuable or sentimental assets? In that case you might want to think about the financial implications a loss of any of these items may cause, and determine whether adding contents insurance makes sense for you.
Finally, you should also think about some additional safety features. If a visitor trips and falls on your front step, or an accidental electrical fire causes damage to neighbouring properties, you could face being sued in the US court system, which would be both time consuming and expensive. Your insurer will be able to tailor your insurance policy to safeguard you in these situations.
Vehicle
While your Canadian auto insurance typically extends to your car when driving in the US as a visitor, this is not the case if your vehicle is remaining there permanently. Instead, you will have to set up shiny new policy with an American auto insurer. As a non-US citizen, your insurance policy will depend on the make, model and age of your vehicle, as well as who owns it and its value.
By US law all vehicles must have liability only, or liability with fire, theft, wilful damage, personal injury protection and accident coverage. If your car is of low value this kind of policy should be sufficient, but if you’re considering a high-end, sporty roadster you’ll need to figure out comprehensive insurance. In most of Canada, the minimum mandatory coverage for third-party liability is $200,000, however it is recommended that you carry up to $2 million when travelling south of the border, due to the higher risk of costly lawsuits should you end up in a fender bender.
If you plan on bringing your vehicle back home with you at the end of your stay, and spend at least six months of the year living in Canada, you should be able to retain your Canadian insurance policy. However, it is advised that you speak with your policy provider first surrounding any recommended liability coverage increases.