Catastrophic events such as wildfires and floods are making it increasingly difficult to secure property coverage for recreational properties and secondary homes in some of the most desirable locations across Canada and the United States.
Anna Rickard, Director of Signature by Acera Insurance, discusses this reality in this article published in Canadian Family Offices.
Insurance challenges that high-value property owners are facing
As severe weather increases in frequency and severity, carriers’ appetite for insuring properties in high-risk areas is dwindling. This means that placing coverage at reasonable rates — or at all — is increasingly difficult in areas like California, Florida and British Columbia.
“Looking at the Canadian landscape, I would say one of our biggest issues is Whistler. We’re finding it really hard to insure secondary homes in that area.”
Anna Rickard, Director, Signature Insurance
Potential coverage solutions for high-value property owners
Despite the challenges with securing coverages in some areas, the article explores some ways that high-net-worth individuals may want to consider when it comes to insuring their secondary and season properties. This includes:
- Taking action to mitigate exposure and risk to the property.
- Working with a broker, who may be able to secure coverage through the excess and surplus market if their property location is deemed too high-risk for standard insurance coverage.
- Self-insurance.
Learn more about the implications of insuring vacation homes and secondary properties in popular destinations.