8 Tips for Choosing the Right Cottage Insurance Policy
Picture this; you’ve just purchased your dream cottage on the lake for you and your family to enjoy for many years. Imagine having barbeques in the backyard and taking the boat out on sunny, breezy summer days.
It’s hard to imagine a better lifestyle. However, before that dream becomes a reality, you need to protect your newest asset by taking out the proper insurance.
Of course, having all the legalities in order will make enjoying the property all the more worthwhile. Suppose you recently purchased a cottage property (or perhaps you are hunting for one). In that case, you may be wondering how to choose the right cottage insurance policy for your needs and budget.
Please read below for our eight most reliable tips for selecting the right cottage insurance policy. After all, making an educated decision is paramount to your safety, well-being and wallet.
What Exactly Is Cottage Insurance?
As you might imagine, cottage insurance is just like any other type of insurance for your home or car, except that it primarily covers your cottage property and its contents. Lenders usually require proof of insurance for safeguarding when purchasing a cottage with a mortgage.
Cottage insurance generally covers damage to the structure of your cabin and contents, and personal liability in case a guest or visitor sustains injuries while on your property. There may be coverage for other incidents such as fire, floods and vandalism.
It’s important to review your insurance policy before you agree and sign it so that you fully understand what it covers and entails. Many factors go into determining the premiums you will pay on cottage insurance. Still, rebuilding value and location are the two big ones.
Tips for Choosing the Right Cottage Insurance Policy
1. Consider How Often You Visit
The main types of cottage insurance are seasonal cottage insurance and secondary property insurance. Secondary property insurance is for a cottage that can be used year-round and is typically visited more frequently by you and your family. Seasonal property insurance is for cabins that are not winterized and cannot be accessible all year round.
These properties are usually only frequented in the summer or when roads and access become easier. When deciding between these types of insurance, you must ask yourself how often you will be using and visiting your cottage and its primary purpose.
2. Choosing The Right Insurance Company
Some insurance companies will only insure your second property if they currently have your primary residence/home insured with them. You may also ask your broker what companies will insure your cottage as a stand-alone property. You may save money by bundling home and second property insurance with the same insurer.
3. Look At Factors Affecting Your Coverage
When choosing cottage insurance in Ontario, your premiums will largely be determined by the rebuilding value, location and intended use of your cottage.
If you are trying to save money on insurance, look at certain factors affecting your coverage, such as access to fire halls and hydrants, special features such as hot tubs or pools and even the type of electrical wiring. If anything is outdated or faulty you may need to update prior to getting coverage.
4. Consider Alternate Options If Renting Out
If you choose to rent out your cottage, you will need to secure additional insurance. It is important to ensure you have coverage for renting, as you want to make sure there’s coverage in the event of a loss. If in doubt, check with your broker regarding any possible rental coverage or requirements for your policy.
5. Location Matters
Location will be significant in determining the value and safety of your cottage home. For example, a cottage on an island will be more costly to insure, as there will be less access to hospitals, emergency services, and repair costs may be higher in remote locations with little access or transportation.
Mainland cottage locations are typically preferable and easier to insure as they are more accessible.
6. Choose A Policy That Covers Replacement Costs
When looking through your insurance policy, you want to ensure that the company will cover replacement costs (if it qualifies) and not the actual cash value of your property and belongings. This is because you may have paid less for your cottage (especially if you bought it years ago) than what it costs to rebuild and replace it to code today.
7. Ask About What’s Not Covered
When speaking to your broker about coverage options, you should always be informed about what isn’t covered in specific policies. For example, some insurance policies do not cover flood damage, boats, motorized vehicles, earthquakes or damage by an animal. You may be able to add some of these coverages to your existing policy.
Ensure you are informed about what is covered and not covered on your policy before agreeing and signing on the dotted line.
8. Ensure You Have Liability Coverage
Without a doubt, you should always ensure you have liability coverage on any property that you own. This will cover you in the event someone else sustains injuries on your property or should your negligence cause damage to other properties nearby.
Overall, having a secondary cottage home is a privilege and a luxury for any family. That’s why protecting your dream cottage home with the right type of insurance is more important than ever. Please don’t wait until too late to find out that your cottage insurance policy doesn’t cover what you need it to.
After all, accidents happen, and it’s only once they do that you truly realize the value of having proper safeguards and protection. As you delve into the details of cottage insurance in Ontario, remember the significance of safeguarding your primary residence. Our expertly crafted insurance solutions encompass both cottage and home insurance in Ontario, ensuring comprehensive coverage tailored to your unique needs.
For more information on cottage insurance in Ontario and Canada, don’t hesitate to contact James Campbell Insurance at 1-833-459-1065 or contact us here. Our representatives can help address any concerns and guide you to the best insurance package. Contact us today to get educated on our services.