It’s your home away from home. Your sanctuary. Where family memories are made and where you go to escape your daily routine. It’s your cottage, and like most Canadians it not only holds a special place in your heart: it is also a valuable investment. So you want to do all you can to protect it with the right insurance.
Vacation Property Insurance vs. Home Insurance
Vacation property insurance works quite differently than insurance for your primary home. First off, as most of us are only at our cottages during peak times, vacation property insurance is mostly provided as a Named perils policy. ‘Named perils’ means you have insurance coverage for specific risks. For example, if a water pipe bursts or vandals break into your cottage while you aren’t there; the damage is likely to be more severe because no one was there to take immediate action.
Additionally, there are some things that are generally excluded in vacation property insurance:
• food in a freezer
• garden equipment
• outdoor plants
• trees and shrubs
Determing the Right Coverage for You
Here are some things to consider as you try and determine the right coverage for you and your cottage:
Contents – Vacation property packages automatically include contents up to a certain limit. This coverage applies to items that are permanently kept at the cottage at all times. If you feel that the coverage provided is not enough, additional coverage may be purchased.
Detached private structures – If you have other buildings on the property like boat houses, garages or sheds, make sure they are covered in your vacation property insurance package and whether the coverage is adequate.
Replacement cost – Depending on the contents of your cottage’s property, you may want to get this type of coverage to ensure you will be able to replace an item without any deduction for depreciation.
Third-party liability – This will protect you in the event that someone is injured on your property or if a fire starts at your cottage and spreads to other vacation homes nearby.