Your Vacation Home is Safe with Us.
If you’re like many Canadians, your cottage is your home away from home. But did you know that cottage insurance for your vacation property works a bit differently than insurance for your home or primary residence?
Our Policy is to Get You the Best Policy!
Your insurance broker will need the following information about your property:
- How your cottage or vacation property is used and how often it is occupied.
- The amount of time you spend at your vacation property.
- Do you use it year-round?
- Do you ever rent it out?
The answers to these questions will help your insurance broker determine the type and amount of coverage you need.
Did you know?
You can include your vacation property on your home insurance as a “secondary” or “seasonal” location, or you can insure it separately.
Because of the part-time occupancy, coverage for certain risks, such as water damage or vandalism, may be more difficult or expensive to arrange. For example, if a water pipe bursts in your vacation home while it is unoccupied, the damage is likely to be more severe because no one will be there to take action.
Some risks are not covered in insurance policies for secondary homes. Coverage for sewer backup, damage to, or loss of, food in a freezer, garden equipment, outdoor plants, trees and shrubs, may not be included in your policy.
What is the Difference Between Cottage and Home Insurance?
Because many cottages and vacation homes are used only seasonally, coverage is usually more limited. Cottage insurance is almost always provided as a named perils policy instead of a comprehensive policy.
Named Perils Policy
This type of policy provides coverage only for the specific perils stated in your policy. Typical perils include fire, explosion and smoke damage.
This type of policy covers both the building and its contents for all risks (except for those specifically excluded).
Are Watercrafts Covered?
Remember, every policy will have different coverages for your watercraft. If you have a boat at your seasonal or secondary residence, speak to your insurance broker to make sure you have adequate coverage.
Even a “fixer-upper” of low value still requires third party liability coverage. This protects you if someone is hurt on your property or if you start a fire that accidentally spreads to neighbouring properties.
Additional Cottage Coverage
Some insurance packages automatically include contents up to a certain percentage of the dwelling limit. This applies to contents permanently kept at the vacation home. Anything you take back and forth (such as clothing) is covered by your primary home insurance policy. If inadequate, you can buy additional coverage.
Detached Private Structures
Limited coverage for outbuildings such as boathouses, garages or sheds will be included in some policies. This is generally a percentage of the dwelling limit. If inadequate, you can buy additional coverage.
This covers the cost of repairing an item or replacing it with a new one, without any deduction for depreciation.