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?
What your insurance representative needs to know
How your cottage or vacation property is used and how often it is occupied will dictate which insurance package is appropriate for you.
- How much time do 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 representative 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
- Some risks are not covered in insurance policies for secondary homes. These include sewer backup and damage to, or loss of, food in a freezer, garden
equipment, outdoor plants, trees and shrubs.
Similar, but different
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.
This type of policy covers both the building and its contents for all risks
(except for those specifically excluded).
This type of policy provides coverage only for the specific perils stated in your policy. Typical perils include fire, explosion and smoke damage.
Remember, every policy has limits for watercraft.
If you have a boat at your seasonal or secondary residence, speak to your insurance representative 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 Coverages to Consider
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.
Some insurance packages include limited coverage for outbuildings such as boathouses, garages or sheds. 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.
Find the Plan to Cover Your Property
For over 30 years Acumen Insurance has been a leader in providing personal home and auto insurance products. We have always excelled in providing our clients with the best options to suit their needs and lifestyle. Let us help you choose the right home and auto insurance policy for you. Call and speak to one of our brokers directly 905-574-7000 or get a quote online now.