Seasonal / cottage Insurance

A cottage needs insurance just like your home. Although it is similar to your home insurance, the coverages are different and some things may not be covered.

Why You Need it

Similar to when you are purchasing a new home (with a mortgage), your lawyer will not release the keys to your new cottage until you provide them confirmation that you have Insurance in place on the new property.

Even if you do not have a mortgage on your cottage (or vacation property) it is smart to have insurance. This way you are ensuring your Summer (or Winter) paradise is protected from loss or damages.

Description

Although cottage insurance is very similar to house insurance it is important to recognize what you are covered for and what options you have.

Typically, when you insure a cottage (or vacation property) you are covered in the event something happens to the cottage itself, but you can also get coverage for your boat house, personal belongings or other structures on your property

What are the options?

Generally speaking, most people only spend about half of their time at their cottage, because of that you are most likely not covered for everything that your house would be. Most insurance companies will only cover specific things when it comes to vacation properties; this is referred to as a Named Perils policy as only specific perils are covered, like fire and smoke damage.

The other common coverage type for cottages is the Basic Fire & EC policy. This is a basic policy that only covers your cottage for Fire, Lightening, Wind and Hail Damage. However, most companies will let you to add on coverage for Vandalism or Bear Coverage at an extra charge.

That being said, some companies do offer the All Risk option for Vacation Properties too; which is most likely similar to your regular homeowners policy. Make sure to discuss with your broker how often you use your cottage, if you rent it out and if you have a wood stove. These can make a difference when figuring out what policy is best for you.

For more details on the differences between All Risk & Named Peril’s policies click here!

Your cottage insurance can be added on to your current home insurance policy as an additionally location. However, there are some companies, that depending on the coverage, will issue a separate policy for your cottage (or vacation property)

What else is Covered

Most people assume that because they have their camper, trailer, boat or ATV/Snowmobile at their cottage that it’s automatically included in their cottage insurance.

If it’s a Named Perils or Basic Fire & EC you most likely don’t have coverage included but you do have options! Depending on the company you can add coverage for your boat, camper or trailer to your policy or take out a separate policy for them.

There are advantages to having a separate policy; if you need to make a claim it won’t affect your cottage policy and your claims free discount. For more information on Boat Insurance click here, for more information on ATV/Snowmobile insurance click here!

Liability

Liability coverage is extremely important. Like your home it provides coverage for:

Bodily Injury – covering injuries that happen to other people while on your property, or as a result of an injury for which you may be held liable.

Damage to Property Owned by Others – covering if you accidentally caused property damage to others (i.e. accidentally hitting a baseball through your neighbour’s window).

Deductibles

Generally, if you add the cottage insurance onto your current house insurance policy the deductible will default to whatever you have on your home policy. The deductible is the portion of the loss that you will be responsible for when you make a claim.

For more information on deductible and deductible options, click here!

Payment Options

Just like any other insurance policy you have payment options available to you.

There are different payment options available such as:

  • Full Payment
  • 3 Pay Plan
  • Automatic Monthly payments from a bank account (or credit card depending on the company)

We accept:

  • Cash
  • Cheque
  • Debit Card
  • Credit Card (Visa, Mastercard, American Express)
  • Online Banking Bill Payment
  • E-Transfer

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*  Please note all types of policies have exclusions, conditions and limitations.  This information is not intended to be a full explanation of coverages and in all cases the wording of the actual insurance policy will apply.