Avoiding Cabin Fever – Cottage Insurance Policy

For most people, their cottage is a home away from home. It is a place to relax, unwind and make memories with family and friends.  For the purposes of this blog article, we use the word ‘cottage’ to describe a secondary, or seasonal residence when we talk about our cottage insurance policy however the word cottage may be replaced with other terms like ‘cabin’, ‘camp site’, ‘chalet’ (or whatever you decide to call it!).

Cottage Insurance Policy coverage is typically more limited compared to what your regular home insurance policy may include. This is especially true since these properties are primarily used for short periods of time, and typically not year-round,

But just like your home, your cottage is an asset that needs protection.

If you own a cottage, or are planning to soon, please read on and learn how to avoid what we call ‘Cabin Fever’, which is the worry associated with owning a seasonal property.

Palladium Insurance makes owning a seasonal property easy, affordable and, most importantly, relaxed! Talk to your licensed insurance broker about the cottage insurance policy that best suits your situation and preferences.

Are you covered by your Cottage Insurance Policy?

Because of the part-time occupancy associated with many cottages, coverage for certain risks, such as water damage, vandalism, fire and theft, for example, may be more difficult just given the fact that when unoccupied for longer periods of time, incidents can go undetected for quite a while. In fact, some risks you likely have with your home insurance policy, like sewer backup, damage to, or loss of food in a freezer, garden equipment, outdoor plants is likely not covered.

Be sure that additional components are also covered, such as docks, garages, sheds, boathouses and more. If your policy does not include such coverage you may purchase additional coverage to ensure you are adequately protected. Additionally, ensure all of your ‘toys’ (motorboat, sailboat, canoe or ATV for example) are also covered under your cottage policy.

Remember, if you make additional purchases throughout the year, be sure to update your insurance policy to include them!

What is the difference between Comprehensive and Named Perils Insurance?

A Comprehensive insurance policy covers both the building (cottage, cabin, campsite, trailer, chalet etc.) and all its contents for all risks (unless risks are specifically excluded from your policy). A Named Perils insurance policy provides coverage only for the specific perils listed in your insurance policy.  This means that unless your perils are explicitly stated, you are not covered against damages, loss or theft.

How Is Your Cottage Used?

How many times a year do you go to your cottage? Do you let family or friends stay there, and do you rent it out when you are not there?

Most insurance companies take into consideration how frequently your cottage is used throughout the year. Is it occupied regularly?  How accessible is your property to emergency services?  Are you on an island or logging road? Talk to your insurance broker today!

If you choose to rent your property out, you should always check with your cottage insurance policy to confirm if renting is allowed under your existing policy. While some policies allow you to rent your cottage out for a certain amount of time, unfortunately, many policies do not allow or cover the renting of your cottage out, and, if a claim was ever made, you may not be covered for loss, theft or damages. If in doubt, talk to Palladium Insurance.

Do You Need Third-Party Liability with your Cottage Insurance Policy?

Third-party liability coverage protects you if someone is injured on your property. This also could include damage you cause on a neighbour’s property. Third-party liability coverage is always recommended as additional protection.

Avoid ‘Cabin Fever’

You work hard so you can enjoy the fruits of your labour at your cottage by the lake or your cabin in the forest. Avoid the cottage insurance policy worry we call ‘Cabin Fever’ by speaking with a licensed insurance broker from Palladium Insurance. Ask about inclusions, exclusions, deductibles and occupancy requirements and know the ins and outs of your cottage insurance policy. Protect yourself from the unexpected and avoid unnecessary worry with Palladium Insurance.

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