Your cottage is your home away from home, and it’s extremely important that you consider how you plan to use it before you decide what type of insurance to buy. How often are you going to use it? Can you afford to repair it or rebuild it if damage occurs? Are you going to rent it out when you’re not there?
Cottage insurance is similar to homeowners’ insurance, but there are key differences related to the fact that you’re not in your cottage year round. This puts your cottage at greater risk for certain perils like theft, structural issues, and other exclusions. And, if you do plan to rent, you absolutely need a separate policy protecting your cottage and you from liability.
When you go on vacation, you want to be able to relax and enjoy your time away. When you leave your cottage behind, you need to have the peace of mind provided by a good insurance policy.
Consider these types of insurance:
~ Comprehensive insurance protects your cottage from all dangers other than those specifically excluded from the policy.
~ Basic coverage protects your cottage against specific perils listed in the policy. These vary but usually include: fire, theft and certain kinds of property damage.
~ Broad policies are a combination of comprehensive and basic policies. This usually means comprehensive for the structure of your cottage and basic coverage for the contents.
Cottages can be seen as higher risk because they’re more prone to theft, and can be harder to protect from fire. Because of this, most vacation properties are insured under a basic policy, but it’s up to you and your insurance agent to find the policy right for your needs.
Whether it’s a quiet home on a lake or a cabin in the woods, the key to finding the right coverage for your cottage is thinking about how often you’re going to be there and how you will use it. Protect your investment in your cottage by taking the time to insure it properly.