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You’ve spent all winter dreaming of that perfect cottage down by the lake. You know, the one with the hammock, tall evergreens, and the big porch looking onto the water.

And now it’s here! Cottage season is officially in session, and your friends at Acumen Insurance Group are here to help make sure you get to enjoy every minute of it with cottage insurance. Whether you have a cottage by the lake or a cabin in the woods, ensuring your home away from home is fully protected with cottage insurance is essential.Today, we’ll provide a complete overview of cottage insurance – from what it is and what’s covered to tips and tricks to securing the best policy.

What is Cottage Insurance? 

Similar to your home insurance, cottage insurance is designed to protect you and your investment. In Ontario, a cottage or vacation home can be included in an individual’s home insurance policy as either a secondary or seasonal location, or it can be insured separately.

What Does Cottage Insurance Cover? 

While cottage insurance policies are subject to vary, they typically provide the following coverage:

Property and Contents 

If your property or its contents are damaged, lost, or destroyed as a result of outlined factors, this part of your policy will cover you. Common examples include fire, damage due to falling objects, and vandalism.

Liability Coverage

In the event that one of your guests sustains an injury while on the property, liability coverage protects you. For example, if someone trips over your fire pit and sprains their ankle and heaven forbid decides to sue you, you’ll be covered to the extent outlined in your policy.

Does Cottage Insurance Cover My Boathouse or Shed?

If your cottage has a boathouse, garage or shed you’re likely wondering if it too is protected under your cottage insurance policy.

A lot of time detached private structures such as these are not automatically covered, or if they are the coverage is fairly limited. The good news is you can purchase additional coverage to ensure full protection.

What about watercraft? 

It depends... Again, every insurance policy will have different coverages for watercraft. For example, some policies may cover your boat, but not your personal watercraft like jet skis or sea-doo. Others might cover both types of watercraft, but not the trailer that accompanies them. And still, others may not cover any type of watercraft at all!

If you have a boat or other personal watercraft at your seasonal or secondary residence, speak to your insurance broker to ensure you have adequate coverage.

How Much Does Cottage Insurance in Ontario Cost? 

Cottage insurance in Ontario can cost property owners anywhere from $800 to $3,000 each year.

To determine your quote, insurers consider a number of factors. Here are a few examples of some of the things they may consider when forming your premium:

• How often your cottage is occupied (year-round vs seasonally). A property that is sitting unoccupied for months on end without maintenance is likely to cost more to insure than a secondary property that can be accessed all year round and visited on a weekly or bi-weekly basis.
• Age of cottage. Older vacation homes tend to be at a higher risk for insurance claims and cost more to insure.
• Cottage features. Hot tubs, pools, fireplaces, docks, and firepits increase the risk of your home away from home.
• If you rent out your cottage to others. Renting out your cottage does provide you with some extra side money, but it comes at the expense of increasing your insurance premium. In addition, not all carriers allow the rental of seasonal properties.
• Proximity to fire hydrants or a fire station, as well as road access.
• If you have security and monitoring systems. May be eligible for a discount on your insurance.
• Materials used, age of the roof, type of plumbing, and electrical systems will also affect the likelihood of an insurance claim.
• Replacement cost(s). The value of your cottage will also affect your insurance as it determines how much it will cost to repair or replace it.

5 Cottage Insurance Tips to Ensure Protection and Peace of Mind 

Cottage insurance policies are an essential part of protecting your cottage for the seasons to come. Whether you own or rent, a cottage insurance policy is a smart investment in your home away from home that can help you save time and money.

Here are some tips to consider when shopping around for coverage to ensure you receive the utmost protection for your vacation home:

1. Determine if You Need Seasonal or Secondary Insurance 

In Ontario, there are two types of cottage insurance: seasonal property insurance and secondary property insurance.

Secondary property insurance is best utilized for vacation homes with year-round access with occupants expected for 2 to 8 weeks every year. Also commonly referred to as secondary home insurance, if you’re leaning towards this option, chances are your vacation home is truly your home away from home, and your visits up there aren’t saved for just a few special occasions.

Seasonal property insurance, on the other hand, provides coverage for cottages that are used for one or two seasons annually, like during the winter or summer.

From the eyes of an insurer, a property is more at risk the longer it remains unoccupied. Even if you’ve taken all of the necessary precautions to ensure that your cottage is secure and protected, there are still dangers and risks that come with leaving your cottage vacant.

When you’re planning on being away for an extended period of time, make sure you find other ways to check in on your property and keep up with regular maintenance so that things don’t get out of control while it remains vacant. If you can’t personally make it down there, arrange for a friend, family member, or neighbour to pop by and ensure everything appears in order.

2. Ask the Right Questions

Purchasing cottage insurance can be an overwhelming process. There’s a lot to consider, and you want to make sure you’re getting the right coverage for your needs.

That’s why it’s important to ask potential insurers the right questions before signing the dotted line. Here are some examples of questions that you should ask:

Are there any specific requirements I should be aware of to ensure I receive the full benefits of my cottage policy if needed? 

Some policies require you to make regular visits throughout the year. It’s important to familiarize yourself with the policy and ask the insurance advisor questions about any specific requirements before you agree to anything.

Does my policy include the Replacement Cost of the building(s) or the Actual Cash Value of the building(s)?

The answer to this question helps you determine how much you’ll have to pay out-of-pocket in the event that a fire or other damage leaves your cottage in need of rebuild or repair. Ideally, you want a policy that offers the replacement cost.

Am I covered if I decide to rent out my cottage? 

If you’re thinking about eventually listing your cottage on Airbnb, you’re going to want to ask potential insurers if renting is allowed under your cottage insurance policy.

Rentals are not typically covered under most cottage insurance policies. In fact, renting out your vacation home could result in unfortunate consequences the next time you attempt to make a claim. If they are covered, it’s usually only during certain rental periods.

Do I have to have my home insurance with you too? 

Many companies stipulate that you have home insurance with them before they insure your cottage. However, there are exceptions to this. When meeting with potential insurers, don’t just assume – ask!

3. Shop Around

When you’re shopping around for cottage insurance, it can be tempting to just pick the first quote you acquire. After all, who wants to go through the hassle of obtaining several quotes?

However, we urge you not to settle on the first quote you get! When you shop around, you’re able to compare different insurers and their rates, which helps you make a more informed decision about which policy is right for your needs.

Try to aim for at least three quotes and cast a wide net. Cottage insurance can vary widely among insurers so you may find better prices for the coverage you need if you broaden your horizons. You can also ask friends and family members with cottages about their experience with different insurance companies, but keep in mind that each person’s experience is going to be unique.

The bottom line – don’t settle for anything less than what’s going to give you peace of mind when it comes to protecting your cottage.

4. Be Wary of Flooding

Did you know that flooding is one of the most frequent claims made by cottage owners? It’s true! Flooding can be a major headache for cottagers. It can lead to serious structural damage and mould growth.

Don’t let it dampen your summer of fun – protect yourself and your cottage from the threat of flooding.

If you’re the type of person who likes to spend time at their cottage year-round, consider installing smart water devices to notify you of any potential frozen pipes or flooding. The technology nowadays is incredible! Devices like leak detectors and smart shut-off valves are available to stop leaks before they have a chance to cause any real damage.

If you plan to only occupy your vacation home in the warmer months, before your close-up shop, don’t forget to shut off the water supply and drain your pipes. You might also want to consider opting for a monitored alarm or arranging for someone nearby to come to check on the property while you’re away to avoid any water damage – doing so could even save you money on your insurance!

Your Vacation Home is Always Safe with Acumen 

Your cottage is your home away from home. You’ve made it a special place, and you want to know that it’s protected. That’s why we’re here.

We know that you love your vacation home, and we want to help ensure it continues to be enjoyed for the years to come.

Whether you’re looking for seasonal or secondary home insurance, our experts will work with you to find a policy that covers all the bases. Request a quote today, or book a consult with one of our agents – we can’t wait to work with you!