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Top 10 Questions To Ask When Choosing A Cottage Insurance Policy

Going to a cottage is a Canadian tradition. By owning a cottage, you can destress from the fast-paced city life and create lifelong memories with family and friends. And while many people decide to buy a cottage property, some don’t consider the adequate and necessary cottage insurance coverage that they need. In this article we will consider the top ten questions you should keep in mind when talking to your broker about cottage insurance.

1. Do you have seasonal perils coverage?

Cottages can become damaged in the fall and winter months when you are not there. Ask your broker whether your named perils insurance policy covers damages to your property other than fire, explosion, or smoke damage.  

2. Do you have to have your cottage insurance with your home insurance company?

Some companies will only insure your cottage if you have an existing home insurance policy with them. Be sure to ask your broker about this. 

3. Does your policy cover your cottage if it is in a remote location?

Remote location cottages have more risk associated with insuring them and usually are more costly to build or repair. Let your insurance broker know about your cottage being in a remote area so that you can be properly covered. 

4. Can you rent out your cottage to others and have it covered by your cottage insurance policy?

If you are planning to rent out your cottage to others not listed on the insurance policy, check with your broker if you're allowed to do so and for how long. 

5. Does your policy offer a Replacement Cost?

In the case that you need to rebuild or upgrade your cottage, a replacement cost option in your insurance policy is a much needed benefit as it can save you money on construction material costs. 

6. Are there any specific requirements (fine print) that you need to know about to get the full coverage option?

Insurance clauses are certainly not easy to read and understand, containing a lot of details that you may be unfamiliar with. Be sure to ask your broker about the fine print in your insurance policy in order to get the full coverage that you need.

7. Are your outbuildings (deck, boathouse, garage) covered by your cottage insurance policy?

You can have valuable items in your outbuildings, such as boats, snowmobiles, or ATV’s. Be sure to ask your broker whether your outbuildings are covered by your cottage insurance policy. 

8. Are your boats and other watercraft covered by the policy?

It is a fact that boats are quite expensive, both to buy and repair. Ask your broker whether you need additional coverage for your water crafts in addition to your standard cottage insurance policy. 

9. What are the limitations on content coverage when making a claim?

In the event that you will make a claim, content coverage applies to items kept permanently at the cottage (i.e. bed, other furniture). Ask your broker if you need additional coverage for items that you bring with you to the cottage, such as laptops or other devices. 

10. Do you need third party liability?

Third party liability covers you in the case that someone gets hurt at your cottage, or if they damage your property or other properties close by. 

If you are interested in insuring your cottage, please contact us today and our knowledgeable staff will answer your questions and provide you with much needed information.