Insurance Corner: Insuring your cottage
by Martha Marton

If you can obtain insurance coverage for your cottage with the same insurer as your home insurance, is almost certainly the best deal. Stand alone coverage is much more costly and bundling the coverage with your primary home policy can generally get you better coverage at a more reasonable rate.

That being said, you may still pay more for your cottage insurance than your primary home. Why? Often vacation homes are located in remote areas, at least an area more remote than your principal home. The fire department is probably further away and may consist of volunteers that may take longer to arrive at the scene. The hydrant may not exist and that lake you may think is a great source of firefighting water freezes in the winter time. Roadways may not be as assessable and, in some areas, may not even be plowed in the winter.

The coverage is usually written on a "Named Perils" basis, less all encompassing than the coverage your probably have on your primary home. Because insurers know that your will probably not be checking on the property as often, they will be reluctant to insure some risks, such as vandalism or water damage from a burst pipe. They know that the damage is likely to be more severe if no one is there to repair the damage or stop the vandal. If the insurer is willing to provide coverage, they will probably charge more for the protection.

You probably do not spend as much time at your secondary home as your main home and that is also a factor. You should check on the home frequently. (How often is a question that will be asked when you take out your policy). You may even consider installing alarms that indicate a break-in, fire or too low a temperature.

Most policies have a clause that limits the length of time a cottage can be vacant before voiding the policy. If your home will be left empty for a period of time, be sure to check with your broker to be sure your coverage will remain in effect.

If you are considering renting out your property, be sure to discuss your broker beforehand. Many insurance companies do not insure rented properties and your insurance may need to be amended or changed. You may also want to insure the amount of the rental income, should something happen to your property that prevents the rental agreement from being fulfilled.

For additional information, contact Martha Marton at Tupling Insurance Brokers Limited - (705)458- 8111 marthamarton @tuplinginsurance.com

Tupling Insurance Brokers, 1070 Innisfil Beach Road, Innisfil, ON L9S 4T9 705.431.5585