Are your dreams of buying a cottage close to becoming a reality? Before you start enjoying your slice of paradise, remember to dot your i’s and cross your t’s. Especially important: cottage insurance! Just like your primary residence, your cottage is an investment that should be protected. Whether it’s a lake house, ski chalet, or a cabin in the woods, the right cottage insurance will save you headaches down the road. Read on to find out which cottage insurance is right for you.
Which type of cottage insurance is right for you?
Choosing the right cottage insurance will depend on how often you use it. Do you only use your cottage seasonally? In the summer or the winter? Or is your cottage a four-season retreat? The amount of insurance coverage will depend on how much time you spend there. For example, if you spend every weekend, “all-risk” insurance may be right for you. However, if you only use your cottage for a few weeks in the summer a seasonal insurance plan may be more appropriate. As a general rule, “all-risk” or comprehensive insurance is recommended for primary residences and named perils insurance is recommended for secondary residences.
Why get an “all-risk” cottage insurance plan?
If you stay at your cottage regularly, say every week, you may want a more comprehensive cottage insurance plan. This type of insurance, also known as “all-risk”, is similar to your homeowner’s insurance. This cottage insurance will typically offer the same coverage as your primary residence. Things like theft, vandalism, and fire are covered under an all-risk policy. But it also covers any liability if you accidentally injure someone or damage their property.
Seasonal cottage insurance may be enough for your needs
If you use your cottage seasonally or less regularly, you can insure it with seasonal insurance. This type of cottage insurance offers limited coverage. Known as “named perils” insurance, this cottage insurance will cover damage from fire, high winds, hail and lightning. However, it will not cover break-ins, vandalism, water damage from a burst pipe, or damage caused by animals. If you close your cottage up for the winter, you should drain all pipes, the water heater and appliances. This will prevent any potential damage from a burst pipe.
So what about personal property?
How much insurance do you need for the contents of your cottage? To determine the coverage you need, list items that remain permanently in it. For example, many of your belongings likely travel back and forth with you from your primary residence. These would be covered under your primary residence insurance. Any items that remain permanently at the cottage would be covered under your cottage insurance policy. As such, it is smart to purchase your cottage insurance and home insurance from the same company. In fact, some insurance companies will not insure your cottage unless they already insure your primary residence.
And remember that seasonal insurance is not covering any loss due to theft. If you have valuables that remain permanently at the cottage, we recommend adding separate coverage to your policy. This could include burglary and vandalism. Check with your insurance company to get all the information.
Buying a home away from home is an exciting step in your life. Make sure you protect your investment with the right cottage insurance. If you are looking to buy a cottage, contact Kanata Tremblant today to visit their beautiful cottages for sale and breathtaking estate. Your dream cottage is just a few clicks away!