As a cottage owner, you’re already familiar with the process of getting insurance. Basic cottage insurance is perfect for families who plan to spend their time at their home away from home. However, if you’re planning to rent out your cottage, whether through a home rental app or to close friends or family, basic insurance just won’t cut it.
To make the process a little easier, we’re providing a list of insurance considerations whether you keep your cottage to yourself or you decide to rent it out when you’re not using it. Keep reading to find out more about which kind of insurance policy may be best for you!
Seasonal Cottage Insurance
This type of cottage insurance policy includes general coverage, which can cover the main buildings located on the property, as well as the interior and contents.
This kind of policy is best for owners who use their cottage seasonally – e.g. spring-summer-fall.
Seasonal coverage for your cottage and contents can offer insurance for:
- Storm damage
- Building collapse
- Replacement cost
- Snow load
- Smoke damage from fireplace
- Glass breakage
- Water escape or septic back-up
Insurance for renting out your cottage
Insurance coverage to rent out your cottage is specifically designed for those seeking the perfect combination of personal cottage use and earning extra income when you’re not there. This type of policy includes:
- Limited rental income coverage: This protects you from financial loss should your cottage be damaged by an insured peril which results in lost rental income.
- Personal liability: This will kick in to protect you should a tenant or visitor injure themselves while on your premises.
- Limited Owner’s Liability: If the use of “incidental” watercraft is included in the rental contract, limited owner’s liability coverage protects you from loss or damage arising from the use of your watercraft.
Liability Insurance for your cottage
If you decide to rent out your cottage, it’s important to include the right amount of liability insurance to your policy. Liability insurance will provide coverage in the event of a claim, for example, if someone is injured on the property.
You can even protect yourself from any claims filed by neighbours for negligence. Consult with your broker to determine the amount of liability insurance you need so that you never have to pay out of pocket.
Need help choosing the right cottage insurance?
At BrokerLink, our insurance experts are available to help you choose a customized insurance policy that will suit your specific needs. Contact us today for a free, no-obligation quote for your cottage.
FAQs for renting out your cottage
Are cottage insurance policies more expensive than home insurance policies?
Many different factors come into play when determining how much an insurance policy will cost. Just like home insurance, your broker will consider factors such as location – distance from fire and police services, road access vs. water access, crime rate and safety features when considering your cottage insurance price. Speak with a broker to determine how much your cottage insurance policy will cost.
What additional insurance coverages should I consider for my cottage?
There are many different coverage options to consider. Some policy add-ons include coverage for contents, detached private structures and watercraft. An insurance broker can discuss all of these options with you, and will provide expert advice and recommendations to ensure you get the coverage you need.
Does it matter if the cottage is used all year or only for a couple of months?
Use of your cottage is a key consideration when you’re purchasing an insurance policy for your cottage. Discuss the options available with your insurance broker.