Owning a cottage can be great, but it can also be expensive. Many cottage and cabin owners rent out their place when they cannot use it. It can be a great way to help pay for the expenses, but it could affect your insurance coverage. Here’s what you should know before you hand over the keys to a renter.
According to the Globe and Mail, more cottage and cabin owners are turning to vacation rental sites to market their properties to potential renters.
But be sure to double check with your insurance advisor before you rent out your vacation home because you may be voiding your coverage.
Many insurance policies can cover your cottage when you rent it out; however, there are a number of factors to consider, including: who you rent to (family, friends or people you do not know), how long the rental period is, and the frequency during the year can all impact coverage. For example, the policy may cover renters up to three times per year for a maximum of four weeks total. If you rent your cottage for five weeks and an accident happens, you may be responsible to pay for all the repairs. Every situation is different and it’s important to speak with your insurance advisor to make sure your coverage is still valid.
If you plan to rent out your cottage for longer periods of time, you have a couple of options. You may need to switch to another insurance provider that offers longer rental periods. Or, you can purchase a commercial insurance policy that will cover your rentals.
The best way to protect your vacation property and your peace of mind is to call one of our Insurance Advisors to check your seasonal property policy. They can make sure that you and your renters are protected in case of a fire, accident or other issue. If you have a boat, ATV or other recreational vehicle, ask one of our Insurance Advisors about adding them to your existing policies.
Have you rented out your cottage or cabin? Would you do it again? Let us know in our comments section.