How to insure your cottage

Now that you’ve inspected your cottage and completed all required repairs and maintenance, you have a first hand look at the importance of properly insuring your cottage.So if you’re looking to make your life easier next season or to arrange your insurance in such a way so as to avoid headaches altogether, TSG is continuing our series of cottage insurance blogs. This week, we’re focusing on points to consider next time you’re changing or updating your cottage insurance.1. Ask your insurer if there are different policy requirements for seasonal and year round use. Seasonal coverage may be limited because it entails higher risk. For instance, damage to your cottage can become worse when you’re not around to address it. Some policies cover only specific risks named in the policy and nothing else. Speak with your broker and insurer to find out exactly what your policy covers so you’re not caught by surprise should disaster strike.2. See if you can bundle your primary and vacation homes. Some insurers require that you insure your home with them before taking on your cottage, although some specialize in cottage coverage.3. Does your policy cover increased costs in remote locations? It may be tempting to get a cottage in a very remote location to truly get away from noise and distractions, but you have to consider the extra costs and disadvantages in doing so. For example, contractors may charge more for delivering materials and personnel to distant areas. Cottages on islands present another challenge. Be sure to let your broker and insurer know if your cottage is on an island.4. But if your cottage is more accessible, you may wish to rent it to other vacationers. Before you do, check if your policy permits renting. If not, your coverage may be void if renting causes damage or any liability situation. Your policy may also have a limit as to the length of the rental period.5. Does your policy include replacement cost or actual cash value? Replacement cost is the cost of repairing or replacing your cottage, while actual cash value is the present value of anything that remains of the dwelling after damage. Replacement cost is preferable because repair and replacement expenses increase over time and may be unfordable when repairing an older cottage.6. Don’t void your policy! Some policies have requirements you must meet in order to qualify for coverage such as visiting your cottage throughout the year. Consider how frustrated you would be if your policy was declared void because you were unaware of a certain requirement, especially one that you could have met.7. Make sure any other structures on your property are covered. Docks, garages and boathouses may not be included under your cottage primary policy and you may need to purchase additional coverage as these buildings face much the same kind of damage and risks as your cottage.8. By the same token, the watercraft and vehicles stored in your outbuildings, like snowmobiles, ATVs and quad bikes, may not be covered under your cottage policy. If you plan on operating any vehicles in and around your cottage, damage and liability concerns apply as they would with your car. Large boats will likely require additional coverage because dock yards often the boat be insured before you station it on their premises.Does your cottage insurance give you the coverage you need? Comment below or tweet us @TheShepherdGroup