How is cottage insurance different than home insurance?

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Posted Aug 9th, 2018

How is cottage insurance different than home insurance?

Cottage insurance works somewhat differently than regular property insurance. Here, the Youngs Georgetown team explains how it’s different, and what to look out for.

Your cottage is used differently than you’re home, so it’s insured differently, too.

While your cottage is like your home in that it is one of your most valuable assets, the fact is that you likely spend far less time in this property than at home.

So, when considering what type of insurance to buy for your cottage, it’s important to ask yourself questions around how it’s used, like:

  • How much time do I spend there?
  • Do I use it year-round?
  • Do I rent it out? If so, how often?

Insurers will take the answers to these questions into consideration, and build your cottage insurance package accordingly. What does this mean?

There are unique risks associated with insuring a building that is not occupied full time. Specifically, if the building sustains damage, for instance from a burst pipe or from a break in, it can take longer for that damage to be discovered.

During the time that the damage goes unnoticed, it could become more severe. The same issue does not exist for residences with full time occupancy, since the owner likely to notice and take action on the damage much more quickly, since they're at the house every day.

Be Aware of Exclusions

Common exclusions for cottage insurance policies include things like coverage for septic backup and flooding, earth movement, fuel oil release, and damage to or loss of motorized vehicles, campers, trailers, and buildings used for farming or business purposes.

In addition, third-party liability coverage is also not typically included in a standard cottage insurance package.

If you are concerned about any of these exclusions, be sure to mention them to your Youngs Georgetown broker; we can help you find a plan that suits your unique needs.

Consider Additional Coverage

Depending on your requirements, you may wish to add the following additional elements to your plan, if they are not already included.

  • Contents Insurance: applies to any contents permanently kept at your cottage.
  • Detached Private Structure Insurance: insurance for outbuildings like boathouses, garages and sheds.
  • Watercraft Insurance: Coverage for recreational vehicles like boats and jet skis kept at the cottage.

If you are looking to insure your cottage, contact the Youngs Georgetown team today. We'll help guide you through the process, and build you a plan that works.

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