7 Questions and Answers About Cottage Insurance

Buying a cottage is so exciting! We’re all looking forward to one thing: relaxing by the fire. Clearly, worries have no place here… but you see where we’re going with this, right? Yes—finding the right cottage insurance should always be a priority. But how do you choose the coverage that’s right for you? We’ve got you covered with answers to the most frequently asked questions.

1. What does cottage insurance cover?

There are all kinds of cottages—small, large, log cabins, waterfront retreats… They come in many shapes and sizes, and are located in all sorts of settings. Cottage insurance is designed to cover the property as a whole, along with the belongings inside. However, a few factors can affect the type of coverage you need—like whether you rent out your cottage, if you have a boat, how often the property is used, and so on. We’ll get into those details a bit later.

2. What’s the difference between seasonal home insurance and secondary homeowner insurance?

Both types of coverage offer different protections based on the value of the building, but more importantly, how you use it. For example, if you only visit your cottage a few times a year, seasonal home insurance might be your only option. However, if you stay there more regularly, secondary homeowner insurance is likely the better fit. Here’s a closer look at both options:

Seasonal Home Insurance

At its core, a seasonal home insurance policy mainly covers damage caused by fire, lightning, strong winds, and hail. Unfortunately, this basic and more limited coverage can sometimes lead to unpleasant surprises. Even if your cottage is older or less maintained, damage can still be significant—and costly. That’s why it’s worth considering additional protection against theft, vandalism, snow load, and water damage. Once again, an insurance broker is your best ally. They can help you find the right coverage at the best price to ensure your property is properly protected.

Secondary Homeowner Insurance

Secondary homeowner insurance offers a much more comprehensive basic coverage. It’s also known as “secondary residence insurance.”

It closely resembles the standard insurance used for primary residences. You’ll generally have access to the same types of coverage options—either comprehensive (also called “all-risk”) or named perils coverage. The exact names may vary depending on the insurer. Named perils coverage is more limited and therefore more affordable, but it still offers broader protection than seasonal home insurance.

3. How much does cottage insurance cost?

Much like home insurance, cottage insurance can vary significantly in cost from one policyholder to another. What causes this variation? It’s due to factors such as:

The Use of the Cottage

How do you use your cottage? Do you go there regularly, or only a few times a year? This information is crucial for guiding your broker or insurer in determining the type of coverage you need.

The Location of the Cottage

A waterfront cottage: it’s a dream for many! However, it can quickly turn into a nightmare if you’re not properly insured. Think about it. The water level rises suddenly and unpredictably in the spring, flooding your peaceful retreat. This type of loss is not uncommon and, unfortunately, it’s not always optimally covered. Take the time to ask the right questions.

The Belongings Inside Your Cottage

The furniture and accessories that are permanently kept in your cottage are important to mention. Their value can make a significant difference in determining the ideal insurance coverage.

For example, it’s common for the cottage to become a storage place for valuable possessions. This includes family heirlooms, such as a stained-glass lamp or a grandfather clock. Firearms or sports equipment might also be stored there. The key is to mention all of this when requesting quotes. It’s essential to avoid headaches when it comes time to make a claim.

4. Does my insurance cover my watercraft or ATV?

Often found at the cottage, ATVs are not covered by home insurance, regardless of the policy type. As for watercraft, coverage depends on various factors such as its value, length, engine type, age, and more. However, endorsements can be added to your cottage insurance policy to adjust your coverage accordingly.

5. What happens if I want to rent out my cottage?

Would you like to make your cottage profitable? Renting it out is a great idea. However, your insurer will see this as a significant increase in risk. As a result, the cost of your cottage insurance will go up.

Applicable to any type of insurance, our best advice is to be transparent. Failing to disclose that you’re renting out your cottage in order to save on insurance could lead to more trouble than it’s worth!

Also, be aware that some rental platforms claim to cover their users. That said, these protections are limited and only cover specific situations. Don’t rely on them for proper insurance coverage

6. What information do I need to insure my cottage?

The more information you have about your cottage (construction details, renovations, etc.), the better. Consulting an expert, such as a broker from Fort Insurance, also means getting guidance to quickly and easily find the key information needed by insurers.

7. What’s the difference between my home insurance and my cottage insurance for my personal belongings?

The main difference is that cottage insurance covers the belongings that stay at the cottage, while home insurance covers the items you bring from your home to the cottage. For example, if you bring your guitar for the weekend, cottage insurance would cover it if it gets damaged in an incident.

Good to know!

Some insurance companies require you to have home insurance with them in order to offer you cottage insurance. You can turn this to your advantage! Bundling your insurance policies could lower the cost of your premium!

How to find the best cottage insurance?

To find the ideal insurance, you need to gather as much information as possible. As mentioned throughout this article: transparency equals peace of mind. Being honest is what allows you to get the perfect coverage—coverage that will have your back in case of a claim. At Fort Assurances, we guide you from the very beginning to make your life easier. If it’s something we can do for you, we’ll do it!

Speak with an insurance expert