Insuring Your Cottage

A few key differences exist between home insurance and insurance for a second house. Which insurance policies are right for your cottage will depend on how frequently and for what purposes it is used.

To what end is your cottage put?

Like your primary residence, one of your most important possessions is your cottage. How long do you typically stay? Do you use it all 12 months? Do you have tenants at any time of the year? The answers to these questions are crucial when deciding what kind of cottage insurance to purchase.

How often you use your home, who lives there, and whether or not you rent it out are all factors that insurers will evaluate. If you already have your principal property insured with that company, they may also be willing to cover your cottage. 

Insuring a cottage as a secondary or vacation property is possible. Property insurance may be purchased independently from other types of insurance.

Choices for Cottage Insurance

Cottage or recreational property insurance is often offered as a named perils policy rather than a comprehensive or all-risk coverage due to the higher risk associated with a part-time profession. 

Named perils insurance protects you against disasters like fire, explosion, and smoke damage. Part-time occupancy might make it more difficult or costly to get insurance against hazards like water damage or vandalism. It takes longer to find damage, so if a water pipe breaks or vandals break in while your cottage is unoccupied, the damage will be more extensive.