While your home may be one of your most valuable assets, your cottage may fall closely behind. Just as you insure your home to protect yourself against a wide range of financial losses, you also need to insure your cottage. In fact, with a closer look at what cottage insurance is and how it can benefit you, you will see why you need to purchase this coverage as soon as possible or update your current policy so that it is as comprehensive as possible.
Property Damage Losses
As is the case for the property insurance policy on your primary residence, you may face significant losses if your cottage or recreational property is damaged. Fires, theft, vandalism and other issues may commonly be covered by cottage insurance, but you should read the fine print on your coverage. Each cottage insurance policy may have specific terms and conditions, and some coverage types may only be available dependent on occupancy. If you lease the property to tenants when you are not using it personally, special conditions may also apply. Typically, if you file a claim on cottage insurance, you will be responsible for paying the deductible in the same way that you would pay a deductible on primary residence insurance.
In addition to potential financial losses associated with physical damage to your cottage, liability is also a serious concern. Friends and family who spend time with you in the cottage may be injured on the property. The same holds true for tenants or even delivery professionals, contractors and others. Liability insurance for your cottage may pay for most of the expenses that you otherwise would need to pay if you are responsible for damages related to your property. This coverage could save you a substantial amount of money and is usually included as a standard component in a cottage insurance policy.
While cottage insurance generally is robust and comprehensive, there are some things that it will not cover. There are likewise, some things that are only covered if you purchase optional coverage. For example, water damage is not usually covered by a typical cottage insurance policy. However, water damage may be more severe in a cottage because a leak or another issue could occur when someone is not in the home. Water could spread throughout the cottage, and it may be weeks before anyone notices it in some cases. Water damage coverage, personal contents insurance, watercraft insurance, detached private structures insurance and other optional add-ons are available in many cases.
You may have purchased your cottage primarily as a financial investment, as a vacation home for recreational use or for a combination of both purposes. Regardless of the reason why you have invested in a cottage, you cannot take chances with the possibility of financial loss. Cottage insurance is available to protect you against many types of property losses related to your cottage. If your cottage is not currently insured, now is the time to set up an effective policy.