Insuring Your Seasonal Residence

If you own a cottage, not on the premises of your primary dwelling, you may insure it separately or have it insured on the same policy as your home insurance. Coverage is usually more limited than with dwellings that are occupied year-round. Remember to include outbuildings, fences, and so on when calculating the coverage you need.

Burglary can be covered, but not theft; in other words, for a claim to be considered, there must be signs of forcible entry and/or exit. Insurance to cover vandalism and malicious acts is not automatically included, but can often be purchased separately. In winter, make sure that snow does not accumulate on the roof; a collapse due to the weight of snow would not be covered. Your agent or broker can explain further. Although most policies covering cottages do not specify separate amounts of insurance for outbuildings, they do allow up to a specified percentage of the amount of insurance to be used for this purpose.

With cottage insurance, it's particularly important to invest whatever time it takes to be certain that you understand the policy's limits before you agree to coverage. Also, if your "cottage" is really more of a "second home", and has many of the features of a primary dwelling, you may be able to obtain better insurance coverage; again, talk to your agent or broker.

Please consult one of your brokers to assist you to determine the best solution for your individual needs.