Why do cottages and cabins need different insurance?
![wood pannel cottage with large windows]()
There’s a lot to consider when it comes to insurance for a cottage or cabin. There can be a lot of threats associated with insuring a seasonal property. Here are several considerations:
A cottage often sits empty for extended periods of time
Lots of things can happen in a seasonal dwelling. They can get worse if you’re not there. For example, water damage occurs and isn’t immediately remedied. Or there is a break-in – by either human or animal intruders – leaving your place more vulnerable.
Many policies on cottage & vacation properties are outdated
You’ve perhaps heard that vacation property values in many parts of Ontario have more than doubled since 2000. If your cottage is not insured for current market value, it would be devastating to experience a loss resulting in a total replacement.
Costs for cottage insurance
Your cottage insurance coverage may be more expensive than your home insurance. This may not seem right because your house is likely worth more, you spend more time there and you have more belongings. It boils down to premiums being higher because the threats are greater at a more remote, largely unoccupied property.
For example, the threat of a property-destroying fire at a city house located close to a fire hydrant and served by professional firefighters is far less than one starting at a remote seasonal residence located a dozen or more kilometres from a fire hall served by a volunteer force.
It can also cost more because there can be many buildings – from bunkies to boathouses (and boats) – that require coverage. And probably the most significant factor is reconstruction costs associated with a remote property, which can require more costly transportation of labour and materials – especially if it is of log construction requiring specialized skills and is accessible only by water.
