Cheapest Cottage Insurance Quotes
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- What is cottage insurance?
- Types of cottage insurance
- What cottage insurance covers
- Commonly covered perils
- How much is cottage insurance?
- What is not covered by cottage insurance?
- Other recommended insurance coverages you can add to your cottage insurance
- Factors that can affect your cottage insurance rates
- How can I get the cheapest cottage insurance?
- Frequently asked questions about cottage insurance
Content Manager
Updated On
June 25, 2024What is cottage insurance?
Cottage insurance – also known as seasonal or vacation home insurance – is coverage designed specifically for properties like cottages, cabins, chalets and lodges. You can purchase cottage insurance as an add-on to your primary home insurance policy or as a stand-alone secondary home insurance policy.
Cottage insurance covers everything regular home insurance covers, including the dwelling, personal belongings and liability. However, since cottages are unoccupied for long periods of time and located in remote areas, the risks are different, which translates to different costs and coverage. That’s why home and cottage insurances are sold as two different products.
Types of cottage insurance
Cottage insurance can be purchased in two different flavours:
- Broad form: This type of cottage insurance will protect your cottage only against the perils listed on the policy. If a peril is not listed, then it will not be covered. Given that the amount of protections offered by this policy is limited, it is cheaper than the alternative.
- Comprehensive: This policy type provides full protection for your cottage. There are some exceptions, however, which are usually listed on the policy itself. In this case, anything that isn’t listed is covered, and vice versa. Since this policy offers more protections than broad form cottage insurance, it tends to be on the more expensive side.
What cottage insurance covers
Regardless of the policy you choose, your cottage insurance will cover the following:
- Dwelling: Your dwelling is the main cottage building, in which you or your guests will stay. It will be protected against all covered perils – alongside the buildings attached to it, like a garage.
- Outbuildings: If you have any other buildings on your property, such as a shed or a gazebo, they will also be protected – though some policies may omit this coverage or offer only partial coverage. In most cases, you can purchase this protection as an add-on.
- Contents: Your policy should also protect any personal belongings you may have on the property, like your furniture, electronics and clothing.
- Additional living expenses: Should you become displaced due to a covered peril, your insurance policy will cover expenses such as food, clothing and lodging, so you’re not forced to return to your home or pay for those things yourself.
- Liability: If you end up sued for unintentionally injuring someone on your property or damaging the property of others, your insurance will protect you. Medical bills and legal expenses are also covered.
Commonly covered perils
Cottage insurance covers the same perils as your standard home insurance – though the risks of them happening may be higher or lower, depending on the peril. The covered perils include:
- Fire: Whether your cottage catches flame due to arson, forest fires or a stove you forgot to turn off, you will be covered. The only reason you might not be covered is if you purposely set your cottage on fire yourself.
- Lightning: A lightning strike can damage or break your appliances and electronics. If such a thing were to happen to your cottage, you would be compensated for the necessary repairs or replacement.
- Theft and vandalism: Since cottages remain unoccupied for long periods of time, they may be more susceptible to theft or vandalism. This coverage will provide the necessary protections.
- Water damage: If a pipe in your cottage bursts, or any of your appliances end up leaking, your insurance will cover the cost of repairing the resulting damage (note that this will not cover the cost of replacing or repairing the pipe or appliance itself). Sewer backup and overland flooding tend to be excluded from water coverage.
- Hail, wind or snow: If hail, wind or snow damage your property or cause other objects to damage it (such as a falling tree), your insurer will cover the costs.
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How much is cottage insurance?
Cottage insurance can cost $1,000 to $3,000 per year. The price will depend heavily on factors such as your cottage’s location, its square footage, your claim history and more. Different insurers will also have their own methods of evaluating your property, meaning that there is no way to accurately pinpoint the specific price your property will get.
Your best bet is to compare multiple cottage insurance quotes side by side, which you can do in seconds here on InsuranceHotline.com. In fact, you can compare over 50 quotes at once.
What is not covered by cottage insurance?
Your cottage insurance will not cover every kind of damage that can be inflicted on your property. Here are some common exclusions:
- Wear and tear: If your cottage suffers damage from wear and tear (think paint wearing off your walls over time), your insurer will not cover the costs of fixing it. That’s because insurance companies usually cover sudden damage from unexpected perils (such as fire or a storm). Damage from wear and tear is never sudden and is typically expected. That’s why it’s the owner’s responsibility.
- Damage from pests, insects or animals: Just like wear and tear, this type of damage falls strictly under the purview of the owner – since you can anticipate it and usually prevent it ahead of time (or before it gets worse).
- General neglect: If your cottage falls into disrepair due to neglect by the owner, your insurer will not cover the associated costs. For instance, if your roof starts leaking because you haven’t repaired it in over 20 years, then your insurer may not only refuse to pay for the roof itself, but for fixing the damage caused by the leak.
- Deliberate damage: If you as the owner deliberately damage your cottage, you will not get any coverage. This can also have legal ramifications, as filing a claim for deliberate damage can be viewed as fraud.
- Mold: Insurers do not cover mold. Like wear and tear and damage from pests, insect or animals, mold is largely preventable. Ensure your home is well ventilated and isn’t overly humid.
Other recommended insurance coverages you can add to your cottage insurance
Certain cottage insurance coverages will not be included in your policy unless you purchase them as add-ons (this applies to comprehensive policies as well).
Here are some of the most common add-ons you can purchase:
- Septic or sewer backup: If your cottage gets flooded due to sewer or septic backup, this will cover you. It may seem like standard water coverage should do the trick, but this isn’t the case for most policies. Consult with your insurer to see if you can purchase this as an add-on.
- Earthquakes or landslides: Most standard cottage insurance policies do not cover damage from earthquakes or landslides. That said, you can purchase this coverage as an add-on. The only time this may not be possible is if your cottage is an area where earthquakes are so common that they are expected.
- Overland flooding: If a nearby river, stream or another body of water overflows and floods your cottage, the ensuing damage may not get covered, as water damage coverage almost never includes overland floods. Floods from thawing snow or rain are also not included in standard policies but are offered as part of overland flooding coverage. You can usually buy this coverage as an add-on – though in certain flood-prone areas, it may not be an option.
- Outbuildings: It’s possible for your policy not to include coverage for other structures on your property, such as sheds, gazebos and the dock. However, in most cases, you can buy this coverage as an add-on.
- Vehicle protection: If you have vehicles on your property, such as a boat, RV, trailer or ATV, your cottage insurance may not cover them in the event of damage. That said, you can cover them at an additional cost.
- Additional contents coverage: If you have expensive items on your property, such as artwork or jewelry, you may want to purchase additional coverage for them. First, inventory all your items, assigning monetary value to each of them, then consult with your insurer to make sure this coverage is necessary.
- Cottage rental insurance: If your cottage gets damaged because you’ve rented it out to someone else, your property may be covered via cottage rental insurance. Depending on your provider and policy, you may or may not already have this coverage as part of your cottage insurance. If not, you can purchase it as an add-on.
Factors that can affect your cottage insurance rates
There are numerous factors that affect your cottage insurance rates. The most vital ones include:
Proximity to fire halls and hydrants
The closer your cottage is to a fire hydrant or a fire hall, the more likely it is to be saved in the event of a fire (or at least partially saved). Since cottages are usually ‘out of the way,’ it’s possible that your cottage is a good distance away from any hydrants or fire halls. This can increase your premium.
Heating source
Some sources of heat are less risky than others. Natural gas and electric heat sources are very common in Ontario, for instance, due to being safer. However, some cottages still rely on woodstoves and pellet stoves for additional heating. These are a little less safe, and as a result, can increase your premium.
Rebuilding cost
Insurers factor in the cost of rebuilding your cottage from scratch. To calculate the number, they often account for such factors as the home’s age, square footage, number of floors, materials and construction. As you might’ve guessed, the higher the rebuilding cost, the more you have to pay in premiums.
Location
Some locations are riskier than others. If your area is prone to occasional forest fires, for instance, then your cottage is at a higher risk of fire and smoke damage. In general, the more likely your area is to be affected by a peril, the more you will have to pay to your insurer.
Presence of personal belongings
If you have personal belongings stored on your property, your premium will be higher, since it would force the insurer to pay you more in the event of damage.
Piping and electrical wiring
Outdated pipes, such as galvanized steel or lead, are more likely to leak. Similarly, if your cottage has outdated electrical wiring, such as aluminum or knob-and-tube, then it is more likely to catch fire. The same applies if your cottage has fuses instead of breakers or an electrical service below 100 amps. All of these circumstances can lead to higher premiums.
Roof age
If you have not renovated your roof in over 20 years, then it’s more likely to be affected by issues such as poor insulation and leaks, which can cause severe damage to the rest of your dwelling. As a result, your insurer may refuse to cover more than 25% of the roof’s replacement cost in the event of a claim – and charge you a higher premium.
Renovations
If you renovate your cottage, and in the process, increase its replacement cost, your premium may be increased as well.
Rental
If you intend to rent out your cottage, then your cottage insurance is likely be higher as a result – since the presence of other people increases the risk of damage.
Claim history
Depending on your claim history, your premiums will be either higher or lower. The more claims you file, the more you have to pay in premiums. If you’ve never filed a claim, then your premiums should be low.
How can I get the cheapest cottage insurance?
If you find that your seasonal cottage insurance is too expensive, here are some steps you can take to make it cheaper:
- Increase your deductible: Your deductible is the amount you’ll end up paying out of pocket should something happen to your cottage. Because of this, the higher the deductible, the less you have to pay in premiums. Do note that if you don’t have enough money saved up to pay for damage down the road, the money you save on premiums will not be worth the effort.
- Install an alarm system: By installing a fire and/or burglar alarm system in your cottage, you can reduce the risk of fires and break-ins (including theft and vandalism). This, in turn, can lead to lower premiums.
- Update your electrical and/or plumbing systems: As we’ve already mentioned, if your electrical and plumbing systems are outdated, then your cottage is at a higher risk of fire and flooding, respectively. By updating those systems – so they adhere to modern standards – you can significantly lower your premiums.
- Protect your cottage from severe weather and floods: If you add a sump pump and keep your roof in good order, you are more likely to avoid damage from severe weather events and/or floods. Lower risk of damage translates into lower premiums.
- Ask for a loyalty discount: If you’ve been with the same insurer for several years – regardless of what you are insuring – then you may be entitled to a loyalty discount. If you’re close to renewing your policy, be sure to ask your provider about discounts.
- Switch to annual payments: Paying for your cottage insurance annually is less expensive in the long run – since monthly payments tend to incur higher administrative costs. The only problem with annual payments is that you have to have enough cash on hand to make them happen. And no, using your credit card will not work, as doing so will lead to interest charges, which may be even higher than your insurer’s administrative costs.
- Don’t over-insure your cottage: Avoid buying coverage you are unlikely to ever need. For instance, if your cottage is in an area where earthquakes are either rare or weak, then the likelihood of severe damage is improbable. Same goes for other perils, such as overland flooding. Stick only to essentials in your policy.
- Bundle up: If you have home insurance, car insurance or any other type of insurance, you can bundle them with your cottage insurance under the same provider, which can get you a discount.
- Comparison shop: Don’t settle for the first insurance provider you find – there are better deals out there. At InsuranceHotline.com, you can compare quotes from over 50 providers in one go, making it easy to spot the policy, provider and price that suit your needs best.
Frequently asked questions about cottage insurance
Find answers to all your questions about cottage insurance.
Can I bundle my cottage insurance with my auto insurance?
Yes, you can. In fact, if you want to pay cheaper premiums, you should bundle cottage insurance and auto insurance under the same provider. In addition to a lower price, your payment process will be much simpler, as you’ll only have to pay one provider.
I’m renting out my cottage. Do I need different types of cottage insurance?
If you’re renting out your cottage – privately or via Airbnb or Vrbo – you may need to add cottage rental insurance to your existing coverage. This will provide you with additional property and liability protections – in case your tenant damages your property or belongings or they injure themselves while on the property.
Your coverage will depend on how often throughout the year you intend to rent out your cottage and on the length of your rental periods. Some insurers won’t cover a rental period longer than four weeks, for instance. It may also matter who you’re renting to. If it’s your friends and family as opposed to complete strangers, then your premium may be lower.
It’s possible for a cottage insurance policy to have rental coverage from the get-go. Even if that’s the case, you should still mention to your insurer that you’re planning to rent out your property and provide them with as many details as possible. This will help you avoid issues down the road.
If you’re looking to rent out more than just your cottage – such as your jet skis, boats or ATVs – then you may want to purchase commercial insurance instead. This is especially valid if you’re renting out multiple cottages and vehicles.
What is the difference between seasonal home insurance and cottage insurance?
Since cottages are considered seasonal and/or vacation properties, there is no difference between cottage insurance and seasonal home insurance. In fact, cottage insurance is often classified as vacation and seasonal home insurance.
That said, if you own a home that’s meant for standard residence, but will remain unoccupied for over 30 days, then you may want to look into vacant home insurance instead.
Is seasonal home insurance more expensive than the standard home insurance?
It can be. Cottages tend to be unoccupied more often than standard homes, which increases the risk of damage from certain perils. For example, a burst pipe in an occupied home can be addressed immediately, whereas in an unoccupied home or cottage, it can leak for a long time, resulting in more damage. Furthermore, cottages are often located in remote areas, far from fire stations and hydrants, which means that they are more likely to suffer from things like fire damage.
On the flipside, it’s entirely possible that your cottage is much smaller than your primary home – in addition to being in a less crime-prone area. This can lead to your cottage insurance costing either the same as your standard home insurance or less. If the opposite is true, then your cottage may cost more to insure than your home.
As you can see, there are many factors at play here, so it’s best to consult with your insurer to get the exact cost.
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