2022-Jun-24
Are You Covered? Some Important Cottage Insurance Considerations
Questions, questions, questions…and you should find out the answers!
The beginning of the cottage season brings a big to do list: fix everything that’s not working, a ton of spring cleaning, check your boating equipment, and change the batteries in your smoke detectors to name just a few. One other job you should add to your list is to do a comprehensive review of your insurance coverages.
Fewer companies are offering cottage and boat insurance. Property values and building and repair costs have surged and prices for insurance are going up, but we strongly suggest this is something not to be skimped on. A lack of insurance can make a bad situation so much worse.
Remember that Rice Insurance offers a 15% discount to all GBA members on all your insurance needs. You can also ask your agent about potential ways to save on your premiums – like combining your policies, staying claim free, or a senior’s discount. Just make sure to ask the question.
Insurance is complicated but also necessary to protect you, your family and your cottage and vessels.
Here are a few things to consider:
What type of insurance do you have? Comprehensive insurance offers very different protection than named perils.
There are many questions. Do you have adequate coverage? Building costs are rising rapidly – does your policy cover replacement cost? Does your policy capture upgrades or additions that you may have made since you last reviewed your policy? What types of water damage does your property policy cover? Does your coverage include clean up after a fire or flood or other disaster? Is your property seasonal or year-round? What is your source of heating? What’s the age of the cottage? And likely many more, depending on your unique situation.
We strongly recommend liability insurance and it is relatively cheap for the protection it provides. Did you know that if someone slips and falls on that wobbly step, they can sue you? Liability insurance protects against this and more.
Another integral part of our Bay experience are boats. If something happens to your boat, what payout will you get in a write off situation? What repairs are covered? Will new or after market parts be used and to what amount? Did you know that if your boat leaks toxins or is in an accident the government will hold you liable for clean up costs? And note that having your boat on your home policy may not cover environmental damage and any claims on your home policy regarding boats will reflect on your home premiums. You can read Your Boat Insurance: Some Key Points to Consider for more considerations relating to boat coverage.
Do you rent out your place? Talking to your insurance agent is a must! It’s not just the use of the cottage you need to consider but also the boats. If you are including boats in your rental, you really should consider liability insurance for this and note this is separate from your general cottage liability. Boats must be seaworthy and licensed (if 10 hp or more) and you must verify that those operating the vessel are competent. Additional considerations for rentals can be found here: Responsibilities of Cottage Owners Who Rent or Lend Cottage Boats.
For a more fulsome discussion of these insurance questions and more, see: A Guide to Protecting your Cottage & Boats, and Other Georgian Bay Insurance Issues.
GBA Insurance Resources
- A Guide to Protecting your Cottage & Boats, and Other Georgian Bay Insurance Issues
- Your Boat Insurance: Some Key Points to Consider
- Responsibilities of Cottage Owners Who Rent or Lend Cottage Boats
- Future-proof Your Georgian Bay Home & Property
- Intact Centre on Climate Adaptation Home Flood Protection Program