Spending quality time up at the family cottage is a favourite Canadian pastime, especially here in Ontario.
When you’re enjoying some much-needed R&R by the lake the last thing you want to be worrying about is your cottage insurance policy.
GET A FREE COTTAGE INSURANCE QUOTE
IS COTTAGE INSURANCE EXPENSIVE IN ONTARIO?
Like all types of insurance, costs will vary depending on the level of risk.
This means that the cost of insuring your cottage may be higher than your regular home insurance.
This is largely due to the increased risks a typical cottage experience since most are in remote locations and left unoccupied for a portion of the year.
Ontario cottages often experience an increased risk of many common perils including:
- Fire damage
- Busted pipes in the winter
- Fallen trees/branches
- Damage caused by wildlife
- Wind and flood
If no one is there to maintain the property and if it takes emergency vehicles longer to get to the remote location, naturally the chances of a cottage experiencing a significant loss are higher than other homes.
According to RateHub.ca the cost of cottage insurance in Ontario ranges anywhere between $800 – $3,000 per year and based on our experience we tend to agree with this estimate range.
WILL COTTAGE INSURANCE COVER YOUR DOCK?
While coverage for your dock is likely not included in your standard cottage insurance policy, it can be specifically named in your policy to be covered.
STANDARD COTTAGE INSURANCE COVERAGE INCLUDES:
All threats, unless excluded, for your:
- Building/structures
- Content/property
Theft coverage is included as a Named Peril but not Limited Named Perils likely does not include it (but could offer burglary/robbery protection if added by the policyholder).
Burglary/robbery requires physical evidence of a break-in for coverage to be claimed, theft coverage does not require physical evidence – i.e. door, window or locks physically broken to gain entry.
OPTIONAL COTTAGE INSURANCE COVERAGE CAN INCLUDE:
- Docks
- Boat
- RVs
- ATVs
- Travel Trailer
- Power outage
- Sewer backup
- Flood
Those related to RVs, ATVs and travel trailers typically require an auto insurance policy to be insured properly. Your cottage, and watercraft, can often be added to your existing homeowner insurance policy.
COTTAGE INSURANCE DOES NOT COVER:
- Frozen pipes
- Damage by animals
- Wear and tear
- Owner neglect, deliberate harm
- Earthquakes, landslides
- Mold, water damage
DO ALL ONTARIO INSURANCE PROVIDERS COVER COTTAGES?
Since cottages are often considered seasonal residences most insurers prefer to cover them when they also carry your primary home insurance.
This is mainly due to the increased risks that come with a seasonal residence due to it being left vacant for a portion of the year and often in a more remote location.
We at Erie Mutual Insurance fall into this category.
We can insure both your primary home as well as your cottage together on the same policy.
We offer cottage insurance as a seasonal dwelling and there are packages available that include contents normally kept at the cottage (aside from those items you may bring with you only for the weekend or summer while you are at the cottage).
The contents limits are lower than those of a homeowner policy which only makes sense since most cottages would have significantly less of your personal property items kept there.
Older cottages may also require upgrades in the electrical service to a 100 amp service and have limitations or exclusions to heating options such as oil heating not being covered. Wood heat may require approval and will need to be WETT installed and checked.
HOW ABOUT RENTAL COTTAGES?
If the renting of the cottage extends beyond personal / family use and is also a rental on an occasional basis then pertinent details must be made available for consideration such as:
- how often the cottage is rented
- what is included in that rental
Erie Mutual does not write rental cottages where a rental includes the use of any recreational vehicles including boats, seadoo or atv.
Erie Mutual also does not cover a cottage (seasonal dwelling) when it is situated on an island or inaccessible by roads by emergency vehicles.
Underwriting guidelines are based most often on a seasonal cottage which is a smaller frame dwelling used during the summer months or occasionally for weekends year-round.
Other options are often available for more grandeur-type properties which are used regularly (an agent may need to speak with underwriting for such specific risks to be considered an exception to the base guidelines).
These more pristine risks could qualify for a better coverage package but will also have additional qualifications that need to be met such as:
- A qualified building evaluation and pictures
- A minimum and maximum insurable limit
- Age of dwelling not older than x number of years
- Must be insulated with a primary central heating system, any woodstoves WETT certified
- Owner occupied only and visited a minimum number of x days per month year-round
- No oil heating for properties on/near water
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
