What is "cottage insurance" and how can you get it?
If you're buying a cottage, you need to understand that you need cottage insurance. The "cottage policy" is similar to your home policy;
You require the building.
You need your belt.
You'll need the fundamental square footage.
You must be aware of any changes to your home.
You should know how old your plumbing is.
You need to know the type of plumbing you have.
You need to know the type of amperage you might have for electricity.
You need to know the type of heating.
Another very important thing is if you have a wood-type stove, you need to know if it's ULC certified. Your outbuilding sheds and boathouses are automatically covered by your cottage insurance policy. Just like your home insurance, there's not a standard percentage, and if there is, it's probably not adequate, so we really need to do this.
Why is this so?
Because you may have something that says boathouses are not covered by insurance. You might have an extra shed for a bed outside that could be a lot larger than normal. You might be covered under your policy, but if you have an outboard motor, anything bigger than a trolling motor, you're going to need coverage.
You're going to need a tablet for both, especially in the case of sea doors and bigger fishing boats, so once again get to make the model serial number. The age, the value of the boat that you purchased for yourself, and the price of it will be nominal for the protection you're going to get all right now.
What is ensuring what is exactly being valued?
Well, here's a big thing in the cottage. There are a lot of people because of their age and the rustic nature of cottages. I've always just put a very small value on it.
What are the most common types of losses for seasonal insurance companies, and what can cottage owners do to avoid damage?
It's a lot cheaper to pay two hundred dollars to take down a tree than to pay ten or twenty thousand dollars to have a tree fall through your house, and God knows how long it might be before you get back up there and what other damage could occur.
What are the main issues insurance companies deal with when providing insurance for cottages?
One of the main differences between your cottage and your home is the distance. Most cottages are located in rural areas, so they may be unprotected from a long way from home, but companies consider them unprotected as they lack access to the fire hall. They can be located on an island.
The other consideration is that they may not be accessible by road all year round. So these are the types of things you need to know when you're speaking to your insurance company. The other big thing in my mind that always comes up is the type of heating because a lot of people in the cottage consider it a summer thing, but as you know, some nights get cold and people put in wood stoves or they put in some substandard heating.
It's very important that when you're checking your cottage, once again, it's not earlier if you have a wood stove, that it's under it and that it's properly installed. If you have any type of oil heating, make sure that it's also properly installed. A lot of the time, in the older cottages. They might have put in underground oil tanks. This is highly unacceptable because it causes millions of dollars in environmental damage if not properly installed.
Do you need to increase your contents insurance in your cottage, say, because you temporarily brought personal property from home?
Here's the thing: if you're bringing stuff from home and it's going back to your home, that's covered by your home policy; you don't need to worry about adding that to your cottage policy. The only other thing you need to worry about in your content is, of course, whatever you might be keeping in your sheds. Yeah, the cottage coverage varies greatly from the new company.
So you must try it. You should try to get the best coverage you can for your policy because the premium difference isn't going to be that much. I mean, if you're on the island, you could obviously appreciate, well, you can't just take the water and put it right into your house. You still need the proper equipment to put out a fire.
Last words for anybody thinking about buying a cottage or getting cottage insurance?
Well, my last thoughts are to make sure your cottage is in charge of value. I like home insurance. They don't necessarily offer guaranteed replacement costs for your home. This means if you injure your cottage for $60,000 and it costs a hundred thousand to rebuild, you're not going to get that hundred thousand.
You're only going to get to $60,000. Another little point here too is that you will only get that percent, you can only get that percentage of the law, so if you're only sixty percent insured and you have a ten-thousand-dollar loss, a company can pay you sixty percent of your loss, so it's not only in the event of a total loss, it's an event of a small loss as well.