Cottage Insurance in Ontario

Ontario Cottage Insurance Brokers

There's nothing quite like spending glorious Ontario summers up at the lake or in your countryside cottage. Indeed, for many Ontario homeowners, escaping to paradise and leaving the hassle of city life behind is the highlight of the year. Whether you go to one of the more popular locations like Muskoka and Gravenhurst or find a cottage in a smaller location, your cottage is a great break from your busy life. Children can take a break from school while splashing about in the water, and parents can escape for a few rounds of golf. Enjoying time up at the cottage is not only a welcome reprieve from city life, but it's also a place where precious family memories are created.

However, it's essential that you have Ontario cottage insurance to protect your home away from home. Since your cottage is likely vacant for part of the year, you'll want to have peace of mind knowing that it's covered in the event of an emergency if you are absent. Not to mention, while you're at the cottage, it's important to know you are financially protected with cottage insurance should an accident occur.

Buying Ontario cottage insurance financially protects your cottage and outdoor structures from risks such as fire, theft or vandalism. It also protects your personal items and provides liability coverage, which is essential for protecting yourself financially from having to pay medical bills or legal costs in the event of a lawsuit.

Cottage insurance is a necessity and provides more relevant protection than a typical home insurance plan would, and it is the best way to protect yourself and your property from perils. For example, if a thief breaks in and damages your cottage while you're away, cottage insurance can help to pay for these losses. Without the proper Ontario cottage insurance, you will have to pay for the costs of losses yourself. This can leave you in deep financial trouble. Suddenly, your peaceful place in cottage country has become a big source of stress.

Whether your Ontario cottage is located in Georgian Bay, Haliburton, The Kawarthas, Huron County, Prince Edward County, Frontenac County, Muskoka, Wasaga Beach, Long Point, or elsewhere, cottage insurance brokers can tailor a policy to your specific needs. Our team of licensed, qualified brokers are experts at working with individuals who own multiple properties, including cottages. We will work diligently to ensure you have the best coverage for your needs at competitive rates. Our goal is to give you peace of mind so you can enjoy time at the lake without worry.

Who Needs Cottage Insurance In Ontario?

Anyone who has a cottage should have a cottage insurance policy. It doesn’t matter if you’re renting it out to a tenant, using it for annual summer retreats, or a place you go back and forth to and from throughout the year; there’s always the chance something will happen to it, regardless of whether you’re there. If multiple people share the cottage home, it is best that they each have their names on the policy. For instance, if you share a family cottage with a set of siblings, and you all share the financial responsibility of the cabin, then you all need to be included on the cottage insurance policy. This is to ensure that anyone using the property at a given time is financially protected from a wide range of perils, regardless of who is residing in it at the time.

Why Do I Need Cottage Insurance In Ontario?

Seasonal homeowners should purchase cottage insurance to protect their investments against risks such as fire, vandalism, and personal liability. Whether your retreat is a cabin in the woods, a ski chalet, or a cottage, your seasonal property is your special place. It makes sense to protect your investment.

Just like your primary residence, your cottage needs protection. While we may not like to think about it, cottage properties can be at more risk for perils such as theft and damage by wildlife, not to mention damage from storms and weather events if you are only there for part of the year. For instance, if you only use your cottage in the summer, then there is a chance that over the winter, pipes could burst, or snow could cause damage to gutters and siding.

It's simply not worth the risk to go without Ontario cottage insurance. If you find yourself having to pay out-of-pocket for repairs or to replace the entire building, your dreams of languishing lazily at the lake each summer could be completely dashed—should you find the repairs are too much of a financial strain. Not to mention, it's not safe for you or your family to be without cottage insurance. Protect your investment and protect your loved ones with the right cottage insurance policy for your needs.

What Does Cottage Insurance Cover In Ontario?

If you feel your existing home insurance will be good for your cottage and its contents, you can add protection of your cottage to your primary home insurance policy. If you would like it covered differently, you can instead have it be part of a stand-alone secondary property insurance policy. Your main choice, however, will be the type of insurance you decide on, with your options being a comprehensive policy, a broad-form policy, or a named perils policy.

• Comprehensive cottage insurance coverage, which is an inclusive type of home insurance coverage, covers your cottage building, outbuildings, and other detached structures, as well as contents for all risks except those specifically excluded in the cottage insurance policy. It helps provide coverage against a wider variety of threats that you couldn't have possibly seen coming.
• Broad-form cottage insurance coverage is the opposite; it only covers specific perils detailed in the policy. The broad policy is a basic insurance policy that will likely have a lower premium while still covering basic risks. However, you may be able to add additional coverage to a broad-form policy if you need specific types of coverage.
• While what is covered in your comprehensive or broad coverage cottage insurance policy will vary per insurance provider, some of the most common perils such policies protect against include the following.
• Fire And EC is the most economical option. Similar to broad-form coverage, it only covers specific perils named in the policy, but will cover only the most common threats, such as fire and explosion. It is not recommended.

Property Damage

There are multiple ways that your cottage can be damaged. It's very important to have cottage insurance in Canada to provide coverage for damage caused by weather events, accidents and emergencies. Mother nature, criminals, and the environment around you can all do some damage to your cottage, and the last thing you'll want is to pull up to the cottage and realize your beloved property has gone up in smoke—and you have no way to rebuild it out-of-pocket. Don't let the place where you build precious memories become exactly that: a memory. Most cottage insurance policies will provide financial support to rebuild or replace the cottage—up to the policy limits. Common causes of property damage include:

• Fire
• Smoke
• Water damage
• Hail damage
• Vandalism

Please note, however, that this is not a complete list of dangers you will be protected from. Depending on your insurance provider, you might have some additional protection. Please speak with your Morison Insurance broker if you would like to know more about which protection you have in your policy, or would like to make changes.

Theft

If you spend long periods of time away from your cottage, it could become a target for burglars. Likely, you leave certain valuables and tools up at the cottage while you're away. This could include a television, computer, lawnmower or power tools such as a chainsaw. When you're gone, there is a high risk of theft—especially if you don't have a security system. Even if the thief is caught, your cottage may be too remote for local authorities to get there in time to arrest the thieves. That's why it's important to have an Ontario cottage insurance policy that will insure your valuables in the event they are stolen.

Contents Insurance

When it comes to cottage insurance, there are two main areas where you may experience loss. The first is damage to the physical structure itself. The second is damage to or theft of your valuables. While you likely don't have as many valuables at the cottage as you may in your primary residence—unless you are staying up at the lake for a while—it's still important to get contents insurance to protect the items you store regularly while you are away. Replacing items such as electronics, antiques, and more while staying at the cottage can be frustrating without proper contents coverage. To keep track of your items and their value, a great option is creating a home inventory list.

Liability Insurance

Personal liability insurance can protect you in two situations: a third party getting injured while on your property's premises and when you damage a third party's property. For instance, say a neighbour comes by to visit your cottage, but they trip on uneven paving stones and get injured. This could open you up to a liability claim. Should you be found at fault, you could be liable for medical costs and/or a legal settlement, as well as paying for legal fees. This could also happen if you damage another person's property—even if it was unintentional. For instance, say your gutters have not been properly cleaned, and the spillage causes severe damage to your neighbour's cottage's structural foundation. You could be responsible for paying to fix the damage—let alone for a legal settlement should they decide to sue. With the proper Ontario cottage insurance policy, you would be protected from these potential liabilities.

Outbuildings And Landscaping

With a comprehensive cottage insurance policy, outbuilding insurance and landscaping insurance are also included. This would protect sheds, boathouses, tree houses and more from damage as well. If you have a larger property, it's possible that a fire in the boathouse may not extend to your cottage. While this is good news for the cottage, you still want to be sure you have adequate coverage to replace the boathouse structure. Likewise, if you have costly trees or landscaping on your property, it's worthwhile to see if these can be covered by your cottage insurance policy as well. Your dedicated Morison cottage insurance broker will be able to go over the details of your policy so you know exactly what is included in the policy.

Are There Additional Cottage Insurance Coverages?

Yes. One of the main benefits of working with a cottage insurance broker is that they can help you purchase optional coverages that provide additional protection and further peace of mind. Additional cottage insurance coverages that you may be able to purchase include:

• Overland water coverage. This add-on protects your home from flooding due to rising water levels in lakes and rivers. A flood can be devastating for your property, damaging the cottage and also any outbuildings in the flood's way. Protect yourself from the risk of a flood—especially if your cottage is near a body of water—by adding overland water coverage to your cottage insurance policy.
• By-law coverage. Sometimes, changes in by-laws mean you have to make changes to your property to stay in-keeping with those by-laws. Renovation fees can quickly stack up. If your cottage is in a community, such as a small hamlet or village, it may be worth considering adding by-law coverage to your cottage insurance policy.
• Sewer backup or septic backup coverage. As mentioned earlier, this kind of damage is not usually included in a standard cottage insurance policy. However, it's most certainly worthwhile adding to your Ontario cottage insurance policy. Sewage damage can be devastating, not to mention a serious health hazard.
• Income replacement if you rent your cottage. Do you lease your cottage for part of the year? If it's damaged, you may find yourself a bit short financially. With cottage insurance income replacement, you don't have to worry about the loss of income due to repairs on the cabin after an emergency. It's important to note that rental income protection usually only lasts up to the policy's limits.
• Damage by bears, raccoons and squirrels. Pests can cause all kinds of damage to your precious vacation property. Protect yourself financially from making subsequent repairs by purchasing this cottage insurance add-on.
• Fire department coverage. Did you know that you could be charged by your local fire department for their services? While fire department services are typically covered by municipal taxes, this coverage may not extend to your cottage. Subsequently, if there is a fire, you may have to pay out-of-pocket for emergency response—unless you have this add-on as part of your cottage insurance policy in Ontario.
• Travel Trailer coverage. Do you have a trailer on your property? Whether it's an extra space where visiting friends can stay or you're living in a trailer while building your dream cottage, it's essential to protect it with the right travel trailer insurance policy.
• Frozen food protection. What many cottage owners don't realize is that if they leave frozen food up at the lake while they're away and it spoils, there is an add-on to their cottage insurance policies that can cover the replacement cost. While one or two frozen pizzas may not be worth insuring, if you hunt or fish and have significant produce in your freezer, it may be worthwhile to ask your cottage insurance broker about your coverage options.

What Is Not Covered By Cottage Insurance?

Speaking of what is not covered on your Ontario cottage insurance policy, like most policies, even the most comprehensive coverage will have exclusions. Some items that are generally not covered by cottage insurance policies include the cost of your mortgage, faulty workmanship, frozen pipes during the heated season, rust or corrosion from extreme temperatures, mold, or damage caused by your pet, raccoons, mice, skunks or squirrels. Below is a list of more items not covered by a cottage insurance policy.

• Mechanical breakdown. For instance, if your furnace quits on you—even in the middle of winter—you will not be covered to replace it. Mechanical breakdowns are often the result of poor maintenance or an aging machine. Cottage insurance policies tend to cover the unexpected, not routine issues.
• Septic or sewer back-up unless it is added to the policy. This is an important add-on to consider if you have a septic especially. Flooding can cause nasty back-ups that can wreak havoc on your property. Ask your Morison cottage insurance broker about what can be done to protect your asset in case of a septic or sewer back-up.
• Other people’s contents. Only individuals listed on the cottage insurance policy will be protected if there's an accident or emergency. For instance, if friends leave belongings on your cottage property or anyone stores their items on the property and a fire breaks out, these items will not be covered under the cottage insurance policy.
• Damage intentionally caused by the insured or family member. Any criminal act completed by the owner, including intentional damage or vandalism, will not be covered by an Ontario cottage insurance policy. Again, cottage insurance is to protect against the unexpected. Intentional damage certainly does not fall into this category.
• Earthquake. While earthquake insurance is not typically included in a standard cottage insurance policy, it can usually be added. If your cottage happens to be in an area at a higher risk for earthquakes, talk to your Morison cottage insurance broker about what they can do to mitigate the risk.
• Wear and tear. General wear and tear is a normal part of life. It's anticipated that as time goes on, your property will experience wear and tear and require routine maintenance to keep it in tip-top condition.
• Risks with two or more claims in the preceding three years. Property owners who are prone to making a lot of claims tend not to be afforded the same level of coverage as owners who have fewer or zero claims.
• Acts of terrorism or losses due to war. Usually, catastrophic events such as damage due to a terrorist attack or losses incurred during war are not included in a standard cottage insurance policy.

Are there Additional Cottage Insurance Coverages?

Yes. One of the main benefits of working with a cottage insurance broker is that they can help you purchase add-ons that provide additional coverage and further peace of mind. Additional cottage insurance coverages that you may be able to purchase include:

• Overland water coverage. This add-on protects your home from flooding due to rising water levels in lakes and rivers. A flood can be devastating for your property, damaging the cottage and also any outbuildings in the flood's way. Protect yourself from the risk of a flood—especially if your cottage is near a body of water—by adding overland water coverage to your cottage insurance policy.
• By-law coverage. Sometimes, changes in by-laws mean you have to make changes to your property to stay in-keeping with those by-laws. Renovation fees can quickly stack up. If your cottage is in a community, such as a small hamlet or village, it may be worth considering adding by-law coverage onto your cottage insurance policy.
• Sewer backup or septic backup coverage. As mentioned earlier, this kind of damage is not usually included in a standard cottage insurance policy. However, it's most certainly worthwhile adding onto your Ontario cottage insurance policy. Sewage damage can be devastating, not to mention a serious health hazard.
• Income replacement if you rent your cottage. Do you lease your cottage part of the year? If it's damaged, you may find yourself a bit short financially. With cottage insurance income replacement, you don't have to worry about the loss of income due to repairs on the cabin after an emergency. It's important to note that income replacement usually only lasts up to the policy's limits.
• Damage by bears, raccoons and squirrels. Pesky pests can cause all kinds of damage to your precious vacation property. Protect yourself financially from making subsequent repairs by purchasing this cottage insurance add-on.
• Fire department coverage. Did you know that you could be charged by your local fire department for their services? While fire department services are typically covered by municipal taxes, this coverage may not extend to your cottage. Subsequently, if there is a fire you may have to pay out-of-pocket for emergency response—unless you have this add-on as part of your cottage insurance policy in Ontario.
• Watercraft, ATV, and Snowmobile coverage. Your toys are one of the joys of being up at the cottage. Spending afternoons water skiing or fishing, or riding through the countryside on your ATV, as some of the top activities vacationers enjoy. That's why it's essential to protect these assets with the right add-on to your cottage insurance policy.
• Travel Trailer coverage. Do you have a trailer on your property? Whether it's an extra space where visiting friends can stay, or you're living in a trailer while building your dream cottage, it's essential to protect it with the right travel trailer insurance policy.
• Frozen food protection. What many cottage owners don't realize is that if they leave frozen food up at the lake while they're away and it spoils, there is an add-on to their cottage insurance policies that can cover the replacement cost. While one or two frozen pizzas may not be worth insuring, if you hunt or fish and have significant produce in your freezer, it may be worthwhile to ask your cottage insurance broker about your coverage options.

Do I Need To Insure My Recreational Items?

You should consider insuring recreational items such as boats, ATVs, jet skis, snowmobiles, canoes, kayaks, and other similar items. Coverage needs vary depending on the recreational item. Some items, such as trailers and canoes, may be covered under your home insurance policy or cottage insurance policy. Others, such as larger watercraft, require separate insurance policies. Your broker will understand the nuance and work to get you the best coverage possible.

You will want to be sure that you and your guests are covered by cottage insurance when using your recreational items. We always advise $2 million third-party liability coverage on your cottage insurance to protect you in case of accidental injury or damage while they are in use. Some cottage insurance brokers may recommend $1 million in liability coverage. The cost of an extra $1 million in liability coverage is very reasonable, especially when you consider the costs of legal fees and judgments for liability claims. If judgments and expenses exceed your coverage limits, you will have to cover costs that are over and above the policy limits.

Some examples of items insurance you can purchase separately for recreational vehicles include:

• ATV Insurance
• Boat Insurance
• Seadoo Insurance
• Snowmobile Insurance

How Much Does Ontario Cottage Insurance Cost?

The price of cottage insurance generally ranges from $800 to $3,000 annually. This cost depends on many factors, including location, the size of your cottage, how often it is occupied, and the replacement cost. If your cottage is large and features lots of amenities, it will cost more to insure. If your cottage is small and simple, the cottage insurance rate will be less.

It’s also important to let your Ontario cottage insurance broker know how often you’re using the cottage. For instance, is it a seasonal property that you mainly occupy during the summer months? Or is the cottage equipped for year-round visits? Permitting your cabin has a heat source, enabling you to be out there during the colder months, and you visit at least once every 60 days (or according to what is stipulated in your policy by the insurer), then it may be possible to insure your cottage as a secondary home. This provides different benefits when insuring it as a seasonal property. Your Morison cottage insurance broker will be able to provide further insight as to what level of insurance is best for your cottage.

What Factors Impact The Cost Of Cottage Insurance?

Here are some other factors that determine the cost of cottage insurance. When applying for cottage insurance, be sure you know the answers to these questions:

• Is there maintained year-round road access?
• What is the replacement cost?
• How often are you there?
• Do you rent it out?
• What is the distance from fire services such as a fire station and hydrants?
• How do you heat your cottage? Oil? Electricity? Propane? Do you have a wood stove?
• Do you want comprehensive or broad-form coverage?
• What is the location of the cottage?

It is also important to remember that these aren't the only factors that could impact the price of your cottage insurance. If you have any questions or would like a cottage insurance quote, please contact your Morison Insurance broker, who will be happy to address any concerns you have.

What Cottage Insurance Discounts Are Available?

There are several ways to save money with home insurance discounts on your cottage insurance. Discounts are offered for measures taken by the cottage owner to reduce the risk of a loss. By taking measures to reduce the risk of a loss, you can, in turn, often reduce your cottage insurance rate. For example, if you have monitored year-round heating or you are claims-free, cottage insurance savings may be available.

Here are some discounts that may help to lower your cottage insurance rate.

• Bundled home and auto insurance. If you combine your home, seasonal home, cottage, recreational vehicles or car insurance, even your business if you are a business owner, with the same insurance company, you can save on your cottage insurance. Some insurance companies offer 10% savings.
• Claims-free discount. Depending on the cottage insurance company, being claims-free means you could save 5% to 10%.
• Water alarm. Useful for monitoring flooding, a water alarm discount offers 3% to 5% savings with some cottage insurance companies.
• Power loss detector alarm. Depending on the insurer, you could be eligible for around 5% savings.
• Mature-age discount. Is your cottage where you spend part of the year post-retirement? Let your cottage insurance broker know, as you could be eligible for up to 10% savings with some insurance companies.
• Centrally monitored burglar alarm. Keep your cottage safe and enjoy up to 10% savings with some cottage insurance companies.
• Centrally monitored heating alarm. Watch your energy output and be eligible for up to 10% savings with some insurance companies.

Always ask about available cottage insurance discounts you may qualify for. These can save you money on your cottage insurance quote.

How Can I Further Lower The Cost Of Ontario Cottage Insurance?

It is understandable to want to save a little money and lower your Ontario cottage insurance quote. Luckily, this is possible. There are a few ways in which you can lower the price of cottage insurance:

• Increasing your deductible
• Not making claims on small losses to help remain claims-free
• Removing unneeded or redundant coverages
• Keep boat safety, ATV safety, and other related tips in mind to lower the chances of an accident

Please remember this is not a complete list of ways you can lower your premium. If you would like to know more ways to save on your Cottage Insurance quote, please speak with your Morison Insurance broker.

Do I Need To Tell My Cottage Insurance Broker That I Rent My Cottage?

Absolutely. Renting is a terrific way to help cover the costs of owning and operating a cottage; however, if you rent your cottage, be sure to share this information with your cottage insurance broker. Your insurance broker needs to know the details of your cottage and its uses to be sure you are adequately insured. If you rent your cottage and do not disclose this to the cottage insurance company, you may not be covered sufficiently. Renting tends to open property owners up to additional risks, so your insurance needs to change as soon as you rent out the property.

What Insurance Do I Need If I Rent My Cottage?

Some cottage insurance companies will cover your cottage while it's rented. The length of time of the rental period will come into play. Do you rent for a week or two? A month? More than 180 days? The entire season? Even if you're only renting your cottage out short-term, you should ask about rental income coverage. Some insurance companies include rental income replacement in a cottage insurance policy. Others may add this coverage to your cottage insurance as an endorsement. If there is a loss and you are unable to rent out your cottage, the endorsement can ensure the income you would have received from the rental is available to you.

Also note that some insurance companies include rental watercraft liability coverage in a cottage insurance policy, which is useful if your tenants are also using your boat or seadoo.

Is My Cottage Too Small To Insure?

No. You should insure your cottage no matter how small or simple it is. Cottage insurance will protect your seasonal home investment. Without cottage insurance, you will have to cover any losses entirely yourself.

How Is Cottage Insurance Different From Home Insurance?

Cottage insurance is different from homeowners insurance because the risks of protecting a seasonal home are different from the risks of protecting a permanent home. For example, unlike at your full-time home, you may only stay at your cottage for a few months each year, sporadically, or for several short periods annually. For the rest of the time, the property may not be occupied. An empty cottage can increase exposure to risks such as burglary, frozen pipes, and vandalism.

Also, cottages are often in remote areas. This can mean your seasonal retreat is farther from a fire station and/or not served by fire hydrants. There may be an increased risk of extensive damage if there is a fire because it may take longer for firefighters to respond, and a lack of hydrants can impact firefighting efforts.

What Will An Insurance Broker Want To Know When I'm Purchasing Cottage Insurance?

An insurance broker will ask you about your cottage and the surrounding property. Details such as its location, size, frequency of use, and amenities are things a broker will ask about. The insurance broker will need details such as if you have a bunkie, a boathouse, a fireplace, a hot tub, a garage, and further information.

Where Can I Buy Cottage Insurance?

You can get an cottage insurance quote from Morison Insurance. Morison Insurance is a 5-star brokerage that has been serving clients in Ontario for over 100 years. We are a family-run company, and we treat our clients like an extension of that family. To get started today, call us at 1-800-463-8074 or fill out the online form below for more information.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.