Understanding cottage insurance

Cottage insurance (also referred to as seasonal insurance) reflects your part-time occupation of a particular property, which implies greater risk. While there are broad, comprehensive coverage options available (usually more applicable in cases where cottages are used year-round) to protect your cottage, detached buildings and belongings, most cottage insurance policies work on a “named perils” basis.

What does “named perils” mean?

Named perils cottage insurance means you have coverage for specific risks. For example, fire, smoke damage or an explosion. These are the more common risks covered by cottage insurance. There are also less common risks that can be covered by cottage insurance including vandalism or water damage. But for these, oftentimes it is more difficult to obtain coverage because your cottage has only part-time occupancy.

Picture this: a pipe bursts and causes significant water damage, or thieves break into your cottage and ransack the entire place. In either case, because your cottage is vacant at the time and there is no telling when your next return might be, the extent of the damage is likely to be greater because it will be discovered later than if you were living there full time.