Cottage Insurance

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Protecting a Home with Cottage Insurance

A cottage by the lake to visit and relax is the dream of many people and the reality can be even better. However, a vacation home should still be protected by insurance coverage. There is cottage insurance available that is designed exactly for this purpose. With a cottage home being uninhabited for portions of the time, there are many potential accidents that can occur.

Coverage Inclusions and Exclusions

If electrical cords cause a fire or there is a stove left on, cottage insurance will normally cover any loss due to fire, smoke damage or an explosion. However, they will not generally cover sewer systems, loss of refrigerated or frozen foods, fence repairs or landscaping costs. They often don’t cover water damage or vandalism either. If this is a problem in the area, it might be important to get a policy rider if possible. Having the property vacant and unattended part-time may increase the risk of these incidents happening.

Other Coverage

Additional coverage that may need to be acquired for cottage insurance is content coverage. If the furnishings and contents of the home have value, this type of insurance may cover it up to a certain limit. If the contents are transported from the primary home to the vacation home and back though, these items would be covered under the primary home’s home owner’s policy. An insurance representative can help determine what coverage is needed on the policy and if any additional coverage is warranted.

Third Party Liability Coverage

A vacation home may also carry an "attractive nuisance" risk. A hot tub may seem like an ideal place for local teens to hang out when there are no residents around or invited friends may use the deck to entertain guests. Either way, there is a possibility of an accident taking place. By having third party liability coverage on cottage insurance, it can prevent a lawsuit from affecting your personal finances. This type of policy protects against someone getting hurt when the home owner is not there.

How to Get Better Rates

Often cottage homes are in high risk locations. A tropical vacation home may be located near a fault line, a mountain home may be surrounded by pine forest and a lake home may be in a flood plain. To make the home more attractive to insurance companies, it is important to protect the home as best as possible. Create a home near a fault line with a stronger footing to prevent damage in an earthquake, build a break line in the trees for a cabin in the mountains or construct a better drainage system for a home prone to flooding.

How much coverage is included in the policy will affect the premium prices. However, by making the home as safe as possible from any potential threats, there is a better chance of getting the best premium rates. Be sure to read over any policy to determine if it meets the basic requirements that are needed and work with an insurance representative to find out if there should be any additional coverage added. By having cottage insurance in place, you are keeping your investment safe and ensuring many years of enjoyment in your vacation home.