Cottage insurance is a type of insurance that protects you from loss resulting from damage to your cottage. Cottage insurance premium depends on a number of factors including the policyholder’s age, and condition, location and age of the property. Comprehensive cottage insurance in Mississauga covers any damage to your cottage and its contents and also offers liability coverage.
Here are our top tips for choosing the right cottage insurance policy.
Assess Coverage Needs
Your cottage insurance coverage needs depend on how you use your cottage. If your property is a holiday home and you use it seasonally, consider opting for an insurance policy that offers liability coverage and covers damage to the structure. Pay cottage insurance premium on time and remember to renew your policy before the due date to protect yourself from loss when your cottage is occupied and unoccupied.
In case you live in your cottage, opt for comprehensive coverage. Cottage owners who rent out their cottage must invest in a cottage insurance policy that covers damage caused by tenants.
Understand Specific Risks
One of the most important things to consider when selecting a cottage insurance in Mississauga is the property’s location. If your cottage is located near a water body, purchase a cottage insurance policy that protects you from loss caused by water damage. Cottage owners whose cottages are located in disaster-prone areas should look for a policy that covers specific risks.
Make Sure Your Policy Offers Liability Coverage
If you have a cottage insurance policy that offers liability coverage and someone gets injured on your property, the policy covers legal costs and the injured person’s medical expenses.
Replacement Cost vs Actual Cash Value
There are two main types of coverages-replacement cost and actual cash value.Replacement cost value is the amount that the insurer pays you to rebuild your cottage or replace the items in it at today’s cost (no deduction for depreciation) after a covered event occurs. Actual cash value is the amount the insurance company pays you to repair your property after deducting depreciation (replacement cost-depreciation).
Though replacement cost cottage insurance policies are typically more expensive than actual cash value policies, consider opting for replacement cost coverage, especially if you store expensive items in your cottage.
Remember to Review Exclusions
Many cottage insurance policies don’t cover loss resulting from water damage or negligence. Before buying a cottage insurance policy, check exclusions.
Tips to Lower Cottage Insurance Premium
Here are some ways to lower your cottage insurance premium
- Consider bundling your cottage insurance policy with your home, auto, or any other insurance policy
- Make a claim only when necessary (consider paying out of pocket for minor repairs)
- Ask about loyalty and early signing discounts
- Compare quotes from at least three insurers
- Beef up home security and take steps (such as installing carbon monoxide and smoke detectors) to prevent accidents at your cottage
Solidify Insurance is a renowned insurance company in Mississauga. Our expertise enables us to tailor insurance policies to specific client needs.
