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Your guide to seasonal cottage insurance in Canada
What is cottage insurance?
Cottage insurance is a type of insurance designed for cottage properties that are used seasonally. In this guide, we'll walk you through cottage insurance for your seasonal cottage: What it is, what it typically covers, and why it matters.
Seasonal property vs. secondary property
TD Insurance classifies cottage properties as either seasonal or secondary, and it's an important classification because it determines the type of insurance for your cottage that may be available to you.
Broadly speaking, a seasonal property is one that can't be used year-round, while a secondary property can be used all four seasons. Other factors your insurer might look at include the frequency and type of occupancy, the availability of year-round access, and whether the cottage is insulated.
How your cottage property is used will impact your coverage options, so be sure to talk to a TD Insurance licenced advisor about getting the right insurance for your cottage needs.
Is there a difference between coverage for a cottage that's a seasonal property vs one that's a secondary property?
Yes, there's a difference between the two types of policies. A secondary property policy usually provides coverage similar to the coverage provided by your home insurance policy (typically, All Risks Coverage, in insurance language), while a seasonal property policy offers more limited coverage (Named Perils coverage).
What is Named Perils coverage vs. All Risks coverage?
Named Perils coverage (also known as basic form coverage) covers only the risks specifically listed in the policy. So, for example, seasonal property insurance for your cottage will typically include coverage for fire, but not vandalism. (We'll go into more detail about the coverage you'll get for seasonal property insurance below.)
All Risks coverage (also known as comprehensive form insurance) covers your property and belongings against all risks (with the exception of any exclusions specifically listed in your policy). Home insurance policies and secondary property policies generally offer All Risks coverage. For example, TD Insurance's home insurance policies provide comprehensive form insurance/All Risks coverage.
What's covered by seasonal cottage insurance?
Since seasonal cottage insurance offers the more limited Named Perils coverage, you'll only be covered for risks or events that are specifically listed in your policy (this typically means coverage for common claims such as fire, explosion and smoke.)
But what if your cottage has specific insurance needs not met by these basic coverages? A number of optional add-ons may be available for seasonal cottage policies, and could be a great way to customize your policy to meet your needs.
Does cottage insurance for a seasonal property include liability coverage?
Yes, generally, cottage insurance includes liability coverage, up to the limit specified in your policy.
Does seasonal property insurance include coverage for the contents inside my cottage?
Yes, seasonal cottage insurance helps protect the contents of your cottage — but keep in mind, your coverage only protects your contents against damage from the specific risks listed in your policy. So, for example, a basic cottage insurance policy will cover fire-damaged contents — but you wouldn't be covered for any damage that occurs if your cottage is vandalized.
Also, the coverage provided by seasonal cottage insurance is on an actual cash value basis — meaning you'll only get the depreciated value of any contents covered rather than the replacement value.
For additional coverage, talk to your insurer about any add-ons that may be available. For example, vandalism coverage is often available as an optional add-on for cottage policies.
Does cottage insurance for a seasonal property include liability coverage?
Yes, generally, cottage insurance includes liability coverage, up to the limit specified in your policy.
Am I covered if there's a break-in at my seasonal cottage?
Break-ins are usually considered burglary events, which aren't covered by basic seasonal cottage insurance. But, if you'd like burglary coverage, you can purchase it as an optional add-on to your policy.
Am I covered if there's a break-in at my seasonal cottage?
Most property policies, including cottage insurance (and home insurance), don't protect against animal damage—unless the damage resulted from one of the risks listed in your policy. So, for example, if mice slip in through a crack and gnaw on your furnishings, it likely wouldn’t be covered But if those same mice chew on the electrical wiring, causing a short that leads to a fire, the resulting fire-related damage would be covered.
Will I be covered for water damage at my seasonal cottage?
While water damage is usually one of the basic coverages offered by both seasonal and secondary property insurance, keep in mind this coverage only applies to sudden and accidental water damage (for example, if your pipes were to suddenly spring a leak).
Why should I buy cottage insurance for my seasonal property?
Just like your home, your cottage needs protection against damage from common risks like fire or lightning. Cottage insurance, designed to be a cost-effective way to meet the insurance coverage needs of properties used seasonally, helps give you that protection.
Can I rent out my seasonal cottage and still be covered?
Be sure to check your cottage insurance policy to see if your coverage still applies if you rent out your cottage. To qualify for cottage insurance with some insurers, for example, your cottage must only be occupied by you (and any guests you've invited to join you)—so, to get coverage, you wouldn't be able to rent it out to others.
What other property is included in my seasonal cottage insurance coverage?
Your cottage premises likely includes more than the cottage itself. We've answered some common questions you may have about what is (or is not) covered by seasonal cottage insurance.
Are detached buildings such as bunkies or sheds covered?
If you also have other buildings like bunkies or sheds on your cottage premises, they'll be covered by seasonal cottage insurance. The amount covered will depend on your policy (plus there may be certain limitations) so be sure to check your policy for specifics or talk to your insurer if you have any questions.
Will my boat be covered?
Cottage insurance might provide coverage for your boat, but it will depend on the type of boat, the specs of its motor (if it has a motor), and the specific scenario leading to the damage or loss. For example, small personal watercraft such as a rowboat would likely be covered by your cottage policy, while a sailboat or motorboat would not (but you could get coverage for them with boat insurance).
Is my ATV covered by cottage insurance?
No, ATVs aren't covered by cottage insurance, as ATVs need to be insured by an auto insurance policy. Learn more about ATV insurance here.
Does insurance cover the dock at my seasonal cottage?
Yes, cottage insurance generally covers docks on your property, but only for the risks specified in your policy. Your dock would be protected for damage caused by these risks, subject to any exceptions (and, as with all insurance, the extent of your coverage will depend on the terms and conditions of your policy).
Is my power generator covered by seasonal cottage insurance?
If your cottage's power generator gets damaged, your coverage will depend on what caused the damage. Generally, damage to power generators will be covered if it doesn't fall within an exclusion in your policy (for example, power surges are a common exclusion) and:
- the damage was caused by an event listed in your policy (for example, fire)
or
- the damage was caused by a risk covered by an optional add-on coverage you've purchased (for example, vandalism or theft).
Damage to a power generator that doesn't meet these criteria usually won't be covered.
How much will insurance for my seasonal cottage cost?
Because the coverage provided by seasonal cottage insurance is limited (and, as we mentioned previously, is based on the actual cash value of your cottage, generally a lower amount, rather than its replacement cost), insurers will typically use a different set of rating factors to calculate your premium than they use for determining the cost of your home insurance. To learn more about how much your cottage insurance premium will cost, contact us to talk with a TD Insurance licenced advisor.
Can I insure my seasonal cottage with a different insurance company than my house?
Some insurers might insure your seasonal cottage even though you're not insuring your home with them —but there's often a financial benefit to going with the same insurance company that's also insuring your home. Purchasing multiple policies with an insurer lets you take advantage of any bundling discounts or savings your insurer may provide. If you already insure your home with TD Insurance, for example, and you decide to also insure your cottage with us, you'll receive our multi-home discount.
Tips for protecting your cottage
In addition to cottage insurance, there are several things you can do to help protect your cottage (and all the fun moments you'll likely have there!).
Checklist for opening your cottage in the spring
To get a good start to cottage season be sure to check for damage in your cottage and on your cottage grounds, and make sure utilities such as your water are turned on and running well. Here's an in-depth cottage opening checklist to get you ready for cottage fun.
Checklist for closing your cottage in the fall
At the end of cottage season, you want to prepare your cottage the best you can, so it can weather through the winter without you. Here are some tasks to include in your cottage closing checklist:
How do I get seasonal cottage insurance?
Talk to a TD Insurance licenced advisor to learn more about coverage options for insuring your cottage. They'll be able to answer any questions you have and give you a quote.
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The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.
In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence.