The time of year is back when people begin to schedule and book their vacations. If you want to get the perfect campsite or cottage that you have been eyeing now is the time to get it booked before someone else does.
Renting out your cottage is a great way to cover costs but it is important to make sure your insurance covers this type of use on your seasonal property. While some seasonal property policies may cover a couple weeks up to a month’s work of renting to others it depends on the insurance company and the type of policy.
Why You Need Cottage Rental Coverage
If a renter damages your property or gets injured in a way where you may be liable your basic seasonal property policy will not cover the costs. With the extra risk involved it makes sense to make sure you have the protection you need.
Things We Need to Know to Get You the Right Coverage
The insurance company your cottage coverage is placed with will depend on a lot of factors but one of the most important is for how long and often your cottage will be rented out. Some companies are ok with it being rented for a couple weeks at a time while others may be ok for up to six months or more. Doing daily rentals on a site like Air BnB may have you end up with another company again since some companies may not cover this type of risk.
Another factor that comes into play is how often you would be at the cottage to inspect it, some companies may wish to have the owner at the cottage a couple times a month where others may be ok with the owner only inspecting a few times a year.
Are you renting out or allowing renters to use any boats, jetskis or watercraft? If so this will be another important detail to discuss with a broker.
Insurance companies often like to see is that each renter is required to sign a contract, if you haven’t started doing this already we recommend you do so.
So whether you are just thinking about renting out your cottage or have been doing it for years, make sure to review your insurance policy and speak to your broker to make sure you have coverage in the event of a claim. Call Absolute Insurance Brokers today at 1-877-941-2266 to discuss your options before the season starts.