Most consumers view their cottage insurance similar to their home insurance. You provide your address and some details on the finishing of your cottage and the magical insurance premium is derived with similar coverage’s to your home insurance. What’s important to note however, is that you may have restricted coverage (named perils versus all risk) and you may be paying higher premiums than you should be.
You should always be diligent in providing your broker with as much information as possible so they can a) determine an appropriate replacement cost b) determine an appropriate fire protection rating and c) make appropriate loss control recommendations.
Cottages are comprised of many different building materials. Some, such as log construction can be more expensive, while others can be less expensive and therefore lower the replacement cost of your cottage. The type of materials and construction directly affect the insurance premium as it is directly related to the replacement cost of your cottage. Make sure you spend time with your broker to review these details and also provide your broker with updates as you make additions to your cottage.
The second piece of information that your broker can help advise you of is the fire protection in your area. Whether you have an island cottage, a remote retreat, or a cottage within a municipality with an organized fire department, fire protection in your area is also a substantial factor in determining your insurance premium. In particular, ask your local fire department if they have are an accredited superior tanker shuttle service provider. Many insurance companies provide discounts up to 15% if you are within 16km of an accredited superior tanker shuttle service provider. New halls are added every year so make sure your broker is up to date on these changes.
Lastly, make sure your broker has made the proper loss control recommendations to you with respect to your cottage. The values of cottages have increased substantially, and although they may be vacant most of the time, there are some things you should take into consideration. Whether your broker provides an inspection/recommendations or free WETT certification inspection like we do for our clients, proper loss control recommendations should be taken seriously and addressed immediately.
Blog brought to you by: James W. Grieve, B.Comm | Commercial Lines Manager Office: 905-425-0729 Cell: 289-314-9182 James W Kloepfer Insurance Broker Limited