Will this be the summer of visits to the cottage? According to a Léger survey commissioned by Allstate Canada, it could be. Almost a third of Canadian respondents (31%) say they will spend time at a cottage this summer. Beyond that, 57% of respondents say they plan to be near water this summer, which could include lakes, rivers and pools.
Cottage Renting Insurance Liability
If you have a cottage or backyard pool, you may be looking to generate some extra income by putting it up for rent this season. However, many Canadians may not understand their insurance liability coverage in doing so. According to the same Léger survey, almost three-quarters of Canadian respondents (74%) are only somewhat familiar or not familiar at all with their insurance liability coverage for renting out their cottage, and more than half of them (54%) are only somewhat familiar or not familiar at all with their insurance liability coverage for renting out their backyard pool.
“It is very important for Canadians to speak with an insurance agent to ensure they have the appropriate coverage before they choose to rent their property,” says Gene Myles, Agency Manager at Allstate Canada. “Depending on their plans, they may need a separate insurance policy to provide the appropriate coverage. Even if they’re not planning to rent out their property but will be hosting friends or family this summer, in some provinces they may require an endorsement added to a policy and in other regions, they may require an increase in their liability coverage.”
Contact your insurance provider to ensure you have the appropriate damage and liability coverage before you begin renting out your cottage, backyard pool or other property. Some policies do not allow for this type of activity, and you may be liable if someone is injured during their stay.
Tips for Cottage Owners
In addition to insurance coverage, the Good Hands Advice team has asked the Life Saving Society for some tips for cottage and pool owners to keep in mind this summer.
- Restrict access to water when unsupervised – If no one can supervise swimmers, it’s best not to take any chances and close accessways. Make sure you always follow safety guidelines and maintain control over access to the pool or natural bodies of water, such as lakes, rivers, spas and even wading pools.
- Powered watercraft are for licenced operators – All powercraft boaters are required by law to carry a Personal Craft Operator (PCO) card.
- Properly communicate rental rules – To help protect everyone, provide a list of rules that include measures to limit access to water equipment.
For more information about property insurance, be sure to talk to an agent to explore what is right for you.
Disclaimer: This information has been provided for your convenience only and should not be construed as providing legal or insurance advice.
About the Léger survey
Léger was commissioned by Allstate to conduct a survey among Canadians to find out their plans for the summer regarding spending time near the water, as well as their knowledge of their insurance liability coverage for different situations. To meet research objectives, a web survey was conducted April 8-11, 2022, among a sample of 1,538 Canadians, aged 18 and over, who could speak English or French. To ensure a representative sample of the population, the results were weighted according to the gender, age, mother tongue, province, education and the presence of children in the household.