As Canadians look for new ways to unwind and reconnect with nature, cottage ownership is a popular option. These secondary properties offer a slice of tranquillity close to home—think lazy afternoons on the dock, bonfires under the stars, and family memories that last a lifetime. Whether you dream of Spring Lake, Muskoka or the Laurentians, investing in a recreational property is about so much more than summer getaways: it’s about creating a year-round refuge.
But, regardless of if you already own a cottage, or you are ready to become one of the new “lakeside loungers,” it’s important to understand the unique responsibilities of cottage ownership—especially regarding insurance in Canada.
Why Cottage Insurance Matters
Owning a cottage isn’t the same as owning your primary residence. Cottages can sit empty for weeks, and even months at a time and are exposed to different risks, from unpredictable weather to accidental damage from renters or guests. Protecting your investment means choosing the right insurance coverage.
1. Renting Out Your Cottage? Tell Your Insurer!
Many Canadians offset cottage costs by renting out their property when they’re not there. But did you know this can impact your insurance premium? Before handing over the keys to guests, it’s essential to let your insurer know. Otherwise, if an insurance claim arises, you may not have adequate amount of coverage. Check out this guide for everything you need to know about cottage rentals and insurance.
2. Maintenance Isn’t Optional
Seasonal upkeep can help keep your cottage claim-free. That means everything from cleaning gutters to checking for water damage after the snow melts. Not sure where to start? Follow this opening checklist in the spring and this closing guide before winter hits. Proper maintenance can help protect your property.
3. Waterfront Properties Need Extra Attention
Dreaming of morning coffee by the lake? Waterfront properties are stunning, but they come with their own set of challenges. Depending on your plans (like adding a boat or dock), you may need additional permits or pay higher premiums. For tips on staying safe by the water, read these water safety tips for families.
4. Co-Owning a Cottage? Communicate!
Some siblings, friends, or families choose to buy a cottage together. If you’re considering co-ownership, make sure you’re all on the same page about usage, responsibilities, and, most importantly, insurance needs. Start by reading 10 questions to ask before choosing a cottage insurance policy.
Make the Most of Cottage Life
Once you’re protected, it’s time to enjoy your investment! Whether you’re looking for fun summer activities or tips on how to prepare for your weekend at the cottage, Allstate’s Good Hands Blog has you covered. Enjoy your “lakeside loungers” era and make the most of cottage season all year round.
Disclaimer: This information has been provided for your convenience only and should not be construed as providing legal or insurance advice. Allstate does not control or guarantee the accuracy of any content on any third-party site. Allstate is not responsible for the privacy practices of any third-party site.