Cottage Q&A
QUESTION
We are considering renting our cottage out for a few weeks each summer. Do you know of any insurance
companies that will provide coverage for properties that are rented on a part-time or occasional basis?
Todd Stooke, Crystal Lake, Ont.
ANSWER
While some companies are reluctant to provide rental insurance for cottagers because of increased risk, others will offer partial or full coverage. R. Robertson Insurance Brokers in Toronto, for example, sells an insurance package specifically for cottage landlords. The policy covers a rental period up to 60 days.
Have you checked with the company that provides your existing policy? That should be your first step, says Eve Patterson, Ontario regional manager for the Insurance Bureau of Canada. If your insurer agrees to coverage, a policy change may not be required, although in some cases you might need to pay additional premiums. Your insurance company may want to be notified of the exact dates a property will be rented and might only agree to coverage for a set number of weeks. Be sure the company sends you a letter stating what has been agreed to, and ask whether there are any limits to liability. For example, coverage rarely allows more than $1,000 for your boat, says Patterson. Cottagers often decide not to include boats in a rental, if they’re worth more than the insurance limit, as well as to protect themselves from liability in the event renters injure themselves or someone else. Cottages, because of their remote locations, are usually not covered for vandalism or burglary, unless you pay extra.
Christine Langlois
* Published in the September/October ’07 issue of Cottage Life.
