Cabins are a home away from home like no other. Whether your cottage has been in your family for generations or you recently purchased a second home during the pandemic, there’s nothing quite like the relaxation that comes from spending the summer at your “camp” or cabin. However, just like with your primary residence, it’s important to protect it from risk particularly when you are renting it out on a short term or seasonal basise. The best way to do that is by investing in cabin rental insurance. Keep reading to learn more.
What is cabin rental insurance?
Cabin rental insurance, also referred to as cottage insurance or seasonal home insurance, aims to protect vacation homes in Canada that are being rented out on a short term or seasonal basis. Cabin rental insurance differs from typical home insurance as it is designed for properties inhabited seasonally, like cabins, cottages, camps, chalets etc. Depending on the coverage you choose, your cabin rental insurance policy should include liability and property insurance that will protect your property all year round regardless of occupancy, as well as its contents and any other dwellings or structures on the property.
What are the benefits of having cabin rental insurance?
The benefit of cabin rental insurance is that your seasonal property will be protected against all kinds of losses, from fires and water damage to explosions, smoke, third-party injuries, and more. Plus, cabin rental insurance not only extends to the main building, but can also cover your belongings inside the cabin, outbuildings, other dwellings on the property and other various types of physical assets provided they have been disclosed and underwritten for.
What does cabin rental insurance cover?
Coverage varies by policy, but standard cabin rental insurance typically includes the following:
- Dwelling protection coverage: This is “property” coverage that protects the home, including any outbuildings or attached structures like decks or garages. If any of these dwellings need to be repaired or replaced due to an insured loss, your cabin rental insurance can help.
- Personal contents coverage: The personal belongings inside your cabin, from furniture and appliances to clothing and electronics, will also be covered by cabin rental insurance.
- Liability coverage: Most cabin rental insurance policies include liability coverage, which protects you in the event that a third party injures themselves while on your property and this includes injuries to tenants that you have rented to.
- Living expense coverage: If you are forced to vacate your cabin while it’s under repair or if a covered loss renders your cabin uninhabitable, living expense coverage will help pay for your temporary relocation. Your insurance provider may compensate you for moving or lodging costs.
- Detached structure coverage: This protects any detached structures on your property, like sheds, docks, boathouses, pool houses, or detached garages from damage.
What is not covered by cabin rental insurance?
Depending on the policy you choose, recreational vehicles stored on your property, such as boats or jet skis, may not be covered by your cabin rental insurance. However, if they are disclosed and underwritten for various types of recreational vehicles can potentially be covered by cabin rental insurance.