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Like other kinds of property insurance, the type of cottage insurance you will need depends on the value of the property you insure, how you use it, and how frequently you are there. Because a cottage is considered to be occupied only part-time, there are additional risks for when the property is left vacant as damage might not be detected for some time and result in additional damage. For example, you may experience greater damage if a tree falls on your cottage and you are not aware, or can’t get there right away to alleviate the problem.

If you already have homeowners insurance in Edmonton, you may be able to get your cottage added on to your current policy or you may wish to obtain a separate stand-alone policy depending on its use. If you rent out your cottage, you should notify your insurer and inquire about supplementary insurance protection. Similarly, if you rent a cottage, you should find out if insurance is included with the cost, especially in the event of an accident or injury.

Adding a Cottage to Your Existing Homeowners Insurance Policy

If you add your cottage to a pre-existing home insurance policy as a secondary or seasonal location, then you need to be aware of what exactly you are insured for. With named perils, you have insurance coverage for specific risks only (such as damage to the cottage from fire, smoke, lightening, fallen tree) and not for unnamed risks. Damage from theft or vandalism can be more difficult or more costly to arrange if the property will be vacant for some time. As well, some policies will cover damage from critters and rodents while others do not, so it is important to speak to your insurance broker about your coverage before moving forward with a rental agreement.

You will want to review the total amount of third party liability, premises liability and contents coverage available. You don’t want to be underinsured if you have valuable contents that are permanently kept at the vacation home. Detached private structures, such as a boat house, garage or shed, are usually covered for a fixed amount.

Obtaining Separate Stand-Alone Cottage Insurance in Edmonton, Alberta

A separate cottage insurance policy is more comprehensive than adding your cottage to your existing home insurance, but some exclusions are common. Typical exclusions include losses from a septic backup, flooding, fuel oil release, and damage, or loss of motorized vehicles, campers, trailers, buildings used for business or farming purposes from lightening or earthquakes.

If you keep watercraft on your property, you may want to consider a separate boat insurance policy. A canoe, kayak or small sailboat may be covered, but a powerboat normally needs its own insurance.

Business and Vacation Rental Insurance

If you plan to rent out your cottage, protect yourself by notifying your insurer and be sure you obtain the appropriate insurance. Failing to do so will create headaches if something does happen, and could even lead to the cancellation of your policy.

Some insurers will allow a renter for a very short period (e.g., a week) and some will cover renters with specific conditions. Many policies exclude vacation rental activities, however, because they classify such activities as “business” activities. These exclusions make sense because the policy premium was not established with a view that you would be earning a regular income. As a result, there will be additional wear and tear on the property, and a greater risk of someone getting injured with more people on the property.

If you decide to rent out your cottage, consult with your insurance broker about your coverage. In order to be protected from any third party claim made while the cottage is being rented, you should ensure that you have adequate third party liability insurance. Also consider hiring a property manager for maintenance, especially to ensure that your property is safe for young children and elderly guests. Creating a rental agreement will further help to reduce your risks with renters. Here you should outline the number of guests permitted, whether smoking or pets are allowed, and the responsibilities of the owner and renter, among other terms.

Insuring Your Cottage Vacation

If you will be renting a cottage, check the rental contract to find out what insurance, if any, is included. Property damage is likely to be your responsibility in the contract. To protect you and your family, you may want to consider purchasing short-term travel insurance if you have no other insurance coverage, especially if the cottage is located out of province.

Prepare for Cottage Season with MBS Insurance in Edmonton

If you are looking to rent out your cottage, or are simply using it as a seasonal property, it’s important to obtain the proper insurance to protect both your family and your guests. If you don’t understand your coverage and are underinsured as result, you could find yourself having to pay out of pocket expenses if something were to happen.

Invest in the right type of homeowners insurance in Edmonton for your specific circumstances. At MBS Insurance Brokers Ltd, we have access to a wide range of companies that offer special packages and pricing options for different types of homes, including seasonal properties and cottages.

Contact us today online for a free quote, or at 780-436-7880.

How an Insurance Broker Saves You Time and Money

Do you know the benefits of an insurance broker?

Suppose you’re looking for the best insurance coverage at the best rates in Edmonton. In that case, you’ll first want to understand the benefits of an insurance broker and how they can help protect you in all sorts of different situations – whether it be saving you money, time or giving you simple peace of mind.

What Are the Benefits of an Insurance Broker?

Here are some of the many benefits of an insurance broker.


1. Saves Time

An insurance broker does all the work for you, so you don’t have to spend your valuable time shopping around for insurance. Instead, you simply provide your broker with information about your needs, and they shop the markets on your behalf.


2. Saves Money

Insurance brokers work with many different partners to find the best deals on the insurance that works for you. They take all your needs into account and make recommendations that are in your best interest. They have relationships with many insurance partners and can negotiate competitive rates and discounts, saving you money in the long run.

3. Expert Knowledge and Advice

An insurance broker provides you with the support and expertise you need to find coverage that suits your needs. They work with various products and services to find the coverage that best suits you. In addition, they can draw from an extensive knowledge base and experience to advise you on the best options. 

Insurance Brokers provide expert and unbiased advice. A wealth of knowledge about coverage and market rates combined with expert risk assessment ensures your possessions and business are adequately protected. Whether you are looking into auto insurance rates, tenant insurance, or home insurance rates, your insurance broker can help you every step of the way.

You can utilize their expertise to quickly identify your options and rely on their unbiased advice to help you make the best-informed decision for your situation.


4. Working For Your Best Interests

Since insurance brokers do not work with one particular company, they have nothing to gain from recommending a specific product. The insurance company also pays them a standard commission. Thus, there is no financial incentive to choose one insurer over another.

Insurance brokers have your best interests in mind. You can count on them to find you the best rate possible, which can give you the peace of mind you need. You can rest assured knowing that if you ever need to file a claim, one of our brokers will be there by your side to guide you every step of the way. They act as an advisor on insurance-related matters. They will shop the market for the best coverage and rates for you. Since fulfilling your needs is their only priority, they will provide independent, unbiased advice on the right coverage for your situation.

5. Privileged access and rates

Insurance Brokers have access to a wide selection of the best insurance companies in the country. These insurance companies are only accessible by Insurance Brokers. They do not deal with the public directly or with Direct Writers. Brokers enjoy long-standing relationships with these insurance companies. Still, they do not have an affiliation with any specific insurer, enabling brokers to provide you with a broader range of options at competitive rates.


6. Transparency

Insurance brokers must give full disclosure about their compensation and its effect on your insurance premium.  They are also required to declare any financial links with specific companies that may be a conflict of interest, enabling you to make the best-informed decision.


7. Risk and Advocacy Experience

Extensive experience dealing with different clients and claim situations equips insurance brokers with a broader perspective on how to reduce your risk. Also, in the event of a claim, you can count on your broker to act as your advocate with the insurance company and handle your claim fairly and promptly.

Speak to MBS Insurance in Edmonton about your Coverage

Reach out to MBS Insurance today to determine your home, auto, and commercial coverage options. Over the past 45 years, our experienced team of insurance brokers in Edmonton has earned the trust and loyalty of our clients by delivering superior products and services. We understand your needs and provide you with the best protection and rates.

There are many benefits of an insurance broker. We can help you understand the intricacies of your insurance plan while saving you money at the same time. We are a trusted insurance provider in Edmonton and provide personal and commercial insurance policies to people living in Alberta. We offer the best rates on recreational, auto, property, commercial, and group insurance policies. 

Contact us online for a free quote or by phone at 780-436-7880.

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This article was originally published on October 7, 2016, and updated for 2021.