Factors used in determining the premium for your cottage property:
- The cost to replace the cottage with a new building at current rebuilding costs.
- The deductible you choose for the policy: $1000, $2500, $5000, $10,000.
- Distance to a responding fire hall or island property without a responding fire hall.
- The amount of contents coverage you require.
- The age of construction of the principal building.
- Age of the cottage owner.
- Centrally monitored alarm system.
- Claims free for the last 6 years.
- Mortgage free property.
- Basement finished or unfinished or no basement.
- Permanently installed backup generator
- Cottage association membership.
- Certified Wood stove heat in the cottage.
- Log structures or frame construction.
Cottage insurance is designed to help protect your investment and replace the building you have today with a new one tomorrow. People often overlook the value of the cottage building and financial investment they have made in the property. Should disaster strike the land will still be there but the building might need to be replaced. There are a few things to take into consideration such as the original type of construction, the square footage, the age of the building and features in the building. Often it costs more than you think to replace a building, as materials and contractor costs keep increasing each year. The location of the cottage plays a part in the reconstruction cost, the more remote the higher the cost to rebuild.
Liability coverage protects you if something goes wrong or someone is injured on your property.
The limit of coverage needs to be reviewed annually to make sure the cottage owner can replace the building with a new one should disaster strike. Speak with your local building contractor to help understand the cost to build a new cottage with similar finishing’s to the current structure. You also have to be aware of the cost to replace your contents in the event of a loss. Please note that each policy is different, and replacement cost on contents may not always be provided.