Choosing holiday cottage insurance depends on factors and location. Homeowners may add their vacation home to their primary policy, but some may need a separate policy. Specialty policies offer limited coverage and liability considerations for renting. Renters should check their homeowner’s policy or consider traveler’s insurance.
There are different types of holiday cottage insurance and choosing a policy depends on a number of factors and the jurisdiction where the cottage is located. Owners of a holiday or vacation home may be able to add their cottage to their current owner’s policy, while others may need or choose to procure a separate policy for their vacation home. Some insurers offer special types of holiday cottage insurance that meet the particular needs and responsibilities of a holiday cabin or cottage while keeping policyholder costs low. Finally, those renting a vacation home may be covered by their homeowner’s policy while residing in the rental accommodation or may need the added protection of travel insurance.
For many people who own a second home that is primarily used for holidays, a separate holiday cottage insurance policy may not be required. Instead, homeowners may be able to add their second home to their primary homeowner’s insurance policy. Typically, insurance coverage will include both damage to the vacation rental as well as liability protection in the event a guest is injured while on the property. In some cases, however, landlords may wish to obtain a separate, specialized policy. This may be because the cottage does not qualify for standard insurance protection due to its construction or location.
Specialty vacation home insurance policies generally offer somewhat more limited and specific damage protection than standard homeowner policies. For example, vacation cottage insurance may limit coverage to certain events, such as a fire, but it doesn’t cover sewer backup or damage to outdoor areas. Because many vacation home owners regularly lend or rent out their properties to others, there will also be special liability considerations when issuing a vacation home insurance policy. Cottage owners should talk to their insurance professional about plans to rent or swap their vacation home with other people. This is especially important if the landlord has not previously rented out their property and already has insurance, as the decision to rent out the property can affect your current insurance coverage.
People renting a vacation home owned by someone else should also check their insurance coverage. Your homeowner’s insurance policy can cover unintentional damage caused by yourself and your family members. Another option is to purchase traveler’s insurance, which can cover the expense of unavoidable situations where a trip has to be canceled at the last minute. Both types of policies are very different, so it may be wise for a traveler to speak to an insurance professional before renting a holiday home.
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