Renting out your Cottage: Are you Covered?

With the cottage rental industry seeing huge growth in recent years, it has become even more important for cottage owners to ensure they are properly protected from risks, says leading home, auto and business insurer RSA.

"We have heard from Cottage Link Rental Management, one of the largest cottage and cabin rental agencies in Canada that they are seeing an increase in people interested in renting vacation homes this summer of up to 40 per cent," says Shelley Toyota, director of personal insurance at RSA. "Anecdotal evidence has shown more families are looking to save money by vacationing closer to home and more rental properties have become available as cottage owners who are having difficulty selling their properties attempt to rent them out instead."

With an influx of new rentals hitting the market, many may not be aware of the insurance requirements necessary when it comes to seasonal properties.

"A lot of people I talk to believe because they have cottage insurance they are covered when renting it out as a vacation property as well and that’s not the case," says Heather Bayer, president of Cottage Link Rental Management and administrator of cottageblogger.com. "They think because they are just renting it to friends and family that they are safe."

It’s very important that the cottage owner speaks with an insurance broker to make sure they get the proper advice and the right coverage in place before they rent out their property.

RSA wants to remind owners there are various steps that should be taken to minimize any risks on a seasonal property when renting it out including:

• Ensure all buildings on the property are properly insured including docks, guest cabins, boathouses and, in some cases, even boats
• Take the same risk reduction steps for your cottage that you would for your house such as checking smoke detectors, keeping a fire extinguisher on the premises and locking doors
• Provide operation instructions for anything the average renter might not be familiar with such as a wood stove and a propane furnace
• If you are renting your cottage to families with small children take a look around the property and see what improvements are needed to make it child safe
• Check on your property after the renters have left to ensure that windows haven’t been left open or taps haven’t been left on

Contact your broker to find out if you have cottage rental coverage, or call Rob Rotteveel for more information.

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