Do You Need Insurance for Your Seasonal Cottage?

A cottage getaway is one of life’s great pleasures—whether it’s a rustic lakeside cabin, a cozy ski chalet, or a summer retreat for family fun. But while it may not be your primary residence, your seasonal property still faces real risks and deserves proper protection. Cottage insurance helps safeguard your investment from fire, theft, weather, and liability—ensuring peace of mind all year long.

Please note: This blog provides a general overview of how car modifications can impact your insurance. It is not all-encompassing and should not be taken as specific advice. Be sure to discuss your unique circumstances with a licenced insurance broker to receive guidance tailored to your situation.

Owning a seasonal cottage is a dream escape for many Canadians. Whether it's a lakeside retreat for summer, a remote cabin for autumn getaways, or a ski chalet nestled in snowy hills, having a home away from home is a solace for many. Amid the relaxation and reconnection with nature, one important question remains: Do you need insurance for your seasonal cottage? The answer is a clear yes. Even second homes require proper protection tailored to their unique usage and risk profile.

Why Seasonals Still Need Insurance

Whether you're enjoying a quiet weekend getaway or winterizing for year-round use, cottage insurance acts as your safety net, protecting your investment. Even though your cottage isn't your primary residence, it faces real risks just like any home:

• Unattended periods make it vulnerable to fire, burglary, vandalism, and weather damage.
• Natural wear and tear can gradually worsen without regular maintenance checks.
• Liability risks still apply; imagine a guest slipping near a dock or a bonfire accident.

Seasonal cottages fall into a different insurance category than primary homes. Seasonal cottages often lack winterization and utilities, and are not occupied all year, making their coverage needs distinct and specialized.

Seasonal vs. Year‑Round Coverage Needs

Seasonal cottage insurance policies treat cottages differently based on usage patterns and property setup. In Canada, insurance providers recognize two main categories:

1. Seasonal Cottage Insurance

Designed for properties used only part of the year, often without plumbing or heating. Coverage tends to be more limited, typically protecting against named perils like fire, windstorm, or vandalism 
Basic coverage includes dwelling, select personal contents, liability, and often detached structures (such as sheds or docks). Additional living expense coverage may be optional, but it is valuable 
Seasonal policies often exclude:

• Frozen‑pipe damage
• Wear-and-tear or rodent infestations
• Sewer or septic backups
• Gradual deterioration 

2. Year-Round (Secondary Residence) Coverage

Ideal for cottages winterized for year-round use. These policies offer broader protection, often in the form of all-risks coverage, covering more unpredictable threats with fewer exclusions. You can build the policy closer to the protection level of your primary home insurance. 

Deciding which type of insurance coverage you need depends on how you use your cottage. Suppose your property sits idle for extended periods, especially through the winter months, and has minimal maintenance or no heating or plumbing. In that case, a seasonal cottage policy is likely the right choice. If your cottage is occupied or regularly maintained year-round, equipped with features like plumbing, heating, and accessible in winter, you'll want a secondary residence policy, which offers broader protection more aligned with a full-time home.

What Are the Most Common Risks?

Regardless of coverage type, there are core risks that every cottage owner should guard against:

Fire, Smoke & Wind Damage

From bonfire fun gone wrong to summer storm debris, fire and wind are serious threats. Named-peril policies regularly cover these, while all-risk plans include them by default. Claims data show fire remains the most frequent cause of seasonal home losses.

Water and Weather

Flooding, heavy rain, melting snow, and ice buildup can flood a cottage quickly. Basic policies often don't include overland flood or sewer backup, but these are available as add-ons. If your cottage is near a lake or uses septic systems, this is coverage you almost certainly need.

Frozen Pipes & Burst Water Lines

Winter isn’t kind to unheated cottages. Frozen pipes can burst and cause expensive damage, even in seasonal homes. This peril is frequently excluded as standard, which means you either need a cold-weather rider, proper winterization, or periodic inspections in sub-zero months.

Theft & Vandalism

Isolated cottages are tempting targets for break-ins, particularly when unoccupied. Standard seasonal policies typically include theft protection—but often limit coverage to high-value items—while all-risk year-round coverage is more comprehensive.

Liability Risks

What if someone hurts themselves? Whether it's slipping off a dock or falling off stairs, liability exposure is real. Both seasonal and year-round policies include liability coverage, protecting you from legal claims, even if you visit only on occasion.

Natural Disasters

Canada's varied climate demands coverage for natural hazards. Standard policies typically include coverage for fire and wind, but optional riders may be required for hail, wildfire, or earthquake protection.

Do Lenders Require Cottage Insurance?

If you're financing your cottage through a bank or mortgage lender, insurance is almost always mandatory. Lenders want assurance that their investment is protected in case of a loss. This usually means:

• Having a valid insurance policy in place before the mortgage closes
• Proving the policy is active and covers full replacement cost
• Keeping mortgage clauses and lender interest noted in the declaration

If your cottage is financed, speak to your broker to ensure your coverage meets lender requirements and protects your equity appropriately.

How Much Does It Cost?

Cottage insurance premiums can range between $800 to $3,000 annually, depending on several key factors:

• Location (proximity to water, remoteness, local claim history)
• Usage (seasonal vs. year-round) 
• Construction type and safety features (alarms, wiring, winterization systems)
• Extras (detached structures, boats, recreational vehicles, rental use)

These range estimates fall across various providers, but actual premiums depend on your circumstances and coverage choices. Optional add-ons (like overland flood, rental extension, or boat insurance) can also increase your premium but provide vital protection.

Common Mistakes to Avoid

1. Choosing the wrong policy type – seasonal vs. year-round
2. Assuming empty cottages are safe – long vacancy leads to gaps in coverage
3. Neglecting optional perils – sewer backup, flood, frozen pipe riders may be needed
4. Ignoring liability – even an empty cottage can cause injury
5. Hiding rental activity – short-term rentals often void standard policies unless declared 

How BIG Insurance Can Help You

At BIG Insurance, we treat your cottage like home because to you, that’s exactly what it is. Our experienced brokers:

• Assess whether seasonal or year-round coverage fits best
• Help you select the right named-peril or all-risk policy
• Advise on valuable optional updates—such as flood riders, rental extensions, or enhanced liability
• Coordinate with lenders and ensure proper endorsements and mortgage clauses
• Compare quotes to maximize coverage at the best price

Is your seasonal cottage ready this summer? It may not be your primary residence, but it still deserves and needs proper protection. From fire and theft to water damage and liability, unexpected events can strike at any time, and coverage tailored to the cottage’s usage and construction is vital.

Ready to Protect Your Cottage?

Ensure your retreat is fully protected with a policy tailored to your lifestyle and the unique risks your property faces.

Contact a BIG Insurance broker today for a no-obligation quote. We’ll help you choose coverage that gives you confidence so that you can enjoy your cottage with peace of mind, season after season.