You’ve always dreamed of a woodsy getaway. A place you can retreat to at a moment’s notice to get back to the relaxation that nature provides. Now, you have finally saved up enough to purchase the cottage of your dreams, and the time is ripe to buy your woodsy oasis.
Before jumping headfirst into the purchase, there are certain things to consider. One of the most important factors is the financial impact of a homeowners insurance policy. Getting coverage for a cabin or cottage differs greatly than getting coverage for the traditional home, so understanding the ins and outs of cabin insurance is crucial to making the right decision. Here are some basic things to know about cabin coverage:
Types of Coverage
When it comes to general cabin coverage, there are two overarching policies to consider. First, is that of a seasonal policy. This policy covers replacements on the property, the contents within your cottage, and other basic damages. Seasonal insurance is generally an extension of your current homeowners coverage, and considers the cabin as a vacation home.
The second form of coverage to consider is a secondary insurance policy. Insuring as a secondary home provides extensive coverage for the cabin, and provides coverage that is similar to a typical homeowners insurance policy. The specific criteria that deals with seasonal or secondary policies is often dependent on the insurance company you’re working with and can vary greatly in the cost of monthly premiums. Make sure to shop around when determining the type of coverage you need in order to get the best quote. Crunch the numbers on a homeowners insurance calculator to get an idea of what you’re in for.
Coverage Limitations or Restrictions
Given that a cottage home generally has more potential risks than a primary residence, most policies have some limitations in their coverage. For example, your coverage may have limitations placed on it if the home is not permanently occupied, which increases the risk of a burglary occurring. Another restriction is that of the property’s proximity to a fire station, given that the further away it is the less likely fire authorities can reach the cottage in a timely manner should there be an emergency.
The location and surroundings of your cottage heavily determine the availability of coverage, as well as the quotes insurers provide you. Choosing an area that minimizes limitation criteria will allow you to have more comprehensive coverage on your new vacation property.
Risks of Owning and Insuring a Cabin
Insuring a cabin comes with a set of potential risks. Large fallen branches, forest fire, or unkempt maintenance issues can cause these properties to be a major liability in the eyes of insurers. Before purchasing your cottage, take all of these things into consideration to get the lowest quote and maximize safety while you’re away.
Keep an eye on the location of the cabin, if any of the above-mentioned hazards pose a risk to the home, or, if there are other issues that could arise due to the placement of the property. Minimizing these potential risks not only gives you peace of mind, but ensures that getting it insured is a less costly process.
Making the decision to buy your woodsy retreat is an exciting time as a homebuyer. However, it is vital that this excitement doesn’t take priority over a well-researched and thought-out decision. There are a number of things anyone who wants to purchase a cabin should consider, with homeowners insurance being a primary factor on that list. By doing your research and taking risks into consideration, you can make sure the new property is a smart and worthy investment.