Is your client’s cottage protected against wildlife damage?

Is your client’s cottage protected against wildlife damage? | Insurance Business Canada

Property

Is your client’s cottage protected against wildlife damage?

Standalone coverage offers important benefits

Property

By
Nicole Panteloucos

Although August is officially behind us, reports suggest that warmer-than-normal weather will likely continue well into September, giving Canadians more time to enjoy their vacation properties and cottages.

According to a recent survey commissioned by RE/MAX, 13% of Canadians currently own a recreational home, while an additional 8% have said they plan on buying one in the future.

With more people working remotely and seeking escapes from urban areas, the demand for cottages has surged in recent years. In fact, Canadians are spending 38% more time at their cottages post-pandemic, a trend that is even more pronounced among younger owners, including Gen Z and Millennials.

As younger generations are beginning to invest more in recreational properties, it’s essential for brokers to educate clients on the appropriate coverages needed to protect their secondary homes.

What type of cottager is your client?

Typically, there are two ways to insure a cottage: either by attaching it to a client’s existing homeowner’s policy or by purchasing a standalone cottage policy. The choice between these options can significantly impact the type of coverage your client receives.

To keep clients adequately protected, Michelle Ng (pictured above), senior manager of product development at Aviva Lifestyle, highlighted the importance of brokers evaluating whether clients are avid cottagers or occasional visitors. For those who spend significant time at their cottage, standalone policies may provide more comprehensive coverage.

“When you insure a cottage under a homeowner’s policy, you typically piggyback off the coverages that the homeowner’s policy already includes. Standalone products are often better suited for avid cottagers because they offer more options, including a wider variety of endorsements and coverages that can be added,” advised Ng.

Of these extended coverages, standalone policies can offer robust protection for both the cottage building and its contents – making it a valuable option for clients who invest heavily into the interiors of their vacation residence.

Beware of bears, raccoons and squirrels

Aside from taking measures to protect valuable assets inside clients’ vacation homes, Ng shared that brokers should be aware of a key benefit of standalone cottage policies: protection against wildlife damage, which is often excluded from homeowners’ policies.

“Damage caused by bears, raccoons, and squirrels would typically be available in a standalone cottage policy versus when you’re including your cottage in your homeowner’s policy, as it’s not common to see homeowners’ policies include coverage for wildlife – that’s typically an excluded piece,” noted Ng.

Emphasizing the risks that come with the great Canadian outdoors, Ng said: “We’ve seen claims where insureds have left their cottages for the summer, not thinking about closing all their windows and leaving them open for maybe a couple of months. And then when they return to their cottage, they’ve had a whole family of raccoons living inside and, of course, destroyed the cottage quite a bit.”

Other tips to help brokers effectively guide clients in protecting cottages from outdoor risks include:

Avoid binding coverage in high fire risk areas: Do not bind insurance coverage in areas classified as high wildfire risk. This precaution helps ensure that clients do not mistakenly believe they have cottage coverage in restricted areas where insurance may be unavailable or limited.
Maintain a clear perimeter: Advise clients to regularly clear flammable materials, such as firewood and propane tanks, from around their cottages. Keeping grass short and removing trees close to the property can help reduce wildfire risk and prevent damage from neglect.
Install risk-preventative measures: Recommend the installation of centrally monitored water and burglar alarms. These measures can help prevent or minimize damage, especially when clients are not on-site.

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