Whether it's a cozy cottage in Muskoka, a cabin on Lake Huron, or a riverside retreat in Prince Edward County, vacation homes are a beloved part of Ontario summers.
But if you own a vacation home — or are thinking of buying one — it’s important to understand that seasonal properties have unique insurance needs. They're not just smaller versions of your primary home. In fact, how they’re used, where they’re located, and even how they’re accessed can make a big difference in how they’re insured.
In this blog post, we’ll explore what makes vacation home insurance different in Ontario, what risks to consider, and how to ensure your property is properly protected so you can make smart, informed choices.
Not All Vacation Homes Are Insured the Same Way
The first thing to understand is that insurers treat seasonal properties differently from full-time residences. A vacation home may be classified as either:
- A seasonal property (used only during certain times of year, often without winter access), or
- A secondary home (used more frequently and equipped for year-round access and services
This classification affects the kind of coverage available to you. In many cases, a seasonal property is only eligible for named-perils coverage, which means it’s protected against specific risks — like fire, wind, or theft — but not everything. A secondary home may be eligible for comprehensive (all-risk) coverage, which is broader and offers more peace of mind.
If you’re unsure which category your property falls into, your broker can clarify based on location, occupancy, and how the property is maintained.
Insurance companies classify vacation homes as higher risk for three main reasons:
1. Unoccupied Periods
A cottage that sits empty for weeks or months is more susceptible to break-ins, undetected water damage from water, weather, or pests, and fire. Some insurers even require someone to inspect the property regularly during the winter to remove snow from the roof and perform maintenance to prevent snow or ice build-up. This is often necessary to maintain coverage for structural and water-related claims.
2. Location-Based Risks
Ontario’s lakeside and rural properties often face risks that urban homes do not such as wildfire exposure, limited access to fire protection services, and increased flood potential. Properties located in remote or harder-to-reach areas may face higher insurance premiums or more restricted coverage due to these elevated risks.
3. Recreational Use
Vacation properties often come with boats, ATVs, docks, firepits, and guests. All of these add liability exposure, and without the right policy, you could be left paying out-of-pocket if something goes wrong.
What Coverage Do You Need for Your Ontario Cottage?
Seasonal property insurance is not one-size-fits-all. Your broker will help determine the right protection based on how the property is used whether it’s for family only, shared seasonally, or rented part-time.
Here’s what to consider:
✔ Named Perils vs. Comprehensive (All-Risk) Coverage
Some insurers only offer Named Perils coverage for seasonal properties, meaning only specific risks (such as fire or windstorm) are covered. Comprehensive (or All-Risk) policies provide much broader protection, covering all risks except those specifically excluded. While comprehensive policies are typically more expensive, they reduce the chances of unpleasant surprises when making a claim.
✔ Water Damage Protection
Water damage is one of the most common and costly types of insurance claims, and it’s especially important to consider in Ontario, where sudden spring thaws or frozen pipes during the winter can lead to serious property damage. Many insurers offer optional add-ons to enhance your protection, and you may be eligible for coverages including:
- Sewer Backup: Covers damage caused by wastewater backing up through drains or toilets.
- Overland Water (Flooding): Protects against water entering your property due to heavy rain, spring melts, or overflowing rivers and lakes.
- Ice Damming: Covers damage caused by ice buildup on the roof that prevents proper drainage, often leafing to interior water infiltration.
- Burst Pipes: Covers damage from frozen and burst pipes, often conditional on the property being properly winterized or regularly inspected during extended absences.
✔ Detached Structures
Detached structures, such as boathouses, sheds, garages, or bunkies are not always included in a standard seasonal property policy. These buildings often require separate listing and valuation to ensure they’re fully protected. If not properly insured, damage or loss to these structures may not be covered, leaving you responsible for costly repair of replacement. Be sure to review your policy and confirm that all outbuildings are included and insured for their full replacement value.
✔ Liability Coverage
Entertaining friends or renting out your property? It’s important to ensure you have sufficient liability coverage. This protects you if someone is injured on the premises — whether from a dock accident, a firepit injury, or a slip-and-fall. The appropriate amount of coverage can vary, so it’s worth reviewing your limits with your broker to ensure you’re adequately protected.
✔ Short-Term Rental Use (Airbnb, VRBO, etc.)
Most personal seasonal property policies exclude commercial use. If you plan to rent out your cottage, even occasionally, talk to your broker. You may need:
- A rental endorsement
- A standalone short-term rental policy
- Proof of inspections and compliance with municipal bylaws
Remember: Failing to disclose rental activity could lead to a denied claim or even void your policy altogether.
Tips to Help Manage Risk
- Install monitored alarms and water sensors: These can reduce risk and may qualify for discounts.
- Bundle your policies: Bundling home, auto, and seasonal property insurance can lower your premiums and simplify claims.
- Plan for regular maintenance: Seasonal inspections — especially in spring and fall —help reduce the chance of denied claims due to neglect. Insurers may also require you to shut off water and drain pipes during the off-season, especially during the winter.
- Confirm what’s included in your policy: Coverage for docks, boats, or ATVs isn’t always automatic.
- Most importantly, speak with your broker!
Every vacation home is different - whether it's lakeside, tucked in the woods, or shared with renters a few weekends a year. And that means no two insurance policies should be exactly alike. If you’re investing time, money, and memories into your seasonal property, it’s worth making sure your coverage reflects how you actually use it.
📞 Ready to review your cottage coverage? Before the next long weekend or rental booking, take a moment to connect with your insurance broker. They can help you review your current policy, flag any gaps, and recommend the right options.