Tips for Securing Affordable Cottage Insurance Rates in Ontario
Owning a cottage in Ontario allows you to escape from the hustle and bustle of urban life. However, it can also make a significant dent in your monthly budget. One of those expenses will be your cottage insurance, which is vital for your financial protection. While this insurance is essential, you don’t want to pay more than you need to. Finding affordable cottage insurance rates can seem like a daunting task but there are several ways you can make savings. Here are some expert tips to reduce your rates while still getting the coverage you need.
Assess Your Needs
Before even looking at insurance quotes, it’s important to assess your circumstances. You need to understand the features of your property and how they are affected. For example, if you have a watercraft, then you may need additional protection for it.
Equally, do you have any additional structures on the land or do you leave anything of significant value on the property? If so, you’ll want them to be protected. Conversely, if you also want to ensure you’re not paying for any additional coverage that you don’t need.
By understanding your property and coverage requirements, you can avoid overpaying for your premium while still having adequate protection.
Bundle Policies
One common strategy to reduce your insurance costs is to bundle insurance policies together. For example, you can combine your cottage insurance with your homeowner insurance to have a reduced overall cost.
It’s not just homeowner insurance you can do this with, so it’s worth asking to see if one of these discounts are available. This allows you to still get a sufficient amount of coverage but at a lower monthly cost.
Install Security Measures
Investing in security measures for your cottage is important for a few reasons. The first one is obvious, as it enhances the protection and makes your property less likely to be targeted by thieves and vandals.
The other is that it can reduce the premium you pay for your rates, as insurers will now see the property as less of a risk. Not all lenders will offer a significant discount for this, but it’s an investment that can often pay off in other ways.
Features such as burglar alarms, motion-activated lights, and high-security locks can all reduce the risks of break-ins. You should also consider additional measures such as fire alarms and fire extinguishers to reduce your risk.
Choose a Higher Deductible
Most insurance policies have a deductible, which is the amount you pay before the coverage kicks in. From the insurance company’s point of view, this helps to reduce the amount they pay out and can prevent smaller claims from being made.
The higher the deductible, the less you’ll need to pay in monthly premiums. However, you want to ensure that you are able to afford the deductible should you need to make a claim. If you can, this is a good way to reduce your insurance costs.
Shop Around
Settling for the first quote you have is generally a bad idea. It’s unlikely to be the best quote you can get and may not be suited to your circumstances. Instead, it pays to shop around and look at a few different insurers before settling on one.
Different insurers assess risk differently. Therefore, they can have big differences in the premiums offered. Online comparison tools are good for getting quotes, but an easier way can be to use an insurance broker.
An insurance broker can explore your options thoroughly and give you expert advice. Whether you use a broker or go it alone, look into several insurance providers. However, remember that the cheapest quote may not always provide you with the best overall value.
Maintain a Good Credit Score
Your credit score can have a big impact on your premiums. Again, this is done by the insurance companies to assess your risk, as the lower your credit score, the higher the chance that you’ll miss payments.
By maintaining a good credit score, you’ll be able to enjoy lower premiums. It’s also a good idea to check your credit score and go over its details. Mistakes happen, and there could be something negatively affecting it that could be amended.
Review and Update Your Policy Annually
Our circumstances never stay static from one year to the next. This is also true for insurance, and therefore you need to ensure it accurately reflects your cottage and its features. It could be that you have added or taken away features that can affect the cost.
For example, you may have added additional security features or removed a fire pit. Of course, this can work the other way, too. Even if your insurance increases slightly, you want to be sure your asset is protected.
Consider Seasonal Coverage
There are generally two types of cottage insurance, one which covers you all year round and the other, which is seasonal. If you only use your cottage during certain times of the year, then it may be better to opt for purely seasonal coverage.
This coverage typically lasts from spring to fall and can save you significant money. It’s a good idea to talk about your usage patterns with the insurer or your insurance broker so you’re not paying for coverage you don’t need.
Protect Yourself Against Claims
Your claims history will also affect your premiums and while some accidents can’t be helped, you can take steps to help safeguard your property. This will not only reduce the likelihood of making a claim, but it also makes your life easier.
Such steps include having a source of backup power, winterizing your cottage from the effects of ice and snow, removing valuables from the property when it’s not in use, and installing an alarm. With a better claim history, your insurance premiums will come down.
Final Thoughts
As we’ve seen, there are many ways to secure affordable cottage insurance rates in Ontario. By following our tips above, you’re giving yourself the best possible chance of reducing your payments while still being adequately covered.
However, it’s always important to remember that it’s often worth paying that little bit extra to have more peace of mind with your policy. If you are in need of cottage insurance or are looking for more advice, then contact Ron Johnston Insurance today and we’ll be more than happy to help.