Canadians have faced unprecedented severe weather events, ranging from extreme cold to wildfires and floods. In 2023, these events led to over $3.1 billion in insured damages, marking it as one of the costliest weather years on record. Consequently, there has been a surge in home insurance claims, driving up insurance rates since last year. The rising construction costs also exacerbate the situation, making it more challenging to affordably repair affected cottages, especially in disaster-prone areas where affordable protection is scarce.
To address these challenges and save on cottage insurance premiums, here are six tailored strategies for Muskoka-Parry Sound cottage owners:
Shop Around
Obtain quotes from multiple insurers, considering at least three estimates before finalizing a policy. Review policies meticulously to ensure coverage aligns with your cottage’s needs and location-specific risks. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power.
Increase Your Deductible
Opt for a higher deductible, such as $2,500 or $5,000, to reduce monthly premiums. Ensure you have sufficient savings to cover the initial outlay in case of a claim. Customizing your insurance to designate different deductibles for add-on coverage can further enhance savings.
Bundle Multiple Types of Insurance
Take advantage of discounts by bundling your cottage and auto insurance policies. Some insurers offer even higher savings by bundling additional insurance types like RV, boat, jewelry, and life insurance. However, compare bundling deals between companies and ensure bundled coverage meets your requirements.
Ask About Available Discounts
Inquire about discounts for non-smokers, first-time cottage buyers, or those who have upgraded their cottage’s protective systems. Ask for a full list of available discounts to explore potential cost savings.
Avoid Making Small Claims
Minimize the number of claims filed, as insurers often offer policyholders discounted rates with a clean claims history. Assess the cost-effectiveness of filing a claim versus paying for repairs out of pocket, considering your deductible and potential long-term premium increases.
Make Strategic Home Improvements
Inform your insurer about renovations that may impact your premiums. Some upgrades, such as updating electrical or plumbing systems, installing monitored security systems, or investing in sewer backup valves and sump pumps, can potentially reduce premiums. Conversely, additions like swimming pools, extensions, or upgraded materials may increase premiums due to increased property value or added hazards.
Ensure you communicate any home improvements to your insurer to avoid coverage gaps. Seek advice from insurance professionals to balance cost-effective coverage and adequate protection for your Muskoka-Parry Sound cottage.
Protect Your Investment Without Sacrificing Enjoyment
While navigating the complexities of insurance premiums can be challenging, prioritize comprehensive coverage for your cottage. Consult with knowledgeable insurance professionals to assess your specific risks and coverage needs. Reach out to us at 📞 705-774-1144 for personalized guidance to safeguard your Muskoka-Parry Sound cottage investment and ensure financial security without overpaying for insurance premiums or click here to start your property search, and we can guide you to be where you wanna be!
