If you are looking for insurance for your cabin, you may not have thought of cabin insurance as a separate policy. But in the home insurance world, it’s absolutely essential. Think about it. Your cabin is your pride and joy on your property. It is probably your most expensive investment and needs to be protected just like every other structure on your property.
One particular difference to make with cabin insurance however, is that it’s completely separate from your normal homeowner’s policy. Talk to independent insurance experts to see which coverage suits you best. For instance, there are “hard” cabins such as cabin homes on lakes, which generally don’t fall into the category of standard homeowner’s coverage. Hard cabins are usually built with more protection in mind than traditional cabins, and insurance companies typically charge a higher premium to insure them.
This type of cabin insurance also falls under the heading of “seasonal home insurance”. Why is this? Well, the cabin is generally only used one out of every seven days throughout the year (or half of the year if you’re lucky). So “seasonal” means that the cabin insurance will cover you when it is “used”. Most policies also include coverage when the cabin is empty.
But what does “seasonal” cabin insurance coverage cover? Well, the basic plan will include coverage for both personal liability and bodily injury liability. This includes liability for guests or family members as well as that for anyone who may be injured while staying in your cabin. This is important because it helps to protect you against “prank call” lawsuits. Some insurance companies require that you carry more than just the liability portion of your primary homeowner’s insurance policy, but many times, it’s not enough. Having separate coverage will help to meet this need.
Other common questions about seasonal home insurance include those about how much it costs. There are two basic ways to go about getting this information. You can either contact your insurance agent directly or you can contact an independent insurance broker. While brokers have access to a wide variety of different policies and offers, most independent agents will have their finger on the pulse on price.
When it comes to pricing, there are two main factors that can affect your cabin insurance rates. One is the seasonal nature of your cabin. The second is the “depreciation factor”. Basically this means that the insurance company views your cabin as less likely to have a steady income over the years and is more likely to lose money on the property over time. For this reason, your cabin insurance premiums will tend to be a bit lower during the low points in your property’s value, which will run from three to ten percent.
Another factor that may affect your cabin coverage is the “wear and tear” on your property. This means that your property may have relatively little wear and tear if it’s just a one story home with a single level. On the other hand, a two-story home with two levels is considered to have more wear and tear and will probably be priced higher. You can make your policy more affordable by adding on additional coverage like extra vehicle coverage for your automobile.
In short, you should keep a few things in mind when buying cabin coverage. First of all, you should consider the seasonal nature of your cabin and only purchase coverage if your primary home has adequate coverage. Secondly, you should insure your cabin independently of your primary home to cut down on overall costs. Finally, make sure to get quotes from at least three independent insurance agents before settling on the most affordable policy.