Island Cottage Insurance in Ontario: What You Need to Know

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The picturesque lakes across Ontario contains thousands of stunning islands! Many fortunate islanders own beautiful cottages. A piece of paradise surrounded by water on all sides. What’s not to love!  You are assured privacy, peacefulness and a quiet utopia away from the busy city.

While owning a cottage on an island is an investment, it is not one without some headaches. They are expensive to build, you must take a boat to access it (a positive for many) and sometimes the resale value suffers. Yet, many islanders will swear by the fact that it is the best investment they have ever made. To add to this, insuring an island cottage could also be on the higher side compared to road-access cottages.  .

In this article, Luca Ambrosino, insurance broker for Insure My Cottage, will explain several reasons why insurance rates are higher for island cottages.

island cottage insurance

Reasons why it’s expensive to insure an island cottage in Ontario


  1. High repair costs: Tools and materials must be transported across the lake or river. This transport cost and higher delivery cost increases the cost to repair an island cottage. Furthermore, sourcing technicians to work on the repairs in the islands can increase labour cost as well. All things being equal, an island cottage is more expense to repair and fix compared to one on the mainland with road access. Insurance companies factor this cost when assessing your premiums.
  2. High risk of floods: A cottage built on an island is naturally surrounded by water on all sides. It is also usually close to the water level which translate into a higher risk of flood. Although lakes in Ontario are generally not impacted by huge waves, there is still a higher risk that a flood will damage and sweep away a cottage compared to one on the mainland. This increased risk of property damage will result in an increase in insurance rates.
  3. Lack of fire department within the island: Island cottages have no protection from fire. You would think that being surrounded by water will help! However, without road access to a fire station, an insurance company will assess the risk as higher. Can you imagine how long it will take a fire truck to get to an island to put out a flame?
  4. Risk of theft: Lastly, while not a greater risk than any other 3-season cottage, there is a risk that island cottages are broken into during the winter months as they are for the most part vacant. With ice freezing across Ontario during the winter months, suspecting thieves can access island cottages using snowmobiles.

Do you own an island cottage in Ontario? Our insurance brokers at InsureMyCottage.Ca have a lot of experience insuring island cottages. Contact us today to discuss your needs and get a free quote!

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