Real Estate

Does a small cabin with no power require insurance?

Tiny cabin

Does a small 600 sq. ft. cabin with no power require insurance?

Legally? No. And cabins—especially the remote and rustic ones that are uninhabited for a good chunk of the year—can certainly be harder and more expensive to insure. Still, it’s a good idea. (Ever heard of Murphy’s Law?) Even if the building or the contents are worth very little, insurance experts recommend that you get third-party liability coverage to protect yourself in case someone gets hurt on your property.

Insurance for a vacation place works differently than insurance for a primary home. Many companies will only insure your cottage if you insure your primary residence with them. And policies for vacation homes are usually “named perils” policies (as opposed to “comprehensive” policies). This means you’ll only buy coverage for specific, more common, risks: fire, smoke damage, windstorms, etc.

Talk to your home insurance provider or another insurance expert to figure out the best coverage.