Regarding the rental of one’s cottage, what should one buy in the way of insurance?
—Sharon
Check with the company providing your current policy. Depending on the rental arrangement, you may not need to buy anything at all. For example, your insurance provider may cover a 30-day rental at no extra charge. (It’s a very good idea to get written confirmation of this willingness to extend coverage on the Declaration Page of your current policy.) Or, your insurer may cover a 60-day rental for only a small percentage surcharge on what you’re already paying.
Our experts recommend having at least two million dollars liability insurance. Also, you may want to make sure your renters have their own property and liability insurance.
Will you include boats in your rental? General cottage policies often cover “incidental” watercraft that are 26 feet or less, such as pedal boats, rowboats, canoes, or small outboards up to 25 hp. If your renters will use anything larger, get written confirmation from your broker or insurer that your policies are adequate. And don’t forget that your renters need their Pleasure Craft Operator Cards if they plan to take anything with a motor out for a spin.
