Canada - Top 5 Insurance Tips for Renting Out Your Vacation Property

With winter behind us and summer around the corner, you may be getting ready to rent out your vacation cottage or cabin. Last summer, such rentals were up 40%, making for one of Canada’s biggest rental seasons in decades, according to insurance firm RSA.
If you’re new to the rental business, you may not be aware of some of the necessary insurance requirements surrounding seasonal properties. As a member of the Top 5 in Real Estate Network®, I have seen many insurance nightmares arise out of insufficient coverage on cabins and cottages. Even if you’re renting to family and friends, you’re not safe from an insurance nightmare and need to be prepared.
Here are several steps from RSA that will help minimize your risk:

1. Ensure all structures on the rental property are properly insured, including docks, guest cabins, boathouses and, in some cases, even boats.
2. Take the same risk reduction steps for your cottage that you would for your house, such as checking smoke detectors, keeping a fire extinguisher on the premises and locking doors.
3. Provide operation instructions for anything the average renter might not be familiar with, such as a woodstove and a propane furnace.
4. If you are renting your cottage to families with small children, take a look around the property and see what improvements are needed to make it child safe.
5. Check on your property after the renters have left to ensure that windows haven’t been left open or taps left on.
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