From Annapolis Valley in Nova Scotia to Muskoka region, the Kawarthas, and Prince Edward County in Ontario to the Gulf Islands and Sunshine Coast in B.C., Canada is cottage country!
These and other popular regions are where Canadians flock to in the summertime to unwind and escape city life and submerge themselves in nature, often by renting a cottage or vacation home. The warmer months present a tremendous business opportunity for cottage property owners to rent their cottages, chalets, lodges, cabins, and summer homes. According to industry-wide statistics, annual revenue in vacation rentals in Canada is expected to reach $2.57 billion in 2023 and climb to $2.62 billion by 2027.
However, for property owners, renting their getaways to guests can pose significant financial risks. That’s because when a property owner rents their cottage or vacation home, it becomes a business. And homeowner’s insurance policies typically exclude coverage for commercial activities, including renting a cottage or seasonal property.
To adequately protect their properties and finances from damages and losses, cottage owners need liability insurance for cottage rentals.