Got a Cabin? Is it Covered… when Disaster Strikes?

You head to your cabin during the summer to enjoy peaceful, lazy afternoons with a good book and fun around the campfire in the evenings. Your own little slice of heaven. Hopefully you will never have to deal with any major catastrophes, but if disaster strikes, the best defense if to be prepared and educate yourself on your insurance coverage on your cabin.

Maybe during a casual evening cooking hot dogs on the fire, a typical Minnesota thunderstorm starts rolling through and you think, “Gosh, good thing we have insurance.” That may be true, but do you know for sure what is covered?

Generally, if your cabin gets water damage because a tree crashes through a window, your damages will be covered. However if that same thunderstorm causes the nearby river to crest and your cabin becomes flooded, those damages will probably not be covered unless you have specifically purchased separate flood insurance.

What is that same thunderstorm causes the tree to crash through your roof, instead? Most folks would be correct in thinking that insurance would cover such damage. What you may not realize at the time, however, is what will be replaced. In this case, you can expect to be covered for the replacement of your roof, minus any depreciation. So if your roof costs $5000 to replace and is 10 years old, you will be reimbursed only a portion of that money. The exact number will be spelled out in your claim documents and by your claims adjuster.

What about frozen pipes? Given the extreme weather we have in Minnesota, frozen pipes can be quite a problem. Whether or not your insurance covers this varies from carrier to carrier. Generally, you can expect the damage to be covered if you have done regular maintenance on the pipes and kept them in good repair, and the event or disaster was not anticipated and could not be prevented by your actions. Every situation is different, so if you have the unfortunate experience of your pipes freezing, it is best to contact your insurance agent immediately to explain the circumstances so you know what your options will be.

Another point to remember: Make sure for you “toys” at the cabin, your boat, jet skis, canoes, etc. have the right amount of liability insurance in case of an accident.

Owning a cabin can be your little piece of tranquility. If you currently own a cabin, or are looking at purchasing one, give us a call and we can help you find the best coverage for your budget and answer any questions that you have.