Is Cottage Insurance a good investment for you? : How to financially secure the safety of your second home 
Insuring your cottage or vacation house is not that different from insuring your primary home. If you’ve already gone through the rigors of finding the perfect home insurance for your primary dwelling, insuring your summer retreat is easy.
  
The first thing you need to think about is the location of your cottage or vacation house. If it lies outside the premises of your first home, you can either have insured separately or under the same conditions as your first home.  

Bear in mind, however, that cottage insurance is not as broad as conventional home insurance. This is because vacation houses or cottages are only occupied during the holidays. As we all know, when a house is vacant during long periods of time, they ironically tend to deteriorate faster.
  
We need to understand that insurance premiums are meant to buffer damages caused by accidents. This means that they are, in no way, supposed to be treated as funds for maintenance.
  
As someone insuring his/her vacation lodgings, you should also consider insurances for businesses. If you’re a landlord and you’re having the home rented by tenants, you should consider looking for an insurance that covers businesses. Technically, keeping a vacation home that’s not solely for your private use is tantamount to running a small resort business. Taxes and terms have to apply to these.

   
Insuring a home that’s in the fault line 
If your cottage lies near the beach of a tropical country, there’s a very high possibility that it lies in the fault line. If that’s the case, you might have a hard time getting affordable earthquake insurance because the risk here is higher. No insurance company would want to invest on risks that are most likely to happen.  

Getting flood insurance when your cottage lies near any body of water is also difficult. The same rules go: the lower the risk, the lower the insurance premium. If you want to save up on insurance premiums, you should take the trouble to make your home more or less flood-proof or earthquake-proof.  

Prior to building the home, you should have already checked its proximity to the fault line. If it sits near a place that’s anywhere near the fault line, you should either opt out of building your cottage, or have an architect construct it so it has more footing compared to conventional houses.  

If your cottage sits near a body of water, or a region that receives high levels of precipitation, you should think about constructing better drainage systems to “flood-proof” your vacation home.  

It might sound like a lot of hassle at first, but it’ll give you a better bargaining chip in getting a lower priced insurance premium. Insurance companies never fail to reward prospective clients that make the extra effort to take care of their homes.

      
Before you purchase the insurance premium 
You should really shop around first before purchasing a cottage insurance premium. Aside from making yourself “look pretty” in the eyes of insurance companies as a client, you should also make sure that you’re getting the best insurance premium for your circumstances.  
You should figure out the highest risk you plan to protect your second home from. If this is insurable, make sure that you’re getting one of the lowest priced premiums available in the market.