Holiday homes can be a great investment as they provide an easy option for a holiday 365 days of the year. Many people think that holiday homes are easy to insure as they aren’t lived in as much. They are however considered very risky by insurers. A holiday home can be vacant for long periods of time which creates further issues. Theft is often more likely in an unoccupied house and visitors to a holiday home do not take as much care as the owners.
Therefore you will need an insurance cover specifically for second homes or holiday homes. A normal landlord insurance policy will not cover you and would not pay out in the event of a claim.
What does holiday home insurance cover?
Most holiday homes cover all risks from a standard policy but include periods where the home is vacant or family and friends are in the premises.
Cover for second homes or holiday homes can vary depending on the insurer. It is important from our point of view to know exactly the cover that you need. Instances that may be covered:-
The policy would include accidental damage by anyone occupying the property.
Home Emergency Cover
Some insurers will include a 24-hour emergency helpline if you need help in a domestic emergency such as a burst pipe.
Loss of Rental Income
If the property is uninhabitable after a flood or fire it is comforting to know that the insurer will cover your loss of income. Most insurers, however, will only look to cover the loss of pre-booked income. They cannot recover income if there were no bookings lost.
Insurers will cover the cost of placing your guests in alternative accommodation if the property is uninhabitable due to unforeseen circumstances.
What should I do with my holiday home to try and reduce the insurance premium?
- Make sure that your policy covers exactly what you want. Some quotes may be cheap but they don’t have the comprehensive coverage you need
- Improve the level of security. Make sure to kit the property with approved security standards such as alarms and window locks
- Look at the excesses. A voluntary excess could reduce the premium. That excess would have to be paid in the event of a claim so it needs to be set to an affordable amount
- Keep the home in good condition. Maintain the home so that it does not fall into disrepair. This will include the insulation of any pipes and tanks to prevent them from freezing in cold weather
- Make sure to have contents insurance to cover personal possessions at the property
A holiday home is more vulnerable than your own home. Mainly due to the risk of multiple vacant periods. It is not a standard risk so you should speak to us regarding what cover you need. Our policies will cover:
- Loss of rent and alternative accommodation
- Costs and expenses to trace and repair the source of damage following an accidental escape of water
- Your legal liability as owner of your home
- Damage to gardens following an insured loss
- Contents in garages and outbuildings if caused by theft
- Contents whilst temporarily removed
- Office equipment
- Property in the open within the boundaries of the home
- Replacement of locks following accidental loss or theft of keys
Request a call back if you would like a quote for your second home or holiday home.