Protecting Your Property: The Need for Holiday Home Insurance. If you are a property owner, you should have home insurance to ensure that it is protected.
But did you know that you also need insurance for your holiday home?
Your second home faces the same risks as your primary home.
Therefore, it will require home insurance, as well.
However, a standard home insurance policy is not going to cover a holiday home.
What you need is a specialized holiday home insurance policy.
This is because a standard home insurance policy covers homes that remain occupied.
The situation is different when a house is empty for more than 30 days each year.
Why holiday home insurance is different
The insurance coverage for a holiday home will be different because there are more risks, such as property damage or burglary.
Since it is not occupied for most of the year, it might be too late before you discover a burst or leaking pipe, and some parts of the home have suffered water damage.
Protecting Your Property: The Need for Holiday Home Insurance.
Thus, you can understand why you need another insurance policy for your holiday home. You should also expect it to be more expensive.
How holiday home insurance works
Holiday home insurance is similar to standard home insurance in that it also comes in two-part –contents cover and buildings cover.
Plus, there are other stipulations because you rent out the home to other people.
Buildings cover – this part insures your second home’s structure again damage from storms, subsidence, flooding, or fire.
It protects the permanent fixtures in the holiday home, such as built-in closets and light fittings. Your mortgage lender may even insist that you get it.
Contents cover – this one ensures your things inside your holiday home, such as the furniture and other valuable items, like sporting equipment and appliances for entertainment.
Contents insurance is not mandatory, but it could be wise to get it since it will protect your possessions.
And since you have small or large houses for rent, consider getting holiday lettings insurance as well.
This will provide added protection against theft, lost keys, accidental damage, and more.
What should be covered by a holiday home insurance
Since you are renting out your holiday home, you have several optional insurance covers to choose from aside from the building’s cover, and the contents cover.
- Accidental damage.
This is a good option because most guests are not as careful as the homeowners.
- Loss of income.
This option protects your earnings if there is a need to cancel bookings because the property was damaged.
- Alternative accommodation.
Should there be a need to find alternative accommodation for your guests because of damage to your holiday home, this option will cover the costs.
- Public liability insurance.
Should someone become injured or die in your holiday home, this option will cover the legal fees.
- Employers’ liability insurance.
You need this if you employ a caretaker, gardener or cleaner for the holiday home.
Even if your holiday home is located outside the UK, you will find holiday home insurance providers in England that will cover second homes in selected countries outside the UK.