Last updated: 04/10/2021 | Estimated Reading Time: 3 minutes
Holiday home insurance
If you're lucky enough to have a holiday home then you are going to want to make sure that it has appropriate insurance coverage. There are a few key differences between a standard home insurance policy and holiday home insurance, and as with anything this valuable you are going to want to make sure that you understand the difference. Fortunately, we've got you covered and have put together a quick guide so you don't get caught out.
In This Guide:
What is holiday home insurance?
Holiday home insurance is insurance for a household that you will not be living in at regular intervals and therefore requires a different policy to regular home insurance . More specifically you'll need holiday home insurance if the house is going to be left uninhabited for more than 30 days at a time. One aspect that home insurance and holiday home insurance are similar is that they will be split into two main elements:
- Contents insurance: this will cover the items within that aren't actually part of the building so things like TV and furniture
- Building insurance: this will cover the building and will protect against any structural damage caused by accidents or natural disasters such as fires or flooding.
Another thing you will need to consider if you will be renting out your property is public liability cover. This will cover any legal action or compensation claims from any third party. So if someone stays in your holiday home, breaks their leg and then decided to sue, you'll be glad you're covered.
It's important to note that although it might seem like an attractive prospect to take out home insurance on a holiday property because it's cheaper, in the event of a claim an insurance company would almost certainly refuse to pay out. It's not the correct cover for the use of the property.
Why is it more expensive?
In the eyes of an insurer a holiday home will bring with it many more risks than a normal home will and therefore commands a higher premium. The main reason for this is that it's likely the house is going to be uninhabited for an extended period of time, which means that there is a higher risk of somebody breaking in.
Secondly it means that there is nobody there to report and fix any damages. If something happens to the house, it could be weeks before anyone realises which could make the problem far worse. If you're going to be renting it out to guests, then this will of course increase the chances of you making a claim and will again increase the cost of an insurance policy.
What can holiday insurance cover?
As with most home insurance policies items above a certain value will not be covered as standard. If you have items that are worth a lot, then you will want to make sure to include them when working out your holiday home policy, especially if you plan to have rowdy holiday makers marauding around your second home. You'll also want to make sure that things like swimming pools, hot tubs or solar panels are included as they are not standard to most homes they will most likely need to be added on.
In some instances you can get money for travel and alternative accommodation costs in the case of an emergency covered as part of your specialist holiday home insurance policy e.g. water leaks or storm damage covered as part of the deal. This is something definitely worth considering especially if you have a holiday home in an exotic far flung part of the world as last minute flights and accommodation are often very expensive.