If you own a holiday property then you must give the type of insurance you buy a lot of consideration.

You should be aware that most standard home buildings and contents insurance policies will not be suitable for either holiday lets or second properties.

This is for two reasons. First of all, standard policies do not provide cover where a property stands empty for a long period of time.

Secondly, they will not cover tenant occupancy. The financial ramifications of getting the wrong type of policy could be huge, so making sure that you get the right holiday home insurance is a must.

When getting insurance quotes, always tell the insurance company what the property will be used for. For example, if the property will stand empty for a lot of time as you will be using it as a second or holiday home, then the insurer will need to know for how long and how often this is likely to be.

However, if you intend to use the property as a holiday let, then you will need a different type of insurance – landlord insurance.

Landlords insurance is used where people have buy-to-let properties and, as more people invest in properties to let, the need for this type of insurance is growing.

So when looking to insure your holiday home, do ensure that you choose the right policy to ensure that you are adequately protected and use a specialist broker.

Finally, do check that your holiday home insurance has extended contents cover and liability cover. This will protect both you and your guests should the unexpected happen.

©2012 Landlords Building Insurance. All Rights Reserved.

When it comes to buying your holiday home then you should know all you can about the subject and what it involves both the good and the bad. Holiday home insurance does vary from company to company and knowing who gives the best deal and what the insurance involves can become a nightmare to those who know nothing about this sector. Trying to get the best deal by yourself is next to impossible simply because not all insurers offer the same cover.

The biggest problem for insurers when it comes to insuring the holiday home is that the property will be standing empty for periods of time; some insurers will ask certain requirements of the home owner such as draining off the heating system of the property while it is empty or tuning off the water supply.

There can be many exclusions within a policy and the majority of people simply aren’t aware of these until they try claiming. However a specialist broker will be able to find the best and cheapest insurance for you and your circumstances which can help you to avoid making costly mistakes.

There are also many different components that make up holiday home insurance and it is essential that you understand exactly what is needed for your circumstances. If you are going to be letting your holiday home then the insurance becomes even more comprehensive, if you are having tenants in the property then you need to be covered for liability. This means that you are covered should through any fault within your property – such as faulty electrical wiring – a tenant should get hurt. Along with this you will also have to safeguard yourself against the possibility that you could lose rental income and you will also need protection for the possibility of any damage caused by those renting the property.

Again going with a specialist broker is the best way to ensure that you will get the best and most comprehensive deal when it comes to the insurance along with the best holiday home insurance information for your needs.

©2012 Landlords Building Insurance. All Rights Reserved.

Considerations

When buying holiday home insurance, you would have to make sure that you have a realistic sum insured. One of the factors which should be given some thought is the rebuilding costs of the property. This is essential as unlike your own home, you have no control over what the people do within the property. They could, for example, smoke, and be careless. If your holiday home was damaged by fire, then the cost of rebuilding and removing the rubble would come to hundreds of thousands of pounds.

You also need to ensure that other items such as outbuildings and, if you have one, a swimming pool, are covered.

Index linked cover

When looking for insurance check to see if the cover is index linked. This means that inflation would be taken into account. Another point to consider is that if you make improvements to the holiday home, you do then need to let your insurer know so that you policy can be adjusted accordingly.

Contents insurance

You would also need to come to an estimate as to the contents of the holiday home. This means going around the property and calculating all the items within it. Do not forget to count items such as pots and pans and cutlery. Even the smallest of items should be included as they can soon add up if you had to replace them.

Rental income cover

When comparing the cost of insurance for your holiday home check to see if the insurance policy would pay out for loss of rental if the property should be damaged and become uninhabitable for a while. You could lose an enormous sum just in letting costs if you were unable to let it out while rebuilding or repairs were taking place.

Accidental damage cover

Other things to look for in your holiday home insurance include accidental damage to either the contents in the holiday home or the building itself. Some insurers will provide this cover. It can make sense to take photographic evidence of the goods, including serial numbers where available, so that in the event of claim, you have everything you need to hand.

Also check for any exclusions and limits on certain items as all insurance providers offer different terms. Liability cover could also be included in your insurance. This would pay out in case any of the guests are hurt while staying in your property. Always read the small print that comes with the policy to ensure that you know exactly what the cover entails so there are no nasty surprises if you have to make a claim.

©2012 Landlords Building Insurance. All Rights Reserved.

Why can holiday home insurance be harder to obtain? There are two aspects in particular of a holiday home that make insurers very cautious:

1. The possibility that it may be let out as a holiday rental, which would mean large numbers of different people coming and going.
2. The possibility that it may be left unoccupied for longer periods than an ordinary residential home.

Both of these mean that as far as insurers are concerned there are more risks attached to a holiday home than to an ordinary residential home. For this reason it is very unlikely that you will be able to insure your holiday home as an extension to the policy on your main home. You will need to find a specialist holiday home insurance provider, or a specialist broker.

When you are discussing your holiday home insurance policy, you need to be absolutely certain that it includes all the essential elements. Otherwise you may find you are not covered when an emergency happens. So what are the elements that need to be included?

• Buildings insurance. As with your own home insurance, you must insure for the cost of rebuilding, not just for the current market value. However, your own home insurance is likely to include a condition limiting periods of unoccupancy to a maximum of 30 days. If your holiday home is going to be unoccupied for longer periods, the policy will be more expensive, but even more essential.

• Contents insurance. Contents cover furniture, electrical appliances, soft furnishings – anything you would take with you if you moved. Make sure you find a policy that covers you for replacement value on a new-for-old basis – that is, don’t just insure your contents for what they would sell for now, but for what it would cost to replace them. Remember you aren’t just insuring against theft, but against fire or flood damage. Try to find an insurance company that will reduce your premiums accordingly the more precautions you take against theft, fire and flood. (You shouldn’t leave personal valuables such as jewellery in the holiday home when you’re not there – your holiday home insurance probably wouldn’t cover them. If you take them with you on holiday, you should insure them under your home contents policy.)

• Public and employer liability insurance. Anyone who comes into, or near, your holiday home for any reason could sue you if anything happened to them – for instance if they were injured by a falling tile, tripped over a tree root, or slipped on a slippery patch on the floor. Similarly if you employ anyone in connection with your holiday home, such as a cleaner, handyman or caretaker, you are legally obliged to have employer liability insurance.

If you are experiencing difficulty in finding the right kind of holiday home insurance, your best plan would be to consult a specialist broker. The broker can help you find an insurer that provides value for money, covers the essential elements, and rewards you for taking precautions to protect your holiday home.

©2012 Landlords Building Insurance. All Rights Reserved.

So how can you minimise these risks?

• Carry out regular checks on the wiring, sockets and electrical appliances. If there is the slightest cause for concern, get it seen to by a qualified electrician (trying to do it yourself could invalidate your holiday home insurance). If something starts smouldering while there is nobody there to take action, it is likely to become a full-blown fire that could destroy your holiday home.

• If you leave your holiday home unoccupied for long periods during the winter months, consider keeping your heating on (assuming it’s thermostatically controlled) to prevent freezing. (Some holiday home insurance policies insist on this.) It will mean bigger bills, but freezing could be disastrous. If the heating is oil-fired, look at it regularly to make sure there is no escape of oil.

• Check your TV aerial to make sure it isn’t about to fall down.

• Inspect your roof regularly. Even one tile missing for a lengthy period could cause severe water damage in your property.

• Some holiday home insurance companies insist that the water system is drained down during unoccupied periods. If you don’t want to do this, make sure you are clear about your insurer’s rules.

• You really need someone at hand who can keep a check on the property for you and get access in an emergency – either a paid agent, or a trusted neighbour.

Simple precautions prevent major disasters. Of course most of these things are unlikely to happen. But sometimes they do. And if they do, finding your holiday home insurance is invalid is the worst possible scenario.

©2012 Landlords Building Insurance. All Rights Reserved.

First and foremost, you must make sure that you have made it clear to your insurer that the policy is for a holiday home. Not all insurers will provide holiday home insurance. If you haven’t made it clear and something happens, you may find your policy is invalid. The premiums will be higher, but that is better than not being insured.

There are a number of basic steps you can take to secure your holiday home.

• It may seem obvious, but not everyone does it – fit strong window and door locks. Get the advice of the local police or Neighbourhood Watch if possible – they will probably advise extra security locks for downstairs windows. It’s a good idea to change the locks when you first take possession of the property, as you don’t know how many people have copies of the old keys.

• A burglar alarm is a good idea, but only fit one if there is a friendly neighbour who will check it, and switch it off if necessary. A number of things, such as power cuts, can trigger an alarm, and an incessantly sounding screech won’t endear you to your local community.

• Again, if there are friendly neighbours, ask them to make regular checks on the property. In particular, ask them to watch out for any accumulation of rubbish, and circulars stuffed in the letter box.

• Don’t give out your holiday home address – make sure all mail, for instance from utility companies, is sent to your home address.

• If you have garden equipment, leave it in the house when you’re away, not in the shed.

There’s only one thing worse than arriving at your holiday home and finding it has been broken into or damaged. That’s finding it has been broken into or damaged and your holiday home insurance has lapsed or is invalidated! Take these basic precautions and make sure you have peace of mind.

©2012 Landlords Building Insurance. All Rights Reserved.

Yet if there is one type of home that does need insuring, it’s a holiday home. Your holiday home is extra vulnerable – long periods of lying empty lead to higher risk of both burglary and weather damage. So what types of holiday home insurance do you need?

• Buildings insurance. This is the obvious one and in fact if you have a mortgage, your lender will almost certainly insist on adequate buildings insurance. Make sure you insure for the rebuild value, not just the market value. If you have a survey done when you are buying, the survey report will include a rebuild estimate for holiday home insurance purposes.

• Contents insurance. Very few insurers will let you include the contents of your holiday home in the contents policy on your main home. You need to take out a separate holiday home insurance contents policy. You must make it very clear to the insurer that it is for a holiday home that is not occupied all the time. Otherwise, if an incident occurs in your absence, like burglary or a fire, you may find you’re not covered. The premiums will almost certainly be higher than for your main residence, but you must pay them. (Holiday home insurance policies don’t usually cover personal valuables. If you take valuables to your main home, make sure they are insured under your main household policy.)

• Public liability insurance. Most household policies include legal liability insurance as standard – just make sure yours does. If it’s optional, take it. It is essential, especially if you are planning to let the property. Even if you’re not, there are all sorts of things that could happen. Friends using it could have an accident, or there could be a fire or leakage in your absence that damaged other people’s property.

• Employer’s liability insurance. If you are employing anyone in connection with your holiday home, such as a cleaner or a gardener, you must have this cover.

Don’t let your dream holiday home turn into a nightmare. If you can’t afford holiday home insurance, you should consider whether you can afford a holiday home at all.

©2012 Landlords Building Insurance. All Rights Reserved.