Is there a difference between holiday home insurance and second home insurance?
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I've seen adverts for both, and am curious why?
WeeMoney
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
a holiday home could be a business venture - like a buy to let property but only let on "holiday" terms ie a fortnight at a time.
second home insurance will usually infer that you own a second home that you spend time in but its only occupied by you and your family (which poses a lower risk of a claim when compared to a let property).
it's a reason why insurers will always ask who will occupy and how often the property is left vacant as this will impact on the cover available.
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second home insurance will usually infer that you own a second home that you spend time in but its only occupied by you and your family (which poses a lower risk of a claim when compared to a let property).
it's a reason why insurers will always ask who will occupy and how often the property is left vacant as this will impact on the cover available.
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Holiday home insurance will also normally include some form of loss of rent cover, and indeed second home insurance, regarded as a second personal residence, might not cover you at all if you let it out. The wording, and the exclusions, of the insurance policy must be clearly understood!
It is important to ensure that the cover is correct for the intended use, since if the property is used for a purpose which is not covered, then you could find that the property is uninsured - and a claim could be rejected. For the same reason, if you let out your own residence, you must not only confirm with the lender that this is ok - and obtain written confirmation - you must also confirm that this is acceptable with the insurer, or obtain other cover.
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It is important to ensure that the cover is correct for the intended use, since if the property is used for a purpose which is not covered, then you could find that the property is uninsured - and a claim could be rejected. For the same reason, if you let out your own residence, you must not only confirm with the lender that this is ok - and obtain written confirmation - you must also confirm that this is acceptable with the insurer, or obtain other cover.
