Holiday homes are something to cherish, and only available to a fortunate few. Like any property they need to be taken care of, and at times can prove a drain on the finances when something goes wrong and investment is needed.
If you're a homeowner it's likely that you'll already be familiar with home insurance. Insurance specifically for holiday homes is slightly different.
Holiday Home Insurance and Unoccupied Home Insurance
Standard home insurance policies don't cover houses when left for longer than a predefined period (normally 30 days), this is because the longer a house is left unoccupied, the greater the risk of an incident happening, whether it be burglary, or some kind of fault within the house.
Holiday home insurance policies generally have the same 30 day clause, meaning that this type of policy is really only suitable if you're going to be renting out your property regularly.
If you're lucky enough to not have to sub-let your holiday home- and it stays unoccupied for long periods of time, you'll need to look for a policy specifically for unoccupied properties.
As with standard home insurance, 'contents' and 'building' cover are the two available types of policies, and you should look to buy both if they apply to your situation.
Contents & Public Liability Insurance For Holiday Homes
Contents insurance for holiday homes is unlikely to cover any jewellery or expensive electrical equipment, but even the cost of replacing everyday items soon mounts up, particularly if your property has been devastated.
If you're renting your home out, you will need to look for a policy that includes public liability insurance (most do, but check). This will insure you, should a tenant suffer a misfortune and try to press legal action against you. This eventuality will also be covered if any tradesmen or employees working on your premises also try to go down the same route.
Some of the better policies available, offer extras such as 'emergency travel' should something happen and you need to get there quickly, and the ability to claim for missed rent if you can't let your property due to an incident.
As it suggests, Buildings Insurance covers the structure of your home. It will also cover fixtures and fittings such as windows, doors, fitted kitchens and bathroom suites.
Lots of people make the mistake of insuring their house for the market value, rather than the cost of rebuilding the house (cost of materials, labour etc), which is often ends up being more expensive.
If you have just bought your home, you should find the rebuild cost on the mortgage valuation. Otherwise there are numerous online calculators you can use. It’s important to get this valuation as accurate as possible – too high and you’ll be paying unnecessarily more, - too low and you won’t be fully covered should the worst happen.© Glanum | Dreamstime.com