Holiday Home Insurance and Second Home Insurance

Protecting your holiday home either overseas or in the UK is a vital way to protect your investment. Choosing a UK insurance product means that you will have peace of mind, when it comes to having to make a claim.Selecting the "get a quote" button will direct you to Intasure.

A guide to UK holiday home insurance

In a major market survey and analysis conducted by the London School of Economics (LSE) for the holiday rental site HomeAway, there are an estimated 60,000 holiday homes in the UK.

According to the study, gross rental incomes from all holiday lets approaches £1 billion, with owners spending approximately half of that sum on expenses related to running and maintaining their properties. In other words, some £500,000 is spent each year in expenses such as tax on rental income, mortgage repayments, repairs and maintenance and property insurance.

UK holiday home insurance

Why is insurance on UK holiday homes singled out for particular attention

  • protection of the building, its contents and other risks is just as important with a holiday home as it is any other property; but
  • UK holiday home insurance is a specialist type of insurance, unlike the standard home insurance which might safeguard the owner occupier’s property or the landlord insurance likely to protect a landlord’s investment in buy to let property.

Indeed, it is a sufficiently distinct and specialist type of cover that you might want to consult a provider with the relevant expertise and experience in arranging UK holiday home insurance when you arrange it.

What makes it different?

What distinguishes UK holiday home insurance is the use to which the property is put – and, therefore, the risks it faces.

An owner occupied home is the principal residence of the owner and his or family and occupied on a more or less continuous basis throughout the year. A buy to let property, on the other hand, represents a business asset in which the property is let to tenants, typically on an assured shorthold tenancy, which is likely to run for a year or more.

A holiday let, though, is let to tenants for much shorter periods – the LSE study suggests that the average is just one week at a time – and may still be available to its owner as a second or holiday home when it is not being let to tenants. For other periods of the year, the holiday home might stand empty and unoccupied – when the risks of damage caused by vandals and other intruders or unattended repair and maintenance problems may lead to particular loss or damage.

Therefore, the holiday home might be said to fall between the two stools of standard home insurance for the owner occupier and the landlord insurance arranged by the owner of typical buy to let property.

It is a distinction which makes purpose designed holiday home insurance the protection needed for any kind of second home, but especially one that is let out to paying guests for part of the year.

It is important that you arrange this type of insurance, since insurers need to know the use to which a property is to be put in order to assess the risks and, so, determine the conditions of cover and the price of premiums. If you arrange the wrong kind of insurance – regular home insurance or landlord’s insurance, for instance – but then need to claim under circumstances in which your property was used for holiday lets, your insurer is entitled to avoid or reject your claim.

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