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.
Archive for the ‘Holiday Property Insurance’ Category
Getting the holiday property insurance you need
Are you fortunate enough to own a holiday home? Is it a bolt-hole used only by you to escape the pressures of everyday life or is it somewhere you’re happy to see used by family and friends for their holidays, too? Does it lie idle and unoccupied for much of the year, or is it somewhere that also generates a regular income when let to paying guests? Whatever enjoyment you’re able to get from a second home, you are likely to give serious consideration to the holiday property insurance that protects both its fabric and its contents.
On the face of it, going about arranging that insurance appears simple enough. If you are an existing property owner, with your own home to look after, then you probably know a thing or two about buildings and contents insurance. Holiday property insurance, however, might require something a little different and call for some specialist advice, in order to get just the cover you need – few people want to pay for cover they do not need, for example, whilst the careful property owner tries to ensure that all the essentials are covered.
Fortunately, there are a number of specialist, holiday property insurance providers whose web-based quotation services might help you find just the cover you require. Some of the key points worth bearing in mind are:
- Whatever the location of your property, you are likely to want a policy that is readily understood, with critical “small print” explained in advance. If your holiday home is overseas, therefore, it might well be worth insuring it through a UK-based insurer, with a policy written in English and help-lines manned by native English-speakers, in the event that you need to make a claim;
- If the property is likely to remain unoccupied for substantial periods of time, your insurer needs to know that fact and take it into account when arranging the cover;
- If you employ others to care-take your holiday home or help to maintain it, you might wish to consider including employer’s liability cover in your holiday property insurance – indeed, if such staff are retained to look after a property in the UK, the law might require that you have such cover.
Holiday home cover to suit you
There are many reasons for buying a holiday home: it might be in a part of the country where you enjoy taking occasional breaks away from your principal residence; it might be the setting for holidays for you, your friends or family; it might be bought for you to move into when you retire; or it might be an investment from which you intend to earn a regular income from rent. However you look forward to enjoying the property, though, you are likely to want to protect both the building and its contents with suitable holiday home cover.
The building
The fabric of the property is exposed to all of the perils of any other building: namely, fire, flooding, storm damage, vandalism and impacts from such things as falling trees, telegraph poles, aerials and the like. The difference with holiday home cover, however, is that it is probably going to need to extend such cover during significant periods of time when the property lies empty and unoccupied.
These are times when many insurers grow distinctly nervous about covering the property and most reduce the level of cover after it has been empty for between 30 and 90 days (depending on the insurer). Specialist holiday home insurance providers, however, are likely to be more accustomed to customers needs to maintain cover at an acceptable level even when the property is unoccupied, but is very important that you always check what an insurers’ stance on unoccupied properties are rather than just making an assumption..
The contents
The contents of your holiday home might not be as extensive or as valuable as the contents of your principal residence, but they if even just a few items become damaged or are stolen, then they are likely to be expensive to replace. Once again, specialists in the provision of holiday home insurance are likely to be in a position to ensure that valuable contents remain protected the year round, even at those times when the property is unoccupied.
Insurance to suit you
Because your home away from home is likely to have a number of potential uses and occupation patterns, standard “one size fits all” insurance solutions are unlikely to offer exactly the cover that you need. You might then be exposed to the risk of under-insurance (if certain elements remain unprotected) or over-insurance (if you end up paying for cover that you really do not need). Specialist holiday home cover is likely to offer the kind of tailored solution appropriate for your own holiday retreat.
Safety in holiday home insurance
Whether it’s in the UK or somewhere in sunnier climes, your holiday home is likely to represent a sizeable investment and one that you want to protect as securely as possible. One of the inevitable problems with holiday home insurance – as with any form of insurance – however, is that you’re unlikely to discover how suitable, safe and reliable the cover is unless or until you need to make a claim.
To help you overcome such uncertainty and gain reassurance in advance of any claim, therefore, it might often repay to purchase holiday home insurance through an experienced specialist provider of this particular form of insurance. One of the likely reasons for consulting such a specialist – typically through a website enquiry – is that insurance for a holiday home differs in a number of respects from other varieties of home insurance:
- Unoccupied – a holiday home is likely to be unoccupied more often and for longer periods of time than your principal residence. The higher risks attracted by empty buildings, moreover, lead many insurers to reduce the level of cover after a given interval (typically more than 30 to 90 days, depending on the insurer). An insurance provider specialising in cover for holiday homes is typically better placed to identify those insurers that continue to provide the cover most appropriate to the occupation patterns of your holiday home;
- Employers’ liability – whether your holiday home is in the UK or abroad, you might also employ staff to help you look after it. If the property is in the UK, you might be under a legal obligation to hold employers’ liability insurance to cover those employees against claims arising from injuries or damage to their property whilst working for you. Other countries, of course, might have different legislation with respect to employers’ liabilities, but the prudent property owner is likely to make certain of any such obligations and to ensure that adequate insurance is in place to provide indemnity against such claims;
- Your needs – holiday homes, of course, come in all shapes and sizes, with a host of possible facilities and amenities. Specialist holiday home cover is likely to offer greater flexibility in arranging cover for only those features that you genuinely need to be protected – not all properties, for example, have a swimming pool, but if there is one, you are likely to want it to remain fully covered by the insurance policy;
- Loss of income – many holiday homes are owned as an investment from which it is intended to derive a rental income. Even the most carefully run businesses such as this, however, suffer setbacks and one of the useful features of a well chosen holiday home insurance policy might be the ability to claim for loss of rental income (such as where the property has been damaged by an insured risk and cannot be let out while it is being repaired, for example). Not all holiday homes insurance policies will offer this cover, so do check.
Holiday home insurance for Europe
Prudent owners of holiday accommodation in Europe are likely to give serious consideration to protecting their investment with adequate and reliable holiday home insurance for Europe. Their home in the UK, after all, is almost certainly going to be covered by buildings and contents insurance, so similar protection of their second home away from home is also likely to be given a high priority.
When purchasing cover for property abroad, however, there are some important additional considerations which might not immediately spring to mind when arranging the insurance:
- Mind your language – it is probably a statement of the obvious, but in foreign parts, they tend to speak a foreign language. This might be part of the joy of owning a holiday home overseas, but it certainly has the capacity for making some negotiations rather tricky. If you need to prepare a claim on your holiday home insurance for Europe, for example, the language barrier might prove more than an inconvenience but actually prevent you from winning the compensation you deserve (and have paid for through your premiums);
- Anyone at home? – practically by definition, holiday homes are rarely occupied the whole year round and are likely to stand vacant for appreciable periods of time. Empty property, however, is vulnerable to a considerably wider range of risks than an occupied one and some insurers therefore impose restrictions on the cover that remains in place beyond a certain period of its vacancy. Choosing your insurer carefully – and being able to read the detailed terms and conditions of the cover in English – might help you gain a better understanding of the status of your holiday property cover whenever it is unoccupied;
- Location, location, location – different insurers, even those that are UK-based, seem to have different definitions of “Europe”. Some include only the major European nations, some include any that are members of the European Union, whilst others cast their net still further and include other popular holiday destinations, such as Morocco, Tunisia and Turkey;
- Solutions – fortunately, many of these pitfalls that are capable of catching out the unwary property owner might be avoided by consulting a specialist, UK-based insurance adviser. Many have websites that allow interested customers readily to search for the most suitable – and affordable – holiday home insurance in Europe.
Cheap French holiday home insurance online
If you have a holiday home in France and need insurance for it even if you speak fluent French, you may be better looking for cheap French holiday home insurance online from the UK. If you buy insurance abroad, there is always the possibility of misinterpreting the insurance policy and taking cover that is not the most suitable type for you, and which does not provide for your needs.
The two types of home insurance
Buildings insurance is generally required when taking out a mortgage for the property while contents insurance is a matter of personal choice. If you want total peace of mind and want contents cover too then you may be able to get a policy that combines the two and this may work out cheaper than taking separate polices with different providers.
Contents insurance typically protects any items in your home that are movable. These typically include your personal belongings, furniture and any household goods.
If any of these were to become damaged, stolen or destroyed due to one of the events covered in the policy it typically pays so much towards replacing them. Of course you are expected to pay a certain amount of excess towards the policy which is the amount that you pay if a claim is made before the insurance provider takes over the rest of the claim.
There will also be exclusions – some providers for example will not cover damage by tenants who have let the property. So do check the small print.
Buildings insurance typically covers the shell of your property and anything that you leave behind if you were to move. This may include bathroom and kitchens along with fitted wardrobes. It typically – but not always – covers garden paths, walls, outer buildings, patio areas, swimming pool and garage.
A policy for your home typically protects against fire and theft, vandalism, storm and flood damage, earthquake damage and damage as the result of lightning. However, you do have to check the terms of the cover to ensure you know what you are and are not protected against.
When looking for cheap French holiday home insurance there are many ways that you may be able to help keep down the cost of the insurance.
Security – Security of your home is generally taken into account by insurance providers. For example if you install additional security measures such as an alarm system, smoke alarm, security lighting and erect fencing and a gate around your home it may be seen as less of a risk to thieves.
New for old or depreciation – When insuring the contents of your home insurance providers generally offer a policy that replaces your items and belongings as new for old or they may consider depreciation. If items are replaced as brand new despite their condition, you generally have to pay higher premiums.
How much insurance – When looking for cheap French holiday home insurance you have to make an inventory of the contents of your home. You then insure for this amount, how much cover you need reflects on the insurance premiums. The more you choose to cover the dearer the insurance premiums. It is important to make sure you have adequate coverage but you do not want to over-insure so that you are in effect paying out for cover that is not relevant.
Your holiday property insurance
There are two parts to holiday property insurance. These are buildings cover and contents cover. The former obviously protects the structure of your property. Contents cover is a matter of choice but it may be a very valuable part of the insurance. If you lost everything in your holiday home, it has to be replaced by you if you do not have cover.
With contents insurance it typically pays out up to an agreed sum to replace belongings, furniture and any items that are classed as removable from the property.
What events are protected with holiday home insurance?
You may find that holiday property insurance typically – but not always – protects against the following:
- breakage of any glass that is fixed which may include ceramic hobs and sanitary fittings;
- damage or destruction due to fire or explosion;
- storm damage which may include lightning damage;
- flood or water leak damage;
- earthquake damage;
- an impact of aircraft or vehicle;
- acts of vandalism;
- damage from water tanks or pipes.
Of course, you do have to check the policy you are considering to find out the extent of your cover and limitations and exclusions. These may vary not only because the providers are different, but also where you have your holiday home.
Protection for renting out your holiday home
You may find that accidental damage is not covered in the holiday property insurance policy but may be added on for a little extra to cover any accidental damage by you and members of your family (but typically not tenants). This may be worth taking especially if you do plan to rent out your holiday home.
When considering a policy you may want to check to find out if the insurance provider pays out new for old or if they consider wear and tear.
Pubic liability insurance protects you in the event that a holidaymaker suffers an injury such as a trip or fall whilst staying in your holiday home and then subsequently makes a claim for damages against you. In the event that someone were injured and a claim made against you, public liability insurance typically pays up to a pre-defined amount towards your legal costs.
You may also want to include income rental loss in your holiday property insurance. This typically pays towards losses that occur if holidaymakers have pre-booked and they cannot stay in the property due to such as repairs taking place as a result of damage caused by an insured risk – not for maintenance works. With some policies you may also get financial help towards a stay in alternative accommodation for your family as the result of damage to your holiday home.
Holiday home insurance for your peace of mind
If you become the proud owner of a holiday home, you will generally want to take out buildings insurance in order to protect your investment. Buildings insurance typically covers the shell of your property and any non-removable fittings within it. If you want total peace of mind for your home then you may also want to consider contents holiday home insurance, which covers items within your holiday home.
Buildings cover
A typical buildings insurance policy covers the outer shell of the property and may also cover any paths, walls, patio, outer buildings and swimming pool too, but not always, so check the policy wording before you buy. Fittings and fixtures in the holiday home such as kitchens and bathrooms are generally also included in the policy.
Protection for your contents
A typical holiday contents insurance policy may cover any items in the property that are removable. These could include any furniture, goods inside the property and possessions. Accidental damage is usually not included as standard in the policy and there may be limits and exclusions for items that are above a set value.
What the policy typically covers
Both of the above forms of home insurance typically cover a wide range of circumstances such as fire, theft, damage by vandalism, storm and flood, earthquakes, explosions and civil disturbances. However, you do have to check the small print to be sure what is and is not included in a specific policy.
Cover for holiday home letting
If you rent out your holiday home when you are not using it, public liability cover gives you peace of mind. If anyone staying in your holiday home were to become injured, a claim may be made against you for damages. A public liability policy typically pays up to so much towards legal costs associated with a claim.
Loss of pre-booked rental income in your holiday home insurance also brings financial peace of mind. If your holiday home were to become damaged to the extent you were unable to rent it out, you may lose a great deal of money. Pre-booked rental loss typically covers your rental loss and may include alternative accommodation for you and your family if the property is damaged whilst you are staying in it. However, not all providers offer this option, so do check the policy wording.
The benefits of foreign property insurance
Foreign property insurance covers your holiday home abroad, giving you peace of mind that your property is protected. If you let out your holiday home when you are not using it a policy may typically include cover for lets, including public liability. Here are some of the many benefits typically found in insurance for your property overseas.
Buildings insurance
A typical foreign property insurance policy may cover the structure of your holiday home along with any fittings and fixtures on the interior of your home that are not removable. These could include a fitted kitchen and bathroom.
The exterior of your home and such as garages, pathways, walls, your swimming pool and patio may also be covered.
A policy may typically cover damage caused by things such as fire, storm, theft, vandalism, flood, earthquake and lightning. However, when taking out insurance it is essential that you check the summary of your policy and the small print to determine exactly what is and is not protected within the cover.
Contents insurance
Contents insurance typically covers any items in your holiday home and these are replaced if they become damaged, stolen or destroyed. Any items that are of particular expense such as jewellery may be excluded so again check with your provider.
Accidental damage caused by you or family members (but not tenants) is generally not included in your policy but many providers allow you to add it on for extra cost. Your contents are typically protected against the same hazards as in your buildings insurance but do check, as policy features and benefits can vary among providers.
Extra benefits to cover
When taking out insurance you may also get extra benefits depending on your provider or you may be able to add these into your cover.
Public liability is needed if you choose to let your property to other holidaymakers. Typical liability policies protect you against the possibility that a holidaymaker may become injured or even die, whilst on your property. For example if they trip or fall on your property, they may take you to court to seek compensation. In this case, the policy typically pays out up to a pre-agreed amount towards your legal costs.
Foreign property insurance may also sometimes include a loss of rental income in the event that holidaymakers who had pre-booked were unable to stay in your property if your holiday home were damaged.
Benefits you may find in overseas property insurance
If you are one of the lucky ones who owns property overseas, either as your own holiday home or with the intention of letting it out then you know how essential it is to find the correct overseas property insurance.
When it comes to taking out cover, you have two options – You may choose to take out policy in the area where your holiday home is situated or you may choose to take out cover in the UK. If you take out your policy overseas, there may be language problems, which might lead to you taking inadequate cover. If you choose to take your insurance online in the UK, there is more chance of you getting the correct policy for your needs.
There are numerous benefits to taking out buildings and contents insurance for your holiday home. Whether you let your overseas property or just use it as your own holiday home may influence what you need in your policy.
An insurance policy for your overseas property typically takes into account the fact that the property may be empty for some time out of the year. An unoccupied property may also be a target for thieves so you may wish to ensure that your chosen provider does not discriminate against this, providing you take adequate security measures.
If you are planning to rent out your holiday home when you are not using it then you will typically need public liability insurance in your policy. This part of your overseas property insurance typically protects you against the financial ramification of a holidaymaker suffering an injury on your property and making a claim against you for compensation. The policy typically pays out towards your legal costs and damages.
You will also want to find out if your overseas property insurance policy includes a loss of pre-booked rental income if your property becomes damaged and you are unable to let it to holiday makers.
Holiday home insurance UK
Negotiating to buy a holiday home is just one part of the challenge – once a deal is in place there are all the other common hurdles to overcome and sort through. One of them will be insurance for the property and the fact is this may be trickier than the buyer first imagined. Thankfully a holiday home insurance UK provider can make life much easier.
Getting your cover from a specialist company means you can arrange both buildings and contents insurance at the same time. Ensuring a policy is watertight is important because the property could well be left unoccupied for long periods of time. This may make it attractive to thieves, for example, so cover can be vital particularly if you are intending to leave it empty for periods of the year out of season.
When arranging holiday home insurance, UK providers can also supply you with business interruption protection if you are thinking of renting out the property. This will supply a partial or full replacement of any lost rent income incurred because there has been a problem such as a fire or flood.
Likewise a policy can even include legal liability for any staff and public liability insurance for tenants. All of these things are different to what you may have on your British based home insurance policy.
There are also other things to consider as your property may include something like a swimming pool, which is not a typical cover option on the domestic insurance deal. At the same time, your home may not include such extras and you will not need to pay for protection for something like a pool if you do not have one. Also it can pay to carefully assess what is going to be kept in the property while it is empty to provide an accurate run-down of its contents for the insurer.
It’s also important to get a copy of the policy in English. Even though you may have a reasonable grasp of the language of the country in which you are buying, unless you are fully fluent there is the chance you may not fully understand what the cover entails.
Firms can supply policies in English and even employ English-speaking or English staff to deal with claims meaning it can be more simple to sort out a problem if something does go wrong.
So although you may be offered insurance by a foreign provider or intermediary, it is possible to get cover from holiday home insurance UK providers. In this way it is possible to sort out reasonably priced protection which is also simpler to understand. As such you can have peace of mind that everything is safe – even though your investment might be thousands of miles from home.