What to Consider When Choosing Holiday Home Insurance

If you currently own a second home that you rent out to guests, it is imperative that you have the right insurance in place.

Many holiday home owners incorrectly assume that standard home insurance policies are sufficient to cover their needs. This is not the case; holiday homes require specialist insurance policies that provide adequate cover for their unique circumstances.
It's important to remember to get permission from your mortgage lender and your insurer before you let your property for short-term holidays. This is very important as your insurance could be invalidated if you fail to do this.

Here are three things to bear in mind when looking for the right policy for your property:



1) Building and Contents Cover
Your holiday home is most likely a valuable asset and it is important to have peace of mind that it is properly protected. Make sure you are covered against all insurable risks for the full reinstatement cost. This includes all fixtures and fittings; garages and outbuildings; patios and driveways; fences and swimming pools.
Make sure you value your property correctly when you insure it. In the event of a claim, the reinstatement cost may not be the same as the market value of the property or the price that you originally paid for it.

It is a safe assumption that your holiday home will be let fully furnished. A policy that includes full accidental damage cover on a new for old basis will provide you with the peace of mind that your property is protected.
The sum insured should be enough to cover the replacement of all contents. It is always advisable for owners to carry out a complete inventory of contents together with photographic evidence in case a claim arises.

2) Liability Cover

It is essential that you have Property Owners Liability insurance in place, in fact most letting agents won't represent you without it.

When renting out your holiday home you will be liable for injuries that your guests incur and any damage to their possessions as a result of neglect. Ensure you have the right level of property owners liability cover in place in the event of an accident.

Another consideration is that most second home owners find that one way or another they will need to employ staff to tend to their property. It may be that they require gardeners, maids or pool cleaners on an occasional or full-time basis.

With this in mind, it is therefore important that your insurance policy does cover death or injury to any individuals in your employment.




3) Loss of Rental Income Cover

Many second home owners rely on rental income to cover the cost of their mortgage. In the event of a disaster rendering your home uninhabitable, it is important to have loss of rental income cover in place to ensure that you continue to receive an income.
Do not underestimate the period of time you may need to be covered for. If, for example, your home was destroyed by fire or flooding; it may take up-to two years to rebuild it and even longer to return it to a furnished, inhabitable state.
Even if you are covered for loss of rental income, it is important to check that you are still fully covered even if your property is vacant for long periods.
Finally, ensure you have a good understanding of your policy cover and in particular you understand your obligations regarding any warranties. Failure to adhere to these conditions can result in your policy being invalidated. You may, for example, be required to inspect your property every 14 days whilst empty.




This is by no means a comprehensive guide to the pitfalls of having the wrong policy; however it should serve to illustrate the importance of choosing your cover carefully.

Having the right cover in place gives you the peace of mind to rent out your property knowing that you are fully covered, not matter what the circumstances.

If you would like to get further advice on insuring your holiday home, then I would recommend speaking to Specialist Insurance Agency. They have been providing expert advice and cover for holiday homes since 1994 and offer a wide range of competitively priced cover.

You can visit their website at: http://www.specialisthomecover.com or you can give them a call on 02380730207.