According to recent statistics, almost 10% of British adults now own property that they don’t live in full-time.
Whether it’s an inherited country house, a city flat from their younger days, or a villa on the Italian Riviera, one question all second home owners face is how to best insure their property.
The offer on the insurance market is broad, and comes under a variety of names, from vacant property insurance to second home insurance. One of the most frequent product types, however, is holiday home insurance.
Here’s the run-down on what exactly holiday home insurance refers to, what it covers, and if it’s right for you.
What is holiday home insurance?
Standard home insurance policies are often unsuitable for properties that you only occupy sporadically.
Most standard policies reduce their cover after 30 days of vacancy. Certain risks are not covered at all beyond this point. For example, storm damage, burst pipes, or mould are unlikely to be covered – even though the risks of them occurring and going unnoticed for longer periods of time are higher.
Holiday home insurance, however, covers exactly these risks.
Unlike vacant property insurance plans, which have similar coverage, holiday home insurance is tailored to properties that are occupied for part of the year.
What types of holiday home insurance are there?
There are two general types of holiday home insurance.
The first covers you if you occupy the property yourself for part of the year. Are you heading down to the Côte d’Azur every summer to stay at your villa? Then this kind of holiday home insurance is for you.
The second type of holiday home insurance is adapted to the scenario in which you rent your property out as a holiday home for part of the year. Do you let your cottage in the forest of dean to hikers during summer and autumn? Then opt for this version of holiday home insurance.
What does holiday home insurance cover?
All types of holiday home insurance generally include building and contents insurance. The former covers you in case the building itself is damaged or destroyed, whether by floods, fires, or a storm. The latter protects the items in your property, from valuables to furniture.
However, many holiday home insurance policies have provisions requiring you to do regular check-ups and maintenance work. For example, you might have to document that your locks and windows are sufficiently secure to deter burglars, or provide proof of regular plumbing and gas inspections.
Can you rent out your property with holiday home insurance?
As mentioned above, one type of holiday home insurance is specifically adapted to you renting your property out to seasonal lodgers.
These policies typically unify several kinds of insurance cover into one convenient package. For example, it may include landlord and public liability insurance (if someone is injured on your property) and loss of rent insurance (if your property is damaged and nobody can stay there for a while).
All in all, holiday home insurance is typically a versatile product that can be adapted to a variety of situations. Whether you sporadically occupy the property yourself, or rent it out seasonally, with a bit of research you’ll be able to find a provider with a policy that meets your individual needs.
The 2021 Guide to Holiday Home Insurance