Holiday Home Insurance- When to make a claim.
If you have already purchased Holiday home insurance, then you will know that typically, it is more expensive than your normal residential policy. The reasons for this have already been discussed in other articles but basically, premiums are generally more expensive as there is a greater risk involved with holiday property.
One element that can help keep premiums in check is the no claims bonus. Often this any other risk related discounts can account for a potential saving of up to 40 % of the premium. So when and if something goes wrong at your property, a decision needs to be made as to whether it is viable to make a claim from the holiday home insurance policy.
In my own opinion, insurance is best saved for a fairly serious event, say there is a fire or a flood costing thousands of pounds and there is possibly loss of income as well, then that’s the time to make a claim. More likely incidents at the property will stem from minor damages caused by your tenants
How to deal with Holiday Home Damage.
The good news is, in my experience that most renters of holiday homes do their best to respect and look after your property, of course there will be occasions when damages occur and there are a number of ways that you can help guard against losing money when this happens. Remember, a claim under your insurance policy may actually end of costing you more in the long run than the amount of the damage.
Having a carefully laid out policy for dealing with damages is essential for the smooth running of your holiday home business as in reality most breakages are not covered by holiday home insurance and because of the policy excess, It’s probably not worth claiming for damage caused by a “peril” unless reasonably substantial damages are caused.
Here are our basic tips :
1 - Perhaps the most popular method for guarding against loss caused by tenant damage, is to ask for a security deposit; this should be pointed out on your booking form with a clear explanation as to how and when this money will be forfeited and at what point after the holiday it will be returned. I have always found that when both parties to an agreement are absolutely clear as the terms and conditions of a contract and what everyone’s expectations and duties are, then far fewer arguments occur at the end of the rental period.
2 - Use the services of a professional holiday home rental company, of course there will be a charge for services but not only will a letting agent assist you with finding renters, they should also help to sort out any problems that occur. There is a large amount to choose from and some of the online companies now specialise in higher end rentals and offer very professional services, including sorting out problems and the servicing and upkeep of your property.
3 - If you manage your own holiday property and don’t wish to take a deposit then preparing a detailed fact sheet on your breakages policy will greatly assist. This can be done in a friendly manner, pointing that there is no insurance for broken items and that you expect all breakages to be reported at the end of the rental period. You can give the option of allowing the renter to either replace or pay for the damaged item
It’s worth bearing in mind that damage’s will occur and you should expect normal wear and tear to occur as it would in an owner occupied property, holiday home renters expect greater standards in comfort than ever before and the quality of your fixtures and fittings should be reflected in your rental price, the truth of the matter is, expect damages to occur.
At Assetsure, we can help you with Holiday Home Insurance, which covers a wide range of perils fairly similar to that provided by a home insurance policy, if you require any further information about this type of insurance or have any other insurance related questions, please feel free to contact our office.