At Assetsure we are able to provide holiday property insurance (sometimes referred to as holiday home insurance), for UK and overseas holiday homes. The policy can help protect most types of holiday properties including; brick based holiday villas, holiday cottages, static caravans and timber chalets.
In addition, the insurance policy also covers home owners who wish to leave their holiday property empty or unoccupied during winter months, or because of tenancy void periods between letting.
Building Insurance Cover
The scheme has an automatic cover of up to one million pounds for the building sum insured. This simplifies the quote process because many second homeowners struggle to know what the rebuilding cost of their property is. All UK mortgage companies will need to see written proof of the buildings insurance to reflect the rebuilding cost. The main difference between a holiday home insurance policy and a traditional residential building and contents scheme is that the occupancy rates differ. Consequently, there are less insurance providers willing to provide cover for these types of properties, due to be inherent risks associated with a holiday property being left empty for long periods. These include water damage due to burst pipes, theft from burglary and damage from squatters.
Sometimes in the excitement of purchasing that dream holiday property you may not consider all the risks that may seriously damage or destroy the building. For example, damage from an aircraft collision, falling tree or fixtures and fittings (caused by an electrical surge), may not be the first thing to go through your mind during the purchase process. Yet, the cost of some of these events occurring can be devastating. Our basic buildings cover pays for the loss of, or damage to your holiday building caused by major perils occurring including; fire, theft, storm, flooding, explosion, lightning, earthquake, fire, smoke, riot or vandalism (plus many more). This basic list of perils can cover a wide range of scenarios that may lead to an insurance claim. However, just like any other property insurance policy, there are specific exclusions related to each major category of cover.
Policy exclusions help to dispel any potential disagreement, confusion or uncertainty between the policyholder and the insurance claims department. For fair recompense to be paid out, sometimes a claims assessor may be called out to evaluate the physical damage to a property. This helps to substantiate and expedite an insurance claim. So if you are concerned about a specific event occurring and want to understand whether your property will be protected or not, you must read the full policy wording. Insurance companies limit their exposure to risk by closely defining what they will and won’t pay out for. After all, there is no point in providing a scheme where the collective cost of certain types of claims (such as subsidence) creates a loss making scheme.
Above all, building insurance wording written in plain English goes a long way to reassure worried holiday home owners they are covered in wide range of unexpected scenarios. For example, check within the policy wording to see whether it would cover the costs of temporary rental accommodation, (should your property become uninhabitable due to a disaster). Similarly, would your insurance cover you for any loss of rental charges from holiday bookings, (should your property become so damaged it could be rented out)? Lastly, would your new policy cover the cost of demolishing a burned-out ruin and removal of debris before a rebuild could commence?
Contents Insurance Cover
As every experienced landlord knows, the cost on accidental breakages from holiday lettings can be a real nuisance. Much of the time the policy excess level means it is not really worth bothering to submit a claim for damaged or lost small value items. Despite this, the vast majority of insurance claims relate to damage to personal effects contents within the holiday property. Again check the policy wording to make sure you are covered (it is likely to cover things such as loss of keys, garden ornaments or a pedal cycle), to name but a few. Optional cover is usually available which tends to only be valid when the property is occupied.
Sometimes landlords confuse the cost related to wear and tear and maintenance (i.e. a boiler breakdown or blocked drain), which are not usually covered under this section of the policy. Most policies have single article limits for valuable items. Therefore, it may help a future insurance claim if you make an inventory, keep receipts and photograph all jewellery, electrical and other expensive items before you let tenants into your property.
Most decent holiday property insurance policies will have options for liability covers. This aims to indemnify you against sums for which you may become legally liable, should a tenant or third party become injured or harmed within your property. For example, if a tenant falls down stairs of your holiday property and sues you. Public liability insurance is a complex area with strict limits on the levels of indemnity, and clearly defined exclusions.