Holiday Home Insurance and Second Home Insurance
Holiday Home Insurance is the specialist replacement of home contents insurance as purchased on the main family home which is occupied throughout the year. The insurance policies offer a number of extra pieces of cover which reflect the issues and differences which occur in a holiday home.
So Holiday Home Insurance provides extra cover and one of the most important is public liability. This covers any expenses which may occur as injury or damage to belongings of a guest while staying in the property. Here are a few examples.
A paying guest is using the property trips on some loose carpet and falls. The owner is then liable for any compensation due the victim as the property has not been correctly maintained. The victim could sue to cover lost earnings while they recover from an injury or be awarded damages if they suffer a long term disability or injury. This is extremely rare but the financial cost of such a claim can run into hundreds of thousands of pounds. A typical Holiday Home Insurance policy will provide cover for a few million pounds of liability insurance.
Guests will often bring personal possessions with them on holiday, such as expensive smartphones, laptops or jewellery. If there was a break-in during a stay and some of the guest's valuables were taken, the Holiday Home Insurance policy would provide cover for replacing their personal items. Though highly unlikely, it is also possible that a guest's personal possessions could be damaged at the property through no fault of their own, for example where a guest buys a lot of food for their stay and the fridge/freezer fails, resulting in the food having to be thrown out.
Many self-catering properties offer extra facilities to attract more bookings. These can include a swimming pool, a hot tub, or extra equipment such as cycles and surfboards. It is important to check the liability element of the Holiday Home Insurance policy to ensure you are not liable for any compensation as a result of an accident or damage caused by the use of the equipment.
There are many more examples of situations which can create claims and problems for owners, so it is important to ensure that the Holiday Home Insurance covers all of these eventualities and does not expose the owner to serious and costly claims.
Much of the cover provided by holiday home insurance is the same as that you will find in a normal home contents policy; such as replacing items which are damaged or stolen. But even cover in the event of a burglary is different for holiday homes because of the usage patterns. Whether the holiday home is being used by the owner exclusively, or it is let out for guests on a commercial basis, the time when the property is occupied throughout the year will vary greatly and there is the significant likelihood that the property will be unoccupied for longer periods of time.
This is typically the case in the winter when there is less demand from paying holidaymakers and the property stands empty for longer periods. A standard home contents policy typically is only valid if the property is not left unoccupied for more than 28 days. So holiday home insurance needs to factor in the extra risks that can occur when a property is left unoccupied in such situations. These might include:
• The increased risk of burglary
• The potential for squatters to occupy the property
• Frozen pipes if not used over the winter
For example a burst pipe in the winter could potentially cause more damage if the leak is not detected for a few hours or even longer, whereas in an occupied house, the water could be switched off straight away and minimise the damage.
Burglary is a pretty rare occurance (touch wood) at holiday homes mainly down to their location in more remote areas, rather than in cities and towns. Holiday homes on a park, such as lodges will also have the benefit of on-site security.
Asides from the risk of burglary, an unoccupied property could be at risk of the admittedly small chance of suffering extra damage in other instances. For example if some of the roof tiles came off in a winter storm, there is the potential for rain to get in and cause internal damage, or if a bird became trapped in the chimney and died.
So Holiday Home Insurance provides extra cover and one of the most important is public liability. This covers any expenses which may occur as injury or damage to belongings of a guest while staying in the property. Here are a few examples.
A paying guest is using the property trips on some loose carpet and falls. The owner is then liable for any compensation due the victim as the property has not been correctly maintained. The victim could sue to cover lost earnings while they recover from an injury or be awarded damages if they suffer a long term disability or injury. This is extremely rare but the financial cost of such a claim can run into hundreds of thousands of pounds. A typical Holiday Home Insurance policy will provide cover for a few million pounds of liability insurance.
Guests will often bring personal possessions with them on holiday, such as expensive smartphones, laptops or jewellery. If there was a break-in during a stay and some of the guest's valuables were taken, the Holiday Home Insurance policy would provide cover for replacing their personal items. Though highly unlikely, it is also possible that a guest's personal possessions could be damaged at the property through no fault of their own, for example where a guest buys a lot of food for their stay and the fridge/freezer fails, resulting in the food having to be thrown out.
Many self-catering properties offer extra facilities to attract more bookings. These can include a swimming pool, a hot tub, or extra equipment such as cycles and surfboards. It is important to check the liability element of the Holiday Home Insurance policy to ensure you are not liable for any compensation as a result of an accident or damage caused by the use of the equipment.
There are many more examples of situations which can create claims and problems for owners, so it is important to ensure that the Holiday Home Insurance covers all of these eventualities and does not expose the owner to serious and costly claims.
Much of the cover provided by holiday home insurance is the same as that you will find in a normal home contents policy; such as replacing items which are damaged or stolen. But even cover in the event of a burglary is different for holiday homes because of the usage patterns. Whether the holiday home is being used by the owner exclusively, or it is let out for guests on a commercial basis, the time when the property is occupied throughout the year will vary greatly and there is the significant likelihood that the property will be unoccupied for longer periods of time.
This is typically the case in the winter when there is less demand from paying holidaymakers and the property stands empty for longer periods. A standard home contents policy typically is only valid if the property is not left unoccupied for more than 28 days. So holiday home insurance needs to factor in the extra risks that can occur when a property is left unoccupied in such situations. These might include:
• The increased risk of burglary
• The potential for squatters to occupy the property
• Frozen pipes if not used over the winter
For example a burst pipe in the winter could potentially cause more damage if the leak is not detected for a few hours or even longer, whereas in an occupied house, the water could be switched off straight away and minimise the damage.
Burglary is a pretty rare occurance (touch wood) at holiday homes mainly down to their location in more remote areas, rather than in cities and towns. Holiday homes on a park, such as lodges will also have the benefit of on-site security.
Asides from the risk of burglary, an unoccupied property could be at risk of the admittedly small chance of suffering extra damage in other instances. For example if some of the roof tiles came off in a winter storm, there is the potential for rain to get in and cause internal damage, or if a bird became trapped in the chimney and died.
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