Trip Dwelling Insurance: Every thing You Want To Know – Night Normal
Vacation home is a place where you can escape to forget all your worries. Or at least it should be.
Problems can arise, however, and this is where vacation home insurance comes into play. It can calm you down, regardless of whether there is a problem with the property itself or the visitors are haunted by bad luck.
Here's what you need to know and what to look for while getting this type of coverage.
What is holiday home insurance?
Vacation home insurance is designed to cover the risks that may arise from owning a second property in the UK or abroad.
For example, it offers financial protection against potentially wallet-damaging events such as flooding, break-ins or injuries to guests on the property and you as the owner, who will be held liable.
It is possible to get vacation home insurance for a range of properties and buildings, including houses, apartments, chalets and caravans.
What does the holiday home insurance cover?
Holiday home insurance has many parallels to traditional home insurance – but there are also important differences.
For example, holiday home insurance usually covers real estate from the usual risk of damage from fire, flood and storm, as well as damage from theft. But it also offers protection if buildings remain uninhabited for a longer period of time, for example 30 days or longer.
The usual household contents insurance usually does not cover this or severely restricts the insurance coverage in such situations.
When it comes to getting vacation home insurance, it's important to look for the best combination of price and protection. You can do this online, and as we'll explain, the coverage comes at different levels.
Can't I just rely on normal home insurance?
No. To properly insure your vacation home, you need to get this more specialized insurance. This is because standard household contents insurance usually does not offer the necessary insurance cover for holiday homes.
For example, they do not apply to properties that are uninhabited for long periods of time, and they do not extend to vacation properties that are rented out for rental income.
As with standard household protection, holiday home insurance consists of two parts:
- building insurance This element includes the structure of the property, including the roof, floors, walls, doors, windows and permanent fixtures.
- Content insurance This element affects items inside a property and protects against the cost of repairing or replacing possessions, furniture and furnishings in the event that they are damaged or stolen.
You can take out property and household contents insurance for holiday homes separately or combine them to form an all-in-one policy from a single provider.
Depending on the choice of provider, the policies also include optional coverage for accidental damage, home emergencies or problems caused by renting out your property. These elements may come with additional costs, so it is important to go through the details before signing up and understand what is (and is not) standardly covered by your policy.
The following are examples of the types of cover that can be included in holiday home insurance. If not included as standard, they may be added at an additional cost:
- Accident damage Covers the cost of repairs or replacements. For example, if a guest broke the television
- Home emergency Provides you with contact information for local craftsmen in the event that work needs to be done on your property following an emergency such as a boiler failure or pest infestation
- Castles If the keys are lost or stolen, the change of the locks can be insured separately
- Emergency travel Pays transportation costs in case you need to visit a property quickly to resolve a crisis and fix issues
- Loss of income or rent Provides financial protection against the risk of loss of income. For example, if a property cannot be rented out after a flood or other disaster
- Alternative accommodation Should a property become uninhabitable, this covers the costs for other accommodation for guests
- Liability insurance Provides financial protection from legal action in the event that guests suffer injury to your property for which you are held financially responsible
- Public liability insurance A legal obligation that covers the costs of employees (e.g. gardeners, maintenance personnel) who take action against you after an injury while working on your property
- Court costs Financially protects you from the cost of potential litigation with neighbors or guests.
What is excluded from holiday home insurance?
Insurance policies can contain exclusions, i. H. specific scenarios in which the vendor has declared that it will decline a payout to a claimant.
The exclusions from holiday home insurance vary depending on the insurer. However, exclusions can usually apply to:
- Extended lets Here guests have decided to stay in your accommodation for a long time (e.g. three months or more). In this case, you may need to take out home owner insurance
- Bachelorette parties Groups like these may be deemed riskier by your insurer and will refuse to cover them. You may also be denied coverage if your guests invite other people to the property. This can be the case in particular in the case of theft, for which claims would only be covered if it could be proven that a property had been breached by force
- Damage from pets Especially relevant for pet-friendly properties that are rented out. Your insurer may decline to cover property damage caused by the owner's four-legged friends
- Bedroom numbers Some policies do not cover properties with a large number of bedrooms. Review your details to make sure your provider doesn't impose a cap.
Is holiday home insurance a “must”?
There is no legal requirement to take out holiday home insurance (if you need public liability insurance, you have to take out some form of it – you can take it out separately). However, if there is a mortgage on property, the lender may require home insurance to be taken out as part of the arrangement.
You are not required to buy the policy the lender is offering you.
Vacation home insurance covers your property if it is left uninhabited for a longer period of time, for example 30 days or more. It's also a useful back-stop when renting out a property to strangers.
Who offers holiday home insurance?
Vacation home insurance is a specialty insurance, but you won't get stuck in your choice of provider. Well-known names like Aviva and AXA offer insurance coverage as well as niche providers like Schofields, who specialize exclusively in this type of insurance. Other names are Home Protect, Towergate, and Swinton.
Will a rental agency clarify my coverage?
Probably not. In the case of holiday homes, a landlord's area of responsibility extends to tasks such as managing guests and their bookings, as well as keeping newcomers clean and tidy. It is usually up to the property owner to ensure that they have properly insured the property in question.
Coverage of holiday homes abroad
Many UK based insurers offer vacation home policies that cover both domestic and overseas residences. With the latter, there may be restrictions as to which countries a provider covers. Check before signing up for a policy.
Please note that additional coverage restrictions may apply to holiday homes abroad. Insurers see a higher risk in these properties, as they usually remain uninhabited for longer and can be more prone to damage.
Using a local, overseas insurer instead of a UK insurer is an alternative. Choose a reputable provider, preferably through word-of-mouth from overseas property owners who are in the same area as you.
If you do not speak the local language, make sure that the insurance documents are in English. Also, look for an English speaking call center if you want to make a claim.
Tips for taking out holiday home insurance
- Combined policy Insurance providers can offer a money-saving offer if you take out both elements of your holiday home insurance in one policy
- Make annual payments Paying your insurance annually is likely cheaper than paying monthly for the same amount of insurance
- Take care of your home Reduce the risk of a complaint about your property by making necessary repairs as soon as possible and performing general maintenance.
- Enhance security Installing an alarm system on your property can also reduce the risk of damage and should help keep premiums down
- Pay a higher deductible The deductible is that part of an insurance claim that you are willing to pay before the insurer steps in to pay the balance. Paying a higher deductible can result in lower premiums, but make sure the agreed amount is realistic and affordable.