3. November 2011 12:03
Holiday home – the very words conjure up images of beautiful cottages and apartments in idyllic rural locations. For those who own these wonderful properties it is possible to earn a steady income by letting them out. Holiday homes can be left vacant at certain times of the year, making them vulnerable to damage; it is not always possible to safeguard the condition of the property and protect against issues such as flooding.
Holiday home insurance is something anyone with a second property used for holidays should think about investing in. Holiday home insurance will typically different from home insurance and there are a number of things which need to be considered before selecting a policy.
When buying holiday home insurance the first thing you should consider is how often the property is likely to be vacant for. Holidays are more common during the peak season (times which coincide with school holidays) and therefore holiday homes may be left unoccupied outside of these times.
Holiday home owners will need to consider this when obtaining their holiday home insurance. Having extra safety devices and systems fitted can help to make homes a “lower risk”, something which may benefit from lower premiums.
The area which your property is in will have a huge influence on your holiday home insurance policy. You should always consider both the geological and social aspects of the area when deciding what level of cover to obtain. Common damages to take into consideration are those caused by flooding or animals. If the property is in an area prone to flooding then it is important that cover for damages caused by this is provided in your property. This also applies to areas where native animals and insects could cause damage.
Like standard home insurance, holiday home insurance will cover a maximum of two things: the physical building and the property’s contents. As holiday homes are furnished you will have a large number of possessions within them which could be damaged. Contents insurance is therefore an important product which will help to offer you financial security on these items.
Any extra buildings or features, such as garages and pools will also need to be covered by the insurance policy. It is important that you have all parts of your holiday home covered by adequate insurance in order to financially protect you from damages.
Even if you are only renting your holiday home to friends and family members it is still important that you consider investing in public liability insurance. This can cover damages and injuries sustained to tenants whilst in your holiday home and could also cover accidental damages to your possessions or goods. This will help to keep everyone safe during their stay at your holiday home whilst ensuring that you have the highest possible financial protection for your investment.