If you are lucky enough to own a holiday home you will need to secure your investment with holiday home insurance. Unlike regular homes, your getaway pad will have a few extra considerations when it comes to insurance. To help you get started we have 12 of the most important things you need to consider when buying holiday home insurance.
AA Home Insurance
12 Things to consider when buying holiday home insurance￼
1. Does your holiday home need insurance?
Having a holiday home without cover is a liability and can leave you In a very vulnerable position if something did happen. If you are taking out a mortgage on your holiday home your loan provider may not validate your loan without it. Which is another good reason to always have holiday home insurance in place.
2. Why you need a specialised holiday home insurance policy
Most standard home insurance policies have a clause to state that your cover will be impacted if you are absent for a long period of time. Therefore standard home insurance is not suitable for your holiday home. There are also some extra risks associated with holiday homes. So, you may invalidate your policy by choosing not to get the right insurance in place.
3. Understanding the extra risks involved with holiday home insurance
As a new holiday homeowner, you need to be aware of how the extra risks involved affect your insurance policy. You won’t always be there to spot a leak in time. So, if any damage does happen you won’t be there to minimise it. Empty holiday homes are also at more risk from burglary or even squatting situations. So, specialist property insurance is required to protect you from increased risk.
4. Does your policy protect you from third party claims?
Holiday homes are often shared with extended family and friends. Your policy should always include cover for third party claims. This protects you from any unexpected legal claims from anyone using or visiting your holiday home. With the AA we cover claims up to €3,000,000. Giving you peace of mind from the unexpected.
5. What should your holiday home insurance cover include?
While your holiday home has a different use to your regular residence, it’s still needs a high level of insurance cover. Holiday home insurance is divided into building and contents cover. Buildings cover insures you against structural damage. This is where you will calculate your rebuild costs. While contents insurance cover your personal belongings. If you have made a considerable investment in your holiday home you won’t want to miss out on both levels of cover for the best protection.
6. Does the holiday home policy have a home security requirement?
As your holiday home will be vacant for longer periods it’s not uncommon for policies to include home security requirements. This usually requires you to have external doors and deadlocks. If your holiday home security is not up to date you may not be covered from burglary or theft.
7. Always check for unoccupancy requirements
Most home insurance policies include an unoccupancy clause. This usually states that if you leave your home vacant between 30-40 days your policy will be invalidated. This is something you will need to consider when buying holiday home insurance.
8. You may need a property manager
Some holiday home insurers will have maintenance requirements. This can include having someone inspect your property once a month. Make sure to confirm this with your insurance provider. Having the added cost of a property manager is not ideal, but most providers will agree to have a neighbour or family member take out these checks for you.
9. How much holiday home excess should you pay?
When choosing how much holiday home excess insurance you should pay its wise to not overstretch yourself. While a high excess can be appealing for lower insurance costs. Never set an unattainable amount, should you ever have to make a claim you could leave yourself in a vulnerable financial position.
10. Are you planning any holiday home renovations?
Are you planning a renovations project in your holiday home? To avoid invalidating your policy let your provider know ahead of any construction work you have planned.
11. Does your policy cover emergency accommodation?
If you do end up in a difficult situation while staying at your holiday home, you will be glad you checked your cover for emergency accommodation. Most holiday home insurance includes this but it is worth checking with your provider beforehand.
12. Will your holiday home insurance cover lettings as well?
Not all holiday home insurance will cover you for lettings. Renting out your holiday home comes with added risks. You need to discuss this with your home insurance provider to make sure you are covered. If you’re planning on long-term lettings maybe a landlord home insurance policy will suit you better.