Posts Tagged ‘holiday home insurance’

How to look after your holiday home all year round

Sunday, June 14th, 2009

So at long last you have managed to find your perfect place in the sun, the holiday home you have always wanted and the chance to get away from it all for a few weeks of the year. It’s a wonderful idea, and a great way to spend the summer, relaxing in your second home and enjoying sunnier climes without the worries of hotel fees and other guests.

But problems can arise when you view your home purely as a holiday retreat, without thinking about how it will surive the winter when you’re not around to take care of it. A lot of second home owners fall into the trap of believing that their overseas property insurance will cover them for any problems that may arise throughout the whole year, but in fact many policies contain conditions that can leave the claim invalid if the property is damaged whilst unoccupied.

The most common trap that people fall into with second home insurance is not realising that their policy requires them to fulfil certain obligations for the claim to be valid. Often buried in the small print, common examples of these requirements are switching off and draining the water system every time you leave, not leaving the property unattended for over 30 days or even performing weekly checks.

Failure to meet these conditions could leave your holiday home without cover if something happened, so it’s important to thoroughly check your policy to make sure there are no hidden catches in the small print. If you need to, upgrade your policy – some second home insurance companies like Schofields offer insurance for holiday homes that remains valid throughout the year without these requirements. 

Of course prevention is better than cure, and you should do everything in your power to protect your holiday home against potential damage over the winter months. Security is key, and it’s important to make sure that no valuables are left in sight and that the house is secure. If possible it’s advisable to have someone you trust locally check on your holiday home regularly just to be sure nothing has gone wrong, and to catch it early if it has.

Another common problem that can arise in unattended holiday homes is that water pipes may freeze or burst during the winter. Last year hundreds of holiday owners were caught out by the unexpected cold weather, finding their second homes damaged by water as a result of being unprepared. Many of these unfortunate homeowners also found that their insurance policies did not cover them. There is no way to guarantee your holiday home will be safe from disasters like these but there are a few simple steps you can take that could make all the difference.

Firstly, don’t turn the heating off over the winter – it may save on heating bills, but allowing the property to fall below freezing could cause serious damage to the pipes, which would cost a lot more. Make sure all pipes are thoroughly insulated – don’t forget there are probably a few in the loft space above the roof insulation where heat from the house cannot rise to. Turn off the water mains to limit the amount of leakage if a pipe does burst, and most importantly if you do discover a frozen or burst pipe, call a plumber immediately!

Insuring your second home abroad to let

Sunday, June 14th, 2009

If you own a second home abroad, letting it out when you’re not using it can be a convenient source of easy income, not to mention the reassurance that your property is in use and being looked after rather than sitting empty. Unfortunately in reality it’s not that simple and of course there are risks involved in letting your holiday home to people you don’t know. After all, you have a lot of money invested in your place in the sun, and allowing others to holiday there, although the benefits are clear, can put your property and possessions at greater risk. But it is a problem easily solved, all you need to do is make sure that your second home insurance policy covers you for the type of problems that could arise from letting your holiday home.

A lot of insurance policies for holiday homes do not include cover people other than family and friends, so make sure you get a specialist holiday let insurance policy, which will allow you to rent the property to other tenants. Of course there are obvious risks to letting strangers into your holiday home, so making sure you have a policy which covers accidental damage to the house and its contents will help reassure you that you are protected for any eventuality. Another thing to consider is what you would do if something did go wrong with the property and the potential loss of rental income – some policies will not only cover this cost but also provide alternative accommodation for you and your tenants in the event that the property is uninhabitable.

The main thing to remember when choosing an insurance policy is to make sure you always read the small print thoroughly. You might find that house insurance in Spain, Italy and other popular holiday destinations is cheaper to buy from the country in question, but these European policies for holiday homes are often a lot more limited than UK policies in the cover they offer. For instance some countries do not insure property against damage caused by a guest or tenant as standard, because in these countries it is assumed that visitors will be aware they should have their own ‘liability insurance’ policy. A catch like this in your insurance policy could put people off visiting from the UKL as they would have to pay more for their travel insurance, not to mention the risk to you as you’d be relying on the tenant to have insurance, and if they didn’t you wouldn’t be covered. The easiest solution is to take out a second home policy based in the UK, where public liability insurance is included in the premium as standard.

Another common mistake that holiday home owners make is accidentally signing a policy where they are required to visit the property and peform regular checks every week. Failure to cpomplete these checks would render the policy invalid but obviously when your holiday home is hundreds of miles away this is just not possible. Fortunately not all insurance policies have requirements like this, so with a bit of shopping around it’s possible to get a great deal but remember that it is still advisable to have the property checked regularly (by an agent or reliable trustworthy neighbour) for your peace of mind and in case anything does go wrong while you are away.