Your holiday home is likely one of your most prized possessions. Not only is it a place where you can relax and escape the hustle and bustle of everyday life, but it’s also an investment that can provide you with a solid return in the future.
However, insuring your holiday home is not always straightforward. There are many different factors to consider and it’s important to make sure you have the right level of cover in place to protect your property and possessions.
In this guide, we’ll take you through everything you need to know about insuring your holiday home, from the basics of buildings and contents insurance to more specific cover for things like flood damage or loss of rental income.
We’ll also explain the different types of holiday home insurance policies available and help you to decide which is the right one for you.
So, whether you’re just starting to think about insuring your holiday home or you’re looking for a policy that will provide you with the maximum level of protection, read on for our guide to holiday home insurance in the UK.
What is Holiday Home Insurance?
Holiday home insurance is a type of property insurance that covers your holiday home against damage or loss. It can also provide cover for your possessions while they are housed in your holiday home, as well as protect you against certain liabilities should anything happen while you are away.
There are two main types of holiday home insurance: buildings insurance and contents insurance. Buildings insurance covers the structure of your holiday home, including the walls, roof and floors, while contents insurance protects your possessions inside the property.
You can usually choose to buy buildings insurance and contents insurance together as a single policy, or you can opt for two separate policies.
What Type of Holiday Home Insurance Should I Choose?
There are two main types of holiday home insurance policy: annual policies and single-trip policies. Annual policies provide cover for an unlimited number of trips to your holiday home throughout the year, while single-trip policies only cover you for a specific trip or holiday period.
An annual policy is usually the best option if you visit your holiday home regularly, as it will provide you with peace of mind knowing that you’re covered no matter how many times you go away. However, if you only visit your holiday home once or twice a year, a single-trip policy may be more suitable.
When choosing a policy, it’s also important to consider the level of cover that you need. For example, if you’re planning to rent out your holiday home, you’ll need to make sure that your policy includes cover for loss of rent. Alternatively, if your property is located in an area susceptible to floods or storms, you may want to consider taking out additional cover for natural disasters.
What Does Holiday Home Insurance Cover?
The cover provided by holiday home insurance will vary depending on the insurer and the policy that you choose. However, most policies will provide cover for the following:
- Damage to the structure of your holiday home, including the walls, roof and floors
- Your possessions inside the property, including furniture, appliances and clothing
- Loss of rent if your holiday home is uninhabitable due to damage
- Public liability, which covers you for any injuries or damage that you cause to others while your holiday home is in use.
What Isn’t Covered by Holiday Home Insurance?
While most policies will provide cover for the key areas listed above, there are some things that typically aren’t covered by holiday home insurance. These include:
- The cost of repairing or replacing any contents that are lost, stolen or damaged
- Damage caused by floods, storms or other natural disasters
- Damage caused by theft or vandalism
- Loss of rental income if your holiday home is available for rent but no guests stay there.
How Much Does Holiday Home Insurance Cost?
The cost of holiday home insurance will vary depending on a number of factors, including the size and location of your property, the level of cover you choose and the insurer you go with. However, as a general guide, you can expect to pay around £100-£200 for buildings and contents insurance combined.
Choosing the Right Policy
When choosing a policy for your holiday home, it’s important to make sure you are getting the right level of cover for your needs. Here are some things to consider:
The type of property: Is your holiday home a house, cottage, flat or caravan? Make sure you choose a policy that covers the type of property you are insured for.
- The size of your property: How many bedrooms and bathrooms does your holiday home have? Again, make sure the policy you choose covers the size of property you are insuring.
- The value of your possessions: Do a contents inventory to work out how much it would cost to replace all of your belongings. This will help you to choose a policy with the right level of cover.
- The location of your property: Is your holiday home in the UK or abroad? Make sure you check the cover limits for properties located outside the UK.
- Your holiday rental business: If you rent out your holiday home when you’re not using it, make sure you get a policy that covers loss of rental income.
How to Get Holiday Home Insurance
Once you’ve decided on the level of cover you need, you can start shopping around for holiday home insurance. Here are some things to look for when comparing policies:
- The cover limits: How much will the policy pay out for each type of claim? Make sure the limits are high enough to cover the value of your property and possessions.
- Excesses: How much will you have to pay towards a claim? The higher the excess, the lower the premium, but make sure you can afford to pay the excess if you need to make a claim.
- Discounts: Are there any discounts available? For example, some insurers offer discounts for insuring multiple properties or installing security devices.
- Cancellation fees: What will it cost to cancel your policy? Some insurers charge high cancellation fees, so make sure you are aware of them before you buy.
When comparing holiday home insurance policies, it’s important to read the small print carefully to make sure you are getting the right cover for your needs. If you have any questions, don’t hesitate to ask the insurer or broker.
What do insurers consider a holiday home to be?
Most insurers will consider a property to be a holiday home if it meets the following criteria:
- It is located in the UK or abroad.
- It is not your main residence.
- It is available for rent for at least part of the year.
If your property doesn’t meet all of these criteria, you may still be able to get cover as a second home or investment property. However, the cover limits and excesses are likely to be different from those for a holiday home.
How to Insure Specialist Properties
If you have a specialist property, such as a thatched cottage or listed building, you may need to get cover from a specialist insurer. Here are some things to consider when insuring these types of properties:
- Thatched cottages: Thatched roofs are more vulnerable to fire, so you may need to pay a higher premium for cover. You may also be required to install extra security measures, such as smoke detectors and sprinklers.
- Listed buildings: If your holiday home is a listed building, you may need permission from the local authority to make changes to the property, such as installing double glazing or a new roof. You will also need to get specialist cover for listed buildings as standard policies often don’t cover them.
- Caravans: Caravan insurance is a specialist area and policies vary widely. Make sure you compare cover levels and excesses before you buy.
If you’re planning to rent out your holiday home when you’re not using it, make sure you get a policy that covers loss of rental income. Some insurers offer this as an optional extra, while others include it as standard in their policies.
Remember, if you have any questions about holiday home insurance, don’t hesitate to ask the insurer or broker. They will be able to help you find the right policy for your needs.
To find competitive quotes from a selection of industry experts, come to QuoteSearcher. One simple form puts you in touch with our panel of specialist brokers who can help design a bespoke policy at a fair price.
