Holiday home & expatriate insurance

Holiday home & expatriate insurance

With stress levels on the rise, the taking of a holiday home has become a more common way to ensure that we get away from the norm and relax, plus with some of the more solid investments are still coming from the acquisition of property, especially abroad. However, the taking of a 2^nd residence means that many homeowners will need specialist insurance to protect their nest eggs.

Owning a holiday home brings with it a range of potential risks that mean standard home insurance policieshome insurance policies will not provide adequate cover. As with your main abode, your mortgage provider may insist on proof of buildings insurance before you can purchase a 2^nd home, plus most holiday homes will need tailored cover and it is important to understand what is covered as much as what is not, along with stipulations that your insurance provider might have.; For example, standard home insurance policies may exclude lettings and periods where the property is left vacant for long periods of time and during this unoccupied spell, some Insurers insist on the risk of potential hazards being cut down by measures such as heating systems being drained.; These kinds of terms may prove to be a costly exercise if you need to hire someone to do it for you and not to mention, a huge inconvenience, but not adhering to them could invalidate your policy.

Spending more time at your holiday home could also have an adverse knock on effect with your current home insurance policy, as spending long periods away from your home, puts it on a higher risk level.; Make sure you check the conditions of your main residence policy with regards to leaving your home unattended for long spells, as some insurers may deem your current contract void, should you need to claim.

What does it cover?

Tailored insurance will take these other factors into consideration, and some providers now have specialist expatriate home insurance for relocations abroad in selected countries.

Holiday homes need a comprehensive home insurance package of both buildings and contents insurance to cover you in the event of damage, loss or theft to your structure, fixtures and fittings, along with your movable belongings.; With contents, you will need to calculate your costs the same as you would with your main abode and it is a good idea to keep this inventory as a checklist for yourself, to make sure that any items have not gone missing.; It is also important to note that any valuables you leave in your holiday home whilst it is vacant or being let out, may not be covered by your policy as they are subject to a much higher risk of damage or theft.

Rebuilding

When it comes to buildings insurance, should your holiday home be destroyed by an event such as fire or flood, you must make sure that it is insured for the cost of a total rebuild and not the market value of the property.; For properties recently purchased both abroad and in the UK, your Mortgage Valuation will list this rebuild figure but remember to add to this cost if any changes have been made to the property. ;Policies that are ‘index linked’ will help as the value insured stays in line with the rebuild costs. See ‘insurance calculators’ to help with the estimation of your contents and your rebuild costs (especially helpful for properties outside of the UK).; Should you need further assistance within the UK; a surveyor from the Royal Institute of Chartered Surveyors (RICS) can be appointed to assess the rebuild cost of your holiday home.

Safety regulations

Also bear in mind that UK holiday homes that are rented out, face stringent safety laws, such as safety certificates for electrical and gas appliances, plus fire and furnishings safety regulations. These will need to be looked at as an addition to your policy, if you are buying to let.

Standard holiday home insurance typically covers:

• Accidental damage - will ensure that the homeowners property and possessions are financially covered should they be subject to accidental damage, which is a likely scenario for holiday homes that are let out.
• Home emergency cover - will cover any repairs, call outs and assistance where the homeowner or guests can speak to an advisor should there be a domestic emergency.
• Public liability insurance - will cover you from minor to fatal injuries to a third party incurred on your property.
• Employee liability insurance - will cover you against any accidents that happen on your grounds by people in your employ, which could include any maintenance staff hired to look after your property in your absence.
• Personal possessions cover - will cover your belongings that regularly travel with you between home and holiday home, such as laptops and mobile phones.
• Loss of income - will cover you in the event of damage to your property that prevents your holiday home from being let, such as burst pipes and resultant water damage, etc. Essential during peak holiday seasons for highest potential income.
• Alternative accommodation - will cover the cost of re-housing your guests, should an event occur that damages your property, whilst it is being let. Essential for maintaining good customer service for a regularly let property.

Cutting the costs of your holiday home insurance:

• Increase your excess - you can lower your annual premium if you voluntarily agree to pay a higher excess if you claim. ;By upping your cost commitment, you are lowering your risk factor to the Insurer – but make sure the amount of excess you choose is a price you can afford to pay, should you need to claim.
• Combine your policies - some providers may offer a package deal that includes comprehensive home insurance cover for all of the properties you own. ;Just make sure that you check your policy covers you if you then rent your properties out.
• No claims discount - by NOT claiming on your policy, you will be building up your no claims bonus and will normally receive a discount on your annual premium each year from your Insurer as a reward.
• Security - taking extra security measures such as installing fire or burglar alarms and advanced locking systems and hiring someone to maintain your property in your absence, is proof of your vigilance and can in turn, reduce your premiums.