In a nutshell, UK holiday home insurance may typically be required (and also may be a condition of your contract with your mortgage provider) whether your property is for your own exclusive use or for generating income.
It is designed to provide financial protection in case something goes wrong.
Definitions of a holiday home
A holiday home is usually regarded as a property you own and which you use exclusively for your own (or close family members) recreational purposes during a few weeks each year.
A UK holiday home could also be one that you plan on letting out to paying guests.
(It is important to note that some policies may differentiate between a holiday home used exclusively by you and one you run as a business).
Typically, caravans on a caravan site would not normally be considered to be a holiday home for insurance purposes.
Another important distinction here is that a holiday home is not your normal place of domicile. Although you may be liable for local taxes and charges, you typically will not be on the local electoral register and the property will not be occupied by you for 365 days each year.
Components of cover
These should not be unfamiliar to anyone who already owns a home. Within UK holiday home insurance, they may typically include:
- buildings cover;
- contents insurance;
- third party liability.
If you use your second home exclusively, you may think that third party liability cover isn’t required, given you are unlikely to have visitors whilst on holiday. It is worth remembering, however, that your property (and therefore you) could be held accountable for injuries someone sustained or damage to somebody else’s property even while you were not there. That is why third party liability insurance is so important.
If you have paying guests, then third party liability insurance is also imperative in case someone injures themselves while in or around your premises.
Points to consider
In some cases, holiday homes may be subject to some special conditions, perhaps including:
- they might typically be positioned in locations that are rather more prone to flooding than might be the case with permanent residences. If your holiday home is located on the coast, alongside a river or adjacent to a lake, there may be special provisions relating to flood insurance cover;
- you may find that the cover levels for your contents are more restrictive due to the fact that your property will sit unoccupied for much of the year – or, with paying guests, the fact that your contents may be more liable to damage;
- you may, at times, be required to ask someone in the area or a local property management agency to periodically inspect your holiday home when you’re not there in order to spot and repair any problems that have arisen;
- your policy will typically require you to be in full compliance with the law and local authority regulations. It is worth noting that these can be significantly different depending upon whether the property concerned is in England, Scotland, Wales or Northern Ireland.
Our UK holiday home insurance offers what we believe is a cost-effective and beneficial form of cover for the majority of holiday homeowners and those whose let their second home. Why not contact us as soon as possible to find out more?
Further reading: Guide to UK holiday homes