What does UK holiday home insurance cover?

Posted: 6th Mar 2018

There may be many reasons why you are considering purchasing a holiday home.

Whatever those reasons might be, it will be imperative to consider carefully the subject of UK holiday home insurance.

Some basics

Your holiday home has almost certainly cost you a substantial sum. It should therefore be your natural instinct to consider ways of protecting your property, its contents and the money that you have invested in it.

The natural solution to that is an appropriate UK holiday home insurance policy.

It’s also worth mentioning that if you have taken out a mortgage or any other form of loan to assist you with the purchase of your holiday home, the lenders will most likely have a clause in the contract requiring you to maintain such insurance cover at all times.

What the cover provides

Much of what should already be familiar to you, from standard home insurance, will be included in typical UK holiday home insurance policies. These cover elements might typically include:

  • covering your property against a range of natural perils perhaps including things such as storms, fire and so on;
  • burglary, theft and vandalism arising from illegal forced intrusion into your property;
  • third party liability. That is essentially covering situations where a member of the public or other third party might suffer an injury (or damage to their property) as a result of your holiday home. In such circumstances, they may take legal action against you for compensation.

There are though some additional things that are worth keeping in mind in terms of the scope of your cover.

Variables

There are a few additional notable points with respect to UK holiday home insurance:

  • the exact cover your policy provides and how much you pay for it, may vary depending upon how frequently you plan to occupy your home within a 12 month period;
  • some UK holiday home owners not only use their property for their own recreational purposes but also as an income generator through holiday or other short-term letting. If that is your intention, UK holiday home insurance can be provided to cover such but it is imperative at the outset that you make your intentions clear to your insurance provider.

If you have declared your usage to be restricted to you, your family and your friends but then subsequently decide to start letting it out, you may be putting elements of your holiday home insurance at risk. Make sure you have discussed the change in advance with your insurance provider and obtained appropriate cover;

  • by definition, holiday homes are often located in areas of natural beauty. Remember though that if yours is located in countryside known to be prone to flooding or is in some coastal locations also categorised as high-risk in that respect, there may be a need to make special UK holiday home insurance provisions for flood risk.

Typically, UK holiday home insurance is relatively straightforward, providing you are dealing with an established expert in the field. If you have any doubts and concerns about the applicability of such cover in your circumstances, contacting such a specialist should be able to resolve your worries and help you to decide on a suitable way forward.

Further reading: Guide to UK Holiday Homes.