They are both homes you own, so it may seem reasonable to assume that the insurance covering one would also be suitable for the other. However, this is not always the case. Because a holiday home is often used differently from a main residence, specialist UK second home insurance cover is typically required.
Let’s examine some of the reasons why.
Main residence vs holiday residence
Standard home insurance is typically designed to cover the structure and fabric of your main residence. The building insurance may also be combined with contents insurance to comprise an overall home insurance package.
UK holiday home insurance is also designed to cover the structure and fabric of your second or holiday home and may be combined with appropriate contents insurance.
However, depending on the policy selected, second home insurance may also offer additional cover options, such as a higher sum insured for property owners’ liability insurance (particularly where paying guests stay at the property), together with cover relating to domestic staff, such as cleaning or gardening support used to help maintain the property.
Cover may also be available for loss of rental income (for example, where paying guests are due to stay but the property cannot be occupied following damage caused by an insured event, such as flooding).
The two kinds of insurance – home insurance and UK holiday home insurance – differ because of the ways in which your main residence and your holiday home are used.
The risks are different, and those differences may mean that standard home insurance does not typically provide cover that reflects the risks associated with a holiday home.
Holiday home insurance and mortgage requirements
Having appropriate cover for your second home may also typically be a condition of your mortgage agreement.
If your holiday home is financed with a mortgage, your lender will usually expect the property to be insured throughout the term of the loan. This is because the building itself forms part of the security for the mortgage.
However, the type of insurance required for a holiday home may differ from that arranged for a main residence. Many lenders expect cover that reflects how the property is used, particularly if it is left unoccupied for extended periods or occasionally let to paying guests. Standard home insurance policies may not always meet these requirements.
Mortgage providers may typically require buildings insurance that covers risks such as fire, storm damage, and flooding, but they may also specify minimum sums insured or policy conditions that must be met. In some cases, they may ask to be noted as an interested party on the policy.
Where a holiday home is used for short-term letting, lenders may also expect confirmation that the insurance remains valid during guest occupancy. This is important because some standard policies restrict cover if a property is let without the insurer’s agreement.
For these reasons, it is often advisable to check both your mortgage conditions and your insurance policy wording carefully. If you are unsure whether your existing cover meets your lender’s expectations, a specialist holiday home insurance provider may be able to help you arrange protection that better reflects how the property is used.
The risks your holiday home may face
As we have mentioned, a second home typically faces additional risks to that of an owner-occupied home. These risks may include longer periods of vacancy, delayed detection of maintenance issues, increased footfall from paying guests, and differing lender or insurer requirements. …
Being continuously occupied vs occasionally occupied
Your main residence is where you live. It is your home – a home that is more or less continuously occupied.
Your second home, on the other hand, may be occupied only occasionally – as a weekend retreat or somewhere that provides an escape from life’s hustle and bustle from time to time. You may let it to paying guests.
There may be significant periods – especially out of season or during the winter, for example – when the holiday home remains vacant.
Those periods of unoccupancy, when no one is under its roof for a significant period, may increase the property’s exposure to certain risks.
- Having maintenance issues and problems promptly dealt with vs delays in detecting issues
Another reason why standard home insurance may not always be suitable is because of the time it may take to detect a problem.
When there is no one occupying your holiday home, an otherwise minor maintenance or security issue may develop into a more serious incident because there is nobody there to report it or take remedial action.
- Use for owner-occupied vs short-term tenancies
With your own home, you are the owner-occupier. An insurer knows where they stand and, in all likelihood, has based the policy on the assumption that the property is occupied by you and your household on a permanent basis.
Although you might also own a second home, there may be – often quite regular – times when you let it to visiting holidaymakers on short-term rental agreements. Sometimes the owner might be there, at times there is the constant turnover of paying guests, while at other times, there is no one there at all.
Having paying guests can see more footfall at your property, increased wear and tear, a heightened risk of accidental damage, plus the potential need for alternative accommodation and loss of rent cover. Our post: Holiday let insurance UK: Essential cover for short-term rental owners discusses these risks in more detail.
In essence, this combination of changing occupancy and usage patterns is one of the main reasons insurers assess holiday homes differently from permanently occupied properties. Holiday lets may require specialist insurance, depending on how the property is used and the terms of the existing policy.
Finding suitable cover for your UK holiday home
Holiday homes are used differently from main residences, and insurance requirements may vary depending on whether the property is occasionally occupied, left empty for periods, or let to guests.
Checking that your policy reflects how the property is actually used can help reduce the risk of gaps in cover.
If you would like guidance on arranging insurance that is appropriate to a UK holiday home, the team at Cover4LetProperty can help you explore options tailored to your circumstances. Please contact us to discuss your requirements or request a UK holiday home insurance quote. Alternatively, you can request a second home insurance quote here.
Further reading:
Fire safety rules for UK holiday home owners renting out their property
