If you’re a homeowner, you might feel familiar with how home insurance works. If you are buying a second or holiday home this spring, you might want to think again. There are similarities in the insurance arrangements for the two types of property, but there are also important differences.
Let’s take a closer look at what makes second home insurance in the UK distinct.
Use is the key to insurance
Property insurance is all about the management of risk. Those risks vary depending on the way in which a property is used. That is why insurers regard the main residence that is your home in a different light to any holiday home you own – second home insurance in the UK is generally treated as a distinct category of cover.
This distinction may become clearer as you read through our Guide to UK Holiday Homes.
Your principal home v. your second home
Here are some of the differences in the use of your main residence compared to your second home.
Your main residence
- in the first case, your use of the property is self-evident – you use the property as your main residence. It is where you live;
- it is the base and safe haven to which you return after each day’s work;
- your children may attend schools nearby;
- you are probably well known by the neighbours around and about;
- above all, it is the dwelling where you and your family are most likely to spend the majority of your time; so,
- your main residence is likely to be protected by standard home insurance – perhaps a combined building and contents form of standard home insurance;
Your second home
- in addition to your principal home, you may also own a second home;
- you might occupy your second home from time to time – on holiday, as a retreat from the day-to-day, or an escape to the countryside or beach;
- when you are not using your second home, you have an opportunity to let it to short-term visitors – effectively becoming a landlord for the duration of your tenants’ stay;
- neither you nor any paying guests live in your second home for any length of time; so,
- the dwelling may typically require specialist UK second home insurance, depending on how it is used.
The keys to second home insurance
Insurers recognise the features that make the use of a second home different from that of a main residence. The assessment of the respective risks is, therefore, also different.
Because you do not live there, your second home is likely to be unoccupied for significant periods. An unoccupied or vacant home may be more vulnerable to the unwanted attention of intruders, thieves and vandals, while otherwise minor maintenance issues may develop into major incidents if there is no one there to raise the alarm or take immediate action.
When your second home is let to guests – however short their stay – it may also be exposed to additional risks and could give rise to potential liability if a visitor or other third party is injured or has their property damaged in connection with the property.
If you are in the throes of buying a holiday home ready for this spring and summer, therefore, you may wish to consider the safeguards provided by specialist UK second home insurance – especially as it relates to cover when the property is unoccupied, when you or guests are there, and the landlord liability insurance that may be appropriate when your holiday home is let.
Further reading: Holiday let insurance UK: Essential cover for short-term rental owners.
