So, you’ve got yourself a holiday home in the UK – lucky you! Whether it’s a rustic cottage tucked away in the Cotswolds or a beachside bolthole in Cornwall, owning a second home is a dream for many.
But have you got the most appropriate insurance? If not, don’t worry – here’s your simple guide to UK holiday home insurance, covering what you need to know to protect your property and enjoy total peace of mind.
What exactly is holiday home insurance?
In a nutshell, UK holiday home insurance is a specialist policy designed for properties that aren’t your main place of residence. It’s very different from standard home insurance because it takes into account all the quirks and risks that come with owning a second home – things like leaving it empty for long periods or renting it out to holidaymakers.
Whether it’s your personal retreat or you’re letting it out for extra income, having the most suitable second home insurance cover means you’re typically protected if things go wrong.
What does a holiday home insurance policy usually cover?
Let’s break it down. While cover can vary depending on your insurer, here are some key things most UK holiday home insurance policies typically may include:
Buildings insurance
Covers the actual structure of your property – walls, roof, permanent fixtures – against disasters like fires, floods, or storm damage.
Contents insurance
This looks after your belongings, furniture, and appliances inside the property. Some policies even cover accidental damage or theft by guests, which is handy if you let it out.
Public liability insurance
Super important if you’re renting to guests. This covers you if someone gets injured at your holiday home and decides to make a claim against you. If you’re unsure whether you need public liability insurance for a rental property, it’s important to understand that, as a property owner, you have a general duty of care. This means you must take reasonable steps to prevent third parties, members of the public, or neighbours from suffering injury or property damage as a result of your holiday home.
Your holiday home insurance should protect you against such claims, but it also needs to cover additional risks. This includes potential liabilities towards tenants and paying guests who are occupying the property on a short-term basis. In essence, your policy should also include landlord liability cover.
Loss of rental income
If your property is damaged and can’t be rented out, some insurers will cover lost earnings from cancelled bookings.
Unoccupancy cover (unoccupied property insurance)
Unlike standard home insurance, UK holiday home insurance may cover you if the property is empty for 30, 60, or sometimes even 90 consecutive days.
Why won’t normal home insurance do the job?
Here’s the thing – standard home insurance won’t cut it. Why? Because insurers see holiday homes as a bit riskier. Think about it – they’re often left unoccupied, might be in rural or coastal spots where bad weather can cause havoc, and if you’re letting them out, there’s always the risk of accidents involving guests.
That’s why specialist holiday home insurance in the UK is so important. It’s designed to cover all these extra risks that your usual home insurance just won’t.
How much does holiday home insurance cost?
It varies, but on average it’s a little pricier than standard home insurance because of the extra risks. Insurers will look at things like:
- where your property is located (coastal or flood-prone areas may bump up your premium)
- how often you rent it out
- the rebuild cost of the property
- how secure the place is (alarms, CCTV, locks, etc.)
- how long it sits empty each year.
How can I keep my premium down?
Good news – there are ways to save! Here are a few tips:
- install a security alarm and consider CCTV
- keep on top of maintenance – think leaky roofs and burst pipes – this will also typically be a condition of your insurance cover
- opt for a higher voluntary excess if you can (this is the amount you are financially liable for in the event of a successful claim)
- bundle buildings and contents cover together to attract a discount
- use a reputable insurance broker – such as Cover4letProperty – to help find you suitable and cost-effective cover.
Further reading: Guide to UK holiday homes.
