Holiday Home Insurance A Guide To Sums Insured
Are you fully covered?
Our holiday home insurance may give you peace of mind should the worst happen, however you'll need to give us the correct buildings and contents sum insured so we can ensure the right amount of cover is provided.
Underinsurance
It is important not to underinsure your property for the following reason. "If the property insured at the commencement of any physical loss or damage to such property be collectively of greater value than such sum insured (adjusted for index linking) you will be considered as your own insurer for the difference and shall bear a rateable proportion of the loss accordingly". This means that if you only insure for 50% of the reinstatement value of your property or contents you stand to have any claim payment reduced by a half. The guidance below will help you calculate the right figure.
Rebuilding Costs
Your holiday home buildings sum insured should represent the amount that you would have to pay to rebuild your holiday home again should there be a total loss eg in the event of a fire. This should include the cost of rebuilding boundary walls or fences, reinstating driveways, outbuildings and landscaping the garden. Internally you will need to consider fixtures and fittings such as built in bedroom furniture, kitchens and bathrooms as well as redecoration.
The Association of British Insurers' (ABI) rebuilding cost calculator http://abi.bcis.co.uk/ is designed to help you assess the rebuilding cost of your property, if it falls within a range of standard house types. There is of course no substitute for instructing a professional Surveyor to prepare a Rebuilding Cost Assessment for insurance purposes.
Finding a Surveyor Professional advice can be obtained from a Chartered Surveyor: the RICS web site can be used to search for a Chartered Surveyor in your area.
Index linking
Because your Holiday Home Insurance buildings sum insured is index-linked (ie its adjusted according to inflation), if the worst happens, your claim will be paid in full up to the sum insured. However it is important that the sum insured was correct at outset and that it is increased to reflect improvements that you make to your holiday home property, such as adding an extension, conservatory or designer kitchen.
Contents Calculator
Your holiday home contents sum insured is the total value of replacing your holiday home contents with new items, should there be a total loss eg in the event of a fire. It's important that your sum insured is correct so that Ecclesiastical can quickly pay any insurance claims you make.
The most effective way of working out your contents sum insured is to draw up an inventory of all the contents in your holiday home, room by room. Against each item write the replacement cost for a similar brand new item. In respect of books, works of art, television and audio visual equipment a £1500 single article limit and £5000 any one property applies; for items exceeding these limits please refer to us for further advices. Index linking may apply to the contents section of your Holiday Home Insurance policy, however it is important that you ensure that the sum insured is sufficient at renewal.
Loss of rental income
Our Holiday Home Insurance Policy provides loss of rental income cover for insured perils, which consequently render the holiday home uninhabitable. As it may take some time to rebuild a holiday home levelled by fire or damaged by flooding; cover is provided for up to two years. As standard you will be insured for up to £75,000, however additional cover is available should your projected gross holiday letting income exceed £37,500 per year (£75,000 over two years).
Should you require any additional guidance please contact a member of our Holiday Home Insurance Team on 01237 429444.
All you need to know about our Holiday Home Insurance Policy can be found here.