A question that all holiday homeowners will have asked themselves, or perhaps wonder when their insurance is up for renewal. How much should I be paying and is it value for money? So how much should your holiday home insurance cost?
When it comes to insurance, the true cost is the price you would pay should the worst happen. Especially if you find you’re not fully covered. What would you do, if for example your holiday home were to become uninhabitable? This could be due to a fire or the severe flooding we’ve seen across the UK in recent years.
In this case having the wrong insurance in place at a lower premium would be a false economy. Thus a proportion or at worst all the cost of restoring your cottage potentially falling at your feet.
For that reason, we’ve taken a look at some of the key areas you need to focus on when arranging holiday home insurance.
Is your insurer aware that you let your holiday home to paying guests?
Most conventional home insurance policies exlude cover for letting to paying guests. Therefore relying on a home insurance policy to cover your second home for holiday letting is false economy. In the event of a claim the policy may not provide you with the cover you need.
How much would it cost to rebuild your holiday home?
Understanding the cost of rebuilding your holiday home, rather than its current market value is very important. The cost of rebuilding your holiday home is central to ensuring you have the correct buildings insurance in place. This is the maximum amount that your insurer will need to pay out should the worst happen, and therefore the amount you should be insured up to. Under declaring the cost of rebuilding your holiday home to save premium could mean you are underinsured. The effect of this is that you may have to meet a proportion of the cost of a claim yourself. The amount would depend on the degree of underinsurance but far outweigh any saving made on your holiday home insurance cost.
If your holiday home falls within a range of standard house types the Association of British Insurers (ABI) have a useful rebuilding cost calculator to aid you in getting the right figure. You can read more about how to get your holiday home insurance buildings sums insured right here:
How high is your Public Liability cover?
With so many guests visiting holiday homes across the UK each year, not having an adequate level of Public Liability insurance is a potential risk. Whether there’s been a slip that resulted in cuts and bruises, or a far worse accident, this area of cover will keep your holiday cottage protected against the legal costs and any compensation that may occur.
Our own policy covers our holiday homeowners for up to £10 million, so it’s worth checking your own Policy to review your current level of cover.
Loss of rental income
Holiday homes come with specialist circumstances and therefore need specialist insurance. A key component of this is loss of rental income, which steps in to support you if your holiday home were ever to become uninhabitable due to fire, flood or storm damage.
This cover ensures you’ll not lose out on the rental income you’d otherwise have gained during that period, which could be catastrophic, particularly if your holiday cottage were to be out of action during the peak summer months.
We encourage all holiday homeowners to check that they have this cover in place, and that they have an adequate level to cover their current rental income.
Our own policy offers our holiday homeowners £75,000 of loss of rental income over two years as standard. Is your rental income higher? We can extend your cover to reflect that.
Accidental damage and theft even whilst occupied by guests
We’ve covered off some of the larger and key areas of cover that make up your policy, but there can be some added extras that support you and really add value to the premiums you pay each year when you need to call upon them.
Guests bring with them plenty to think of when it comes to insurance; what happens if they break something? Stain that new carpet or rip those beautiful curtains? How about if something were to be stolen whilst your guests are staying?
As specialists in holiday home insurance for over 25 years, we understand the day to day running of holiday cottages. Our holiday home insurance policy reflects that in the broad range of cover we provide. Whether it’s accidental damage, covering you for that theft or getting you back on your feet after a significant event, we’re here to support you.
Boshers offer specialist holiday home insurance to owners across the UK. Need an insurance quote for your holiday let? Give us a call on 01237 429444.