Holiday home or second home insurance policies are tailored to meet the specific needs of holiday home owners. The holiday home requires special coverage for times that it is unoccupied, used by the owner or other family, occupied by friends and commercially let. Finding a suitable policy can be difficult and expensive due to the numerous risks associated with a holiday home. Most insurers consider the holiday home a higher insurance risk than a primary residence.
When shopping for a policy, it would be wise to ask the agent for a holiday home insurance handbook, which clearly outlines the cover as well as exclusions and limitations. Security and un-occupancy requirements may state the property needs to be checked weekly, and will not remain unoccupied for more than thirty days. The insurer may also require that the heating system be drained and the water, power and heating system be turned off if the home is left unoccupied.
The holiday home insurance handbook will outline the benefits of the building and contents insurance, and may include public liability coverage, employer liability, accidental damage to contents, accidental damage caused by guests, loss of pre-booked rental income and cost or alternative accommodations, and swimming pool insurance including liability.
Holiday home insurance should cover buildings and contents. The policy handbook will list the buildings cover separately from the contents cover. Buildings insurance covers may include frost damage to water tanks and plumbing, glass breakage, accidental damage to underground plumbing and water supplies and electric or telephone cables, debris removal, and increased water charges following an escape of water.
Common contents insurance covers everything you would take with you as well as general contents including furniture, furnishings and electronics that may be damaged or lost due to fire, storm, flood or theft. Most contents insurance will not cover personal valuables such as jewellery. These items should be covered under the main household policy or travel insurance.
It is important to be familiarized with the covers, restrictions, exclusions and limitations outlined in the holiday home insurance handbook. Unfortunate events occur. Long periods of un-occupancy, freezing pipes in the winter, accidental damage caused by guests, injuries to caretakers and domestic staff, fire, storms and theft leave the holiday home at risk. If the homeowner has not complied with the requirements of the insurer, the cover may be invalid.
