If you’re new to the holiday cottage industry, or even if you’re a seasoned professional, it’s really important that you familiarise yourself with all of the relevant legal requirements for running a holiday cottage as a business.
And its equally important that you cover yourself should anything go wrong, which is where insurance comes in. It’s not a nice to have, it’s absolutely essential. Read on to find our handy Owner’s Guide to holiday home insurance.
Holiday Cottage Insurance – What you need to know
Don’t rely on a normal house insurance policy
Some owners, particularly those who have lived in the property before changing it into a holiday let, make the mistake of taking out a normal home insurance policy. This is not a good idea. The likelihood is you won’t be covered as most normal policies don’t cover a property which is unoccupied for regular periods throughout the year. Make sure you take out a policy specifically designed for holiday homes.
Think about a specialist provider
There are plenty of insurance companies which specialise in holiday cottage insurance. It makes sense to choose one of these suppliers as they will be able to lead you through all of the various elements your policy will require.
Always consider these main elements:
- Buildings Insurance
This will cover the structure of the holiday home such as the walls and roof, but should also take care of the main fixtures such as your fitted kitchen and bathroom. Make sure the policy covers you for the cost of completely rebuilding your holiday home if it was totally destroyed, for example as a result of a fire.
- Contents Insurance
Your contents insurance should cover you for replacing the entire contents of your home if you need to. Go through the house and make a full inventory, including the cost to replace, for every room and don’t forget anything which may be stored in the loft or garden. This includes the carpets, curtains, and furniture – everything in the holiday home which is not part of the main structure.
- Public Liability Insurance
When you are letting a holiday home and inviting people onto your property it’s a good idea to take out public liability insurance to cover yourself for injury or even death to a third party on your property.
Insurance policies and what they cover will vary from provider to provider and some will offer various add-ons on top of the essential elements of cover. It’s worth considering the following extras if you want to make sure you are covered for all eventualities:
- Loss of income
- Cost of alternative income
- Accidental damage
- Home emergency cover
How to get a good deal
There are several things you can do to try and make sure you’re getting the best deal possible:
- Shop around
Remember there are lots of suppliers out there, and just as you would for your own home insurance, it pays to check if you could get the same policy cheaper elsewhere. It also may be cheaper to take out separate policies rather than choosing one supplier for each element
- Increase your excess
Consider how much excess you are happy paying. If you want a lower premium then a higher excess will normally give you that.
- Secure your holiday home
Ensure that the holiday home is fitted with an approved alarm, door & window locks etc
Hints and Tips
- Check your policy for any specific security measures required and make sure you have taken them
- Check if you are covered should a guest leave a door unlocked or a window open
- Check any specific conditions for the winter – i.e. do you need to leave your heating on?
- If you have accidental damage, make sure it applies to guests as well as yourself
- Check how long you can leave the holiday home unoccupied before invalidating cover
- Make sure your public liabitly covers you for outside of the property as well as inside, including any gardens, children’s garden toys, pools and hot tubs
- Read your terms and conditions to make sure you know your policy inside out
- Check if loss of earnings covers future bookings as well as current ones
Download our Holiday Home Insurance Guide
You can download our handy guide to holiday home insurance by clicking on the link below.
If you would like to read more information and advice just click on this link Holiday Home Owners.
*Please note this information is offered as a guide only and does not constitute qualified financial advice. Gorgeous Cottages recommend you speak to an Insurer qualified to offer full advice on the subject of holiday home insurance before making any decisions on holiday home insurance.