5 Things You Need to Know About Holiday Let Insurance

We realise that protecting your holiday home is just as important as maximising your returns. That's why you need a good understanding about what the risks are and how you can protect yourself against them.

There are some common misconceptions about insuring holiday homes, and they can prove costly. Getting the wrong type of insurance can leave you without cover, footing the bill for remedial work to your property, or even paying the costs of legally defending a claim from a holidaymaker.

1. Does home insurance or buy-to-let insurance cover a holiday home?

This is the most important thing to remember: taking out home insurance or buy-to-let insurance will leave you without insurance cover on a holiday home.

Holiday home insurance, on the other hand, is specifically designed to cover the property for use as a holiday home on a short-term let, so should provide cover for your buildings and contents (subject to the terms of the policy).

Not only this, but holiday let insurance will also provide public liability cover as well as a variety of other types of cover depending on the policy taken out.

While it’s not a legal requirement to take out holiday home insurance, it is certainly recommended if you wish to protect your investment. Most mortgage advisors will encourage you to take out insurance on your holiday let to protect their investment.

With this in mind, if you choose to let your property out with a holiday let management company, it is contractal requirement.

2. It’s not just your property that needs insurance cover

In addition to buildings and contents cover, you will also need cover for:

• Accidental damage (to the buildings or contents)

• Flood, storm or fire damage

• Theft

• Escape of water

• Public and Employers’ liability

While most of the above are perils (or risks) in relation to your property, public and employers’ liability insurance is equally as important and needs to be included in your insurance cover.

Should there be an injury to a member of the public or damage to their property while in your holiday home as a result of your negligence – or equally to anybody you employ – then this insurance can be used to defend against claims. Claims can be expensive to defend, and successful claims can be very costly where compensation is required.

While public liability insurance is not required by law, employers’ liability insurance is a legal requirement for anybody with employees, with limited exceptions (such as family members). If you directly employ a cleaner, gardener or property maintenance person, for example, then you will need this cover.

3. Holiday Home Insurance covers a wide range of properties

Sykes owners now let property of all types, so the holiday home insurance you require has been designed to reflect this. You can arrange cover for cottages, caravans, flats and apartments, chalets, country homes and wooden lodges, to name a few.

There are other risk factors that are specific to holiday homes – wood burning stoves, swimming pools and hot tubs – all of which can be covered with holiday home insurance. In terms of risk, wood burning stoves in wooden lodges could prove a challenge to standard home insurers, but holiday home insurance will cover this for you!

4. What is loss of rent cover?

Loss of rent cover is a definite advantage to taking out holiday home insurance, as unexpected circumstances can lead to booking cancellations.

For example, if your property becomes damaged to the point where it is unsafe for guests to let, the loss of rent cover will help cover the losses from lack of bookings.

It’s an extra level of protection that is provided as standard as part of your holiday home insurance policy – though this type of cover can vary between insurers, so make sure you check with an adviser or check your policy wording to see what is covered.

5. Who does Holiday Home Insurance?

Holiday home cover varies from insurer to insurer, so you need to check your policy to ensure it offers what you need. The easiest and simplest way of getting the cover you seek is to consult with an experienced insurance broker, who can help to keep the costs of your insurance down by placing you with the right insurer for your circumstances.

Click here for Holiday Let Insurance from Pikl.

*Sykes Cottages Ltd is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346 who are authorised and regulated by the Financial Conduct Authority firm number 773457. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.