From taxes to income and bookings, there are many things that successful holiday let owners think about. Getting adequate insurance for your holiday let is another one of those issues, but it’s an often misunderstood subject that could potentially have a big impact on the value of your property and your income if something happened. In this article, specialist insurance company Pikl discuss their top ten holiday let insurance tips.
In the below video, Pikl gives us a brief overview of how much holiday let insurance costs:
Speak to your existing insurer
If you’re just starting on your holiday let journey and you already have existing insurance for your property, don’t assume that you have adequate cover. Typical home insurance policies don’t usually cover holiday lets and even some holiday let insurance policies may exclude issues such as theft and malicious (intentional) damage by a guest.
In the first instance, speak to your existing insurer and let them know that you are intending to use your property as a holiday let. It’s also important to check if there’s anything specific you won’t get covered for when renting out the property to guests.
Decide what you need to cover for
Insurance is just insurance…right? Well, kind of. Not all insurers provide the same cover and this will become especially apparent if you’ve already spoken to your insurer and found out that you have gaps in protection. Typical issues you may want to consider in terms of guest cover are:
Damages (accidental or intentional).
Theft whilst inside the property.
Loss of income.
Replacement locks.
Fire and escape of water damage.
Public liability.
Legal expenses cover.
The value of your property.
How often you’re allowed to host.
The number of potential guests at your property.
Write down a list of what is most important to you before shopping around for insurance. Clarifying if there are any potential cover restrictions will help you assess whether any quotes you are getting are value for money.
Shop around
Now that you know what kind of cover you need, it’s time to shop around. Each insurer prices things differently, so don’t just go with the first quote you find. Make sure you’re comparing like for like cover as well so that it’s a fair comparison. Comparison websites are an easy place to start, although make sure that you go to the insurer’s website to check the cover you’re getting.
Is your quote value for money?
It’s easy to be tempted by the cheapest quote you can find, but that may not give you the best deal. If you think you could live without certain aspects of cover, consider what the potential consequence of not having that could be. For example, if a guest damaged something in your property you knew you didn’t have insurance for, would you be better off financially if you had protection for that instead?
Think carefully about your property rebuild cost
The property rebuild cost is the estimated price of having to rebuild the entire property in the event of a claim. If you underestimate how much this is, you may not be covered for all damages. The Association of British Insurers recommends using either the Building Cost Information Service rebuild cost calculator or contacting a RICS qualified surveyor if you aren’t sure about this.
Get confirmation in writing
Not sure about whether the quote you’ve been given provides all the cover you need? There are lots of exclusions in insurer policy booklets and sometimes this can seem intimidating. Speak to your insurer if you aren’t sure about something. Get them to confirm their answer in writing or point to the relevant part of the policy booklet so you have something to refer back to if needed.
Speak to a specialist
When you have specific insurance needs, getting the right cover isn’t always straightforward. For convenience and peace of mind, it’s often easier to speak to a specialist in holiday lets. At Pikl, we’ve built cover from the ground up to protect holiday let owners and property sharers. If you’d like to get a quote with us, click here to get a quote today.
Watch out for hidden costs
Make sure that the excess that you are expected to pay in the event of a claim is acceptable to you. A high excess may bring the premium down but will impact your ability to claim for the smaller issues. Some insurers may also settle claims with a deduction for the age or the quality of the item at the time of the loss. Make sure you understand the implications of these terms before you make a decision on your insurer.
Trust the wisdom of the crowd
Customer reviews are popular for a reason. They can also give you invaluable insight into how good a company’s customer service is. The overall customer rating is important, but be sure to have a look at the general theme of reviews that most customers have written.
Can you contact your insurer easily?
Not all insurers provide customer service over the phone or make it easy for you to contact them. If a more in person phone service is important to you, think about this before purchasing your quote.
Our main takeaways for insurance for holiday lets
If there’s anything you take away from this article, the key elements of protecting your holiday let with insurance are as follows:
Establish what cover you need and your property rebuild cost.
Shop around for quotes and speak to a specialist in holiday lets if needed.
Pick an insurer that you think gives you the best value for money.
With these steps, you can protect your property and focus on other things such as getting more bookings and income. If you’d like to learn more tips and guides about hosting, holiday lets and more, head over to Pikl.
Need help with the next steps of your holiday letting journey?
If you're thinking of buying a holiday let or just need some advice, our property experts can help answer any queries you may have.
Pikl is an insurtech with a goal to protect those participating in the sharing economy. Many insurers do not fully cover the sharing of assets and many customers are unaware that they may not be properly insured.
Pikl is on a mission to make sure that customers participating in the sharing economy can access insurance products that meet their needs so they can share safely and confidently.
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.
Naomi Birritteri, Holiday Let Insurance
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