Comprehensive Buildings and Contents Insurance For Holiday Homes
Buying a holiday home can be an exciting luxury. New places to see and do. A different climate. Sun, sea and sand. You can soon float away on the romance of it all… Insurance can be a word you don’t want to hear in the same sentence, but you wouldn’t want anything to happen to your investment or for your property to flood or burn without some cover.
Why is it Different From Standard Home Insurance?
Holiday home insurance or second home insurance needs to be more comprehensive than your cover for your main home. It is not something that insurers cover as ‘standard,’ as it is considered riskier because of the long periods the property is unoccupied. As well as that, if it is let, other tenants might not take as good care with it as you do. Even if you only rented it out to friends and family and told them that they were responsible for any damage during their stay, if something were to happen, they could simply refuse to cough up or might not have the money for it. A family dispute is the last thing you want.
Contents insurance might be something to think about, though not leaving expensive items like jewellery or ipods inside the property when you leave to go back to your main home is always a good idea too and should lower the cost of contents insurance. A property is more likely to be burgled if it is unoccupied.
Do I Need Buildings Insurance?
If you intend to have a mortgage on a second home, most lenders will ask if you have buildings insurance and will want you to take out a sufficient policy before they let you take out a mortgage with them. But even if you were able to buy your house upfront, or now own full deeds to the house, buildings insurance might still be something to weigh up. Can you afford to rebuild your holiday home in the event it is destroyed? Any building insurance policy should cover the cost of rebuilding your home and an insurer should tell you how much this is.
What Could Happen to My Second Home?
One of the most frequent things to happen is a water pipe bursting and flooding a house. If a property remains unoccupied during an ice-snap, then there is no one to change the heating of the house or stop the pipes from freezing and bursting the next time the water is used. This is less of the case if the climate is temperate all year through. However, if it is hot, a property could equally be destroyed by bush fires.
Any number of things could happen to your property in your absence. Some insurers may not even want to cover your property if it is within an area prone to earthquakes or other natural disasters. But so long as it is possible, home insurance is still something to bear in mind as it should help you to rebuild or restore your property so you can enjoy it once again.
Home Insurance Quotes and is Cheap Foreign Cover Worth it?
Insurance may be more expensive for properties abroad than in the UK, depending on the location. If the property is abroad, some people are tempted to buy cheaper insurance from the same country and while that sounds like a good idea, it can be much harder when things go wrong. Unless you have a very fluent grasp of that language, when you need to make a claim, it can be very challenging understanding what is going on. If you thought insurance policies of the UK were tricky to navigate, try throwing in the difficulty of a language barrier. It just isn’t worth it.
There are lots of other insurances you can take out on your second home, but comprehensive buildings insurance and contents insurance are the two most popular. If you do consider insurance, look carefully for what each policy covers and their quotes check online http://www.axainsurance.com for example. If you have extras like garages or swimming pools, you might have to take out additional insurance if you want to cover any damage to them too.