Holiday let insurance can be one of the most important and sensible purchases you can make if you are looking to protect your investment in your holiday home from the unexpected.
Holiday let insurance provides peace of mind for those who rent out their holiday property; allowing them peace of mind while welcoming new paying guests into the home.
However, it is important to understand the importance of holiday let insurance; as well as knowing how to get the cheapest insurance possible. Here we will look at the 5 most important facts you need to know about holiday let insurance…
No-one wants to think about anything happening to their holiday let during the holiday period, but unfortunately something will. While some owners will take the time and effort to ensure that they have taken all the precautions to avoid problems such as flooding, others won’t be so careful.
Whilst flooding can be a horrible inconvenience, it is fortunately not too common with holiday let owners. If you find yourself renting in an area affected by flooding you will need to consider what level of flooding you would be vulnerable to, and whether or not you would be able to repair the damage yourself, should it occur. It may therefore be worth considering additional cover to protect your holiday let property.
You may think that contents insurance and buildings insurance are an essential when it comes to covering your property, but in fact it is completely separate products. Buildings insurance protects the building and your belongings within it, while contents insurance only protects your belongings if they are damaged.
The contents insurance, you should take out to your buildings insurance should ideally complement it. As you would take out contents with your life insurance, it makes sense to opt for a policy that includes it.
Buildings insurance covers the shell of your home and protects you financially if it is damaged or destroyed due to fire, flooding, vandalism or storm damage. So say if your roof were damaged by a storm, for example, and you needed to get it repaired by a company like Northface Construction, then this would be covered.
Contents insurance covers items in the home that are completely and permanently attached to it such as furniture, electrical goods, clothing and other fittings. It is cheaper to take both types of insurance, as it makes sense to replace everything in your home if it is damaged or stolen.
There are a few things that are specifically targeted at holiday let insurance buyers, namely the risk of accidental damage or destruction to the property.
If you have rented your holiday accommodation out, then you should check the insurance policies that come with it to ensure that it covers your belongings. It is a good idea to take an inventory of your belongings before you leave, to make sure you don’t forget anything.
Most insurers will ask you to do this, as part of a standard inspection of your holiday let property. If you forget anything, you will want to find out its value immediately, or you could risk paying out money on compensation claims.
Your holiday property should come with a tenancy agreement or lease document. These are important documents for any letting agent or landlord. They form the legal basis of your relationship with your let landlord.
Many people make the mistake of thinking that they are fully protected by their policy or that they have nothing to worry about, but they are wrong. Your contents and your possessions may be individually covered by separate insurance policies from your provider.
When renting your holiday property, you should make sure you understand what type of coverage is included in your contract and for how much. You may be able to add additional cover during the term of your contract, but you should always be aware of how much these policies will cost you. Insurance providers offer different packages for those renting holiday let homes.
Some offer insurance for damage, theft and loss, while others only protect against damage to the structure. There are also different levels of protection, with some allowing you to recover rental costs for any unoccupied property.
You should check the small print of your holiday let insurance contract very carefully to ensure that your policy meets all your needs.
This is because any changes to your holiday property, such as additions or extensions, could result in increased premiums. This is why it is essential that you know exactly what your policy provides cover for, as well as the price and type of premium payable.
You should also consider asking your broker or insurance provider for advice and information on affordable holiday home insurance.