If you are considering buying a second property as a future investment, it is worthwhile considering let your property as a holiday home or holiday let. When it comes time to decide which holiday home insurance to choose, there are a few things that you should consider. Maintenance is also a big issue. Naturally, if you rent out your home, there is an increased chance of breakages and general wear and tear will be higher.
If you own a holiday property then you must give the type of insurance you buy a lot of consideration. Holiday let insurance is similar to a standard residential buildings and contents policy, it protects not only the building itself but the goods and chattels within it. It differs from the standard residential policy is in the fact that you are also covered for loss and damage at those times that your vacation property is let to a client.
The major difference between a holiday home insurance policy and the standard buildings and contents policy is the fact that a holiday let insurance product will have a schedule in place to cover you for loss of earnings, if your vacation property becomes too badly damaged to be rented to visitors. If the property is just going to be used as a holiday home then this is classed as important and affects your policy because there will be times when it will stand empty.
Aside from getting a comprehensive holiday home insurance coverage on your building and it contents, you should also get an insurance coverage against liabilities. Liability insurance is especially important if you plan to rent your vacation home during times when you do not need it. Note that under the law, the owner of the property can be held liable if a guest gets injured while staying at the property. Since claims for damages can be very expensive, it is very important indeed that property owners get liability insurance.
Your holiday property is not merely an asset, it is also an income stream, it is vitally important that you protect this source of revenue at all times, both as a tangible asset and a source of income, by availing yourself of holiday home insurance you will have taken an excellent first step in making sure that not only your investment, but your income is safeguarded against loss or damage to your vacation property.
David Ball has many years experience advising on holiday home insurance, with his breadth of knowledge his organisation is a leader in the holiday home insurance field.
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