Home Owner Insurance – Why You Need It and Don't

Author: Sean Horton
Source: ezinearticles.com

Protecting your holiday home against the worst case scenario should be considered essential. However you have to realise that second home insurance is specialist cover and should never be tempted just to take a regular home insurance policy to protect it. Always look for an insurance policy tailored specifically for second homes or holiday homes. A specialist broker can help you access some good deals.

Considerations when getting cover

The major consideration is how much buildings cover you will need ie the amount it would cost to rebuild your second home if the worst case scenario should happen and you lost everything in the home and the building itself due to fire. You would also need to take into account how much it would cost to remove the rubble in order to rebuild. Therefore, getting a professional valuation can help you get the right sum insured.

When looking for second home insurance it is essential that you check out the terms of the policy as they can differ greatly with providers. For example there could be some restrictions set in the cover when it comes to letting or during the times when the property would be unoccupied.

Usually insurance for your holiday home would cover all the standard features to be found in contents and buildings insurance. Fire, theft, subsidence, flood damage and damage due to vandalism are all usually included. However it can also include so much more.

You could check the terms to find out if the policy provides cover against accidental damage for both the building and the contents. Accidental damage is a particularly important feature of your cover when you are letting the property out.

You may find it useful to take photographs of the items within the property, as well as any serial numbers, to make it easier in the event of a claim.

Also check out the exclusions, which may also include any limits on payouts for a single item.

Liability and legal expenses cover

Personal liability and legal expenses could also be found in a holiday home insurance policy and this would pay out if the guests in your holiday home were injured while staying in the property.

Check out any policy you are considering taking out to see if it would protect you against a loss of rental income. If for example, disaster struck and your home was ruined by fire or flood, it could take many months for it to be rebuilt or repaired. During this time you would of course have nothing to rent out and could suffer a great loss of income. The majority of second home insurance policies will pay out up to a certain amount during circumstances such as this.

Finally, when considering holiday home insurance it is important that you get the right cover and at the best price. By using a specialist second home insurance broker you can have access to policies tailor made for people with second homes, meaning you get comprehensive protection along with good advice. Your second home is probably one of your biggest assets, so make sure you protect it properly.

Sean Horton is a Director of Holiday Let Mortgages which offers UK residents the finance to buy a UK based holiday home. We also offer a range of second home insurance