Do you need a holiday home insurance?

With many house owners now looking to acquire holiday homes as an investment as well as a place to get away for some rest and relaxation it is essential that we comprehend how to protect our vacation home.

When you have taken out a home loan to purchase your vacation home the lender will insist that standard Buildings Insurance coverage is set up. However don't let yourself be tempted to use a normal home insurance coverage for this purpose. An ordinary policy is not going to protect you if you rent out your house or if you are not residing in your holiday home for a long period of time. The insurer can invalidate your insurance plan in case you are seen to break these conditions.

What does holiday home insurance include?

As with your main residence you must cover your holiday home sticking with the same coverage over its structure and belongings. With universal home insurance - covering building and content, you'll get covered from burglary, loss or damage. Which basically indicates that it covers your electrical items and carpets, furniture, built ins and the framework of the residence.

From insurance providers point of view there's a greater risk of flood claims or theft if the property is left without residents, same apply when you are letting your holiday residence.

So as not to invalidate your home insurance plan, there are certain rules and regulations you have to comply, in case you are renting your property.

How much getaway house insurance protection do I need?

When assessing how much cover needed it is best to apply the same principles as arranging your home insurance.

You must be insured for the amount it will cost to completely rebuild your holiday home.

Whenever calculating an insurance value for your contents it is a good idea to make an inventory of items within your property. On the other hand is very bad idea to leave very own items and valuables inside your holiday house, in case you will not be there for a long period of time or you are likely to rent it out.

What additional holiday home protection should I have?

Excess cover which may be worth looking at for your holiday home;

Accidental Damage - If you're going on letting out your residence, you have to have this one. Your friends or guests are certainly not gonna be as careful as you are, consequently there is a greater risk of accidents and claims.
Public Liability Insurance - This will protect you for the death or injury to a 3rd party on your property.
Employee Liability Insurance - This is important if you will have people employed by you such as cleaners or home gardeners and will cover you from any accidents or injury they experience whilst on your house.
Personal Possessions Cover - Insurance can often be extended to pay for items that leave home along with you including laptops and mobile phones.
Loss of income - People often are likely to ignore this kind of cover. Loss of income policy would cover you've got a water leak, such as, which will make your home uninhabitable. You could possibly lose 1000s of dollars unless you rent out your holiday residence throughout the peak season because of unforeseen circumstances.

As with all insurance policies it is wise to read the small print to find out what exactly is covered and what is ignored. Many insurance policies covering holiday houses insist on things such as the heating system being drained when left empty. This might pose a serious inconvenience for many owners.