MPs’ Second Home Insurance Claim Declined
Following the recent controversy surrounding MPs’ second home expenses, the importance of knowing what restrictions are included in your second home insurance policy was brought to light.
When MP Ruth Kelly billed taxpayers for water damage repairs following a burst pipe at her second home in Bolton, many questioned why she did not claim on her insurance policy.
Initially, it was reported that the MP didn’t file an insurance claim because furniture would not have been covered by her insurance as “it was about 30 years old”. Note – when insuring your second home contents, ensure that contents are insured on a new for old replacement basis.
However, it was reported by the Bolton News that…
Ms Kelly finally confirmed that the insurance policy she had on the second home did have a specific unoccupancy clause which meant she was not covered for the damage caused by the burst pipe.
This scenario reinforces the pitfalls of not understanding second home insurance unoccupancy clauses that can result in certain claims, such as water damage and theft being declined by insurers.
Second homes are constantly exposed to damage when they are unoccupied, so carefully check your insurance policy small print for unoccupancy exclusions that could leave you uninsured. It’s false economy to choose a cheap or unsuitable policy that doesn’t cover the specific requirements of second home owners – as unlike MPs, it will be the homeowner who will be left to pay the bill if uninsured.