Archive for Holiday Home Insurance
Posted on 01/09/10, filed under Holiday Home Insurance | No Comments
If you have a holiday home sometimes even your best intentions can cause you grief.
 Discovery of old friends
A recent survey highlighted that a very high percentage of second home owners have been subjected by family or friends to a request (directly or more subtly) for a free or cheap holiday. No-doubt the credit crunch, weak pound and ‘staycation’ trend are all contributing factors.
Just about anyone that owns a holiday rental will, at some time or another, have suddenly found they have friends and even family coming out of the woodwork. It can be amazing how quickly the conversation will be steered around to that holiday property they’ve just heard you have… read the rest of “Risks when renting your holiday home to friends” >>
Posted on 18/08/10, filed under Holiday Home Insurance | No Comments
Unless you inherited it, your second home probably cost you a considerable sum of money. As such, it’s a major asset and protecting it with appropriate second home insurance is simply common sense.
 Second homes and risk
If you don’t immediately accept the logic of that, you may wish to think for a second about the risks that could turn your dream home into a nightmare.
You probably wouldn’t think about leaving your primary residence or its contents uninsured. There are no obvious reason to believe that your second home is immune from many of the risks your primary property faces. So why do many second home owners take a laid back approach when… read the rest of “Is your second home really ‘fully insured’?” >>
Posted on 27/07/10, filed under Holiday Home Insurance | No Comments
The Summer holidays are upon us and it’s a time when many of you will be off to visit your holiday homes or managing hectic changeovers at your holiday rental.
Although it’s likely that holiday home insurance won’t be a foremost concern during this period, it’s essential that you are aware of some areas which may leave you at risk.
 Our experience at Schofields is that unfortunately during the summer months, theft and burglaries increase at holiday homes – as both home owners and holiday makers arrive with an array of expensive gadgets, jewellery and money.
Although many of us have a perception that the idyllic rural locations where our holiday homes are located are virtually… read the rest of “Theft & burglary questions to ask your holiday home insurer” >>
Posted on 20/07/10, filed under Holiday Home Insurance | No Comments
The government’s recent decision in the emergency budget to raise the lower rate of IPT (insurance premium tax) by 1% to 6% from 4th January 2011 has caused more than a few raised eyebrows in the insurance industry. Some professionals are concerned about the effect this may have on people taking out home insurance, considering it’s estimated that 1 in 4 households already forgo contents insurance.
 The deficit
Given the current national deficit, comparatively few people seem to be questioning the need for some forms of belt-tightening going forward or that the government needs to raise more income.
However, some are pointing out that insurance increases must be seen in the context of VAT also… read the rest of “Home insurance concerns following IPT rise” >>
Posted on 22/06/10, filed under Holiday Home Insurance | No Comments
With many types of insurance, including holiday homes cover, there is typically a period of 14 days during which you can cancel the policy if you change your mind.
This so called “cooling off period” was introduced by the Financial Services Authority (FSA) – which is the body that regulates the insurance industry in the UK.
 It protects people who may have been pressurised into buying insurance products that they really didn’t want or those that may have made an error in terms of the policy they’ve selected.
These days, although pressure selling is hopefully less common, it is perfectly possible to still use this cooling off period to consider your deal and to reassure yourself that… read the rest of “How to cancel your home insurance policy ” >>
Posted on 15/06/10, filed under Holiday Home Insurance | No Comments
When you first bought your holiday home, you may not have intended that it would make you into an employer too. It might though – and you may have to take account of this when arranging your holiday cottage insurance cover.
 The reason for this is simple. If you employ someone to, say:
- mow the lawns and maintain the property;
- be available to handle any queries at your property from the people you rent to;
then you may be legally employing them. That applies to any situation where you are hiring them to carry out tasks for you at your request and have a contract of service… read the rest of “Employers liability insurance for holiday homes” >>
Posted on 25/05/10, filed under Holiday Home Insurance | No Comments
With soaring temperatures over the last week, there are signs that the ‘barbecue summer’ that was predicted over the last 3 years (but never materialised) could actually happen this year.
 Combined with a surge in UK holiday bookings due to the ash cloud chaos and the weak Euro, UK holiday let owners are set to have a record year.
However, holiday home owners are advised not to neglect their holiday cottage insurance obligations during soaring temperatures. Cottage owners could risk invalidating their cottage insurance by leaving windows or doors open during hot spells.
By leaving windows and doors wide open, holiday home owners are offering an open invitation to opportunistic thieves. Many insurance policies do… read the rest of “Do open windows invalidate holiday cottage insurance?” >>
Posted on 06/05/10, filed under Holiday Home Insurance | No Comments
There are reports that the home insurance market is set to change, as insurers reconsider their exposure following the floods and big freezes that have hit the UK since summer 2007.
The knock on effect of this is that insurers are expected to increase premiums, excesses or refuse cover for high risk properties.
The home insurance market
The problem is that household rates haven’t increased in relation to the sharp increase in property damage claims caused by flash floods, storms and freezes.
- According to the ABI, the coldest winter in 30 years cost insurers £650m for weather related losses – such as the Cockermouth floods in November
- The AA, which
Posted on 22/04/10, filed under Holiday Home Insurance | No Comments
In the increasingly competitive market of holiday letting, holiday home owners are kitting out their properties to a high standard, with quality furniture and all the latest gadgets- in an attempt to be unique.
However, this often means that holiday home contents insurance sums insured are underestimated, because owners fail to take a proper inventory of their valuables.
It’s estimated that contents are underinsured by as much as 30%. The effects of underinsurance means you could be caught short if the worst happens, particularly with a ‘total loss’ e.g. a fire. Therefore, it’s important that you insure holiday home contents for the full replacement value, so that you are adequately reimbursed following theft, damage or loss.
Here’s how…
Posted on 15/04/10, filed under Holiday Home Insurance | No Comments
We constantly stress the importance that property owners ensure they choose second home insurance that gives maximum cover with minimal exclusions, rather than deciding based on price.
However, it is essential that the holiday home buildings sum insured you declare is accurate, to avoid claim payments being reduced because of under-insurance.
Your holiday home buildings sum insured should represent the amount that it would cost to rebuild your home if it burnt to the ground or was destroyed by an earthquake for example. The rebuild amount should include the cost of removing debris, architects and surveyors fees.
It’s important that you only insure for the rebuild value, not the market value (how much you would get if… read the rest of “How to calculate buildings insurance rebuild cost” >>
Posted on 30/03/10, filed under Holiday Home Insurance | 2 Comments
Whether you take out holiday home contents insurance is an entirely personal choice. However, not insuring your contents could well be a false economy. In the event of a major disaster, such as your home being flooded, would you be able to pay to replace your contents?
In order to appreciate what should be covered by second home contents insurance, you must understand what is meant by the contents of your home.
What are contents? It is probably best to think of contents as being everything you would take with you if you moved house. This typically includes furniture, household goods, electrical equipment, curtains, plus items kept in the garden, garage or outbuildings.
The industry… read the rest of “What does holiday home contents insurance cover?” >>
Posted on 26/03/10, filed under Holiday Home Insurance | 2 Comments
Insurance explained – is it ‘buildings’ or ‘contents’?
It’s important that property owners understand what holiday home buildings insurance actually covers, as many are confused as to what items are buildings and what are contents. This confusion can lead to claims disputes and holiday homes being underinsured.
If you have a mortgage on your property, the lender will insist you take out buildings insurance. Otherwise, buildings insurance is not compulsory, but it’s a huge risk to be uninsured.
Buildings insurance covers the structure of the building (walls, windows, roof) plus permanent ‘fixtures and fittings’ such as bathroom suites, toilets, fitted kitchens/wardrobes. The definition of buildings usually includes domestic outbuildings, garages, fixed fuel… read the rest of “What does holiday home buildings insurance cover?” >>
Posted on 23/03/10, filed under Holiday Home Insurance | No Comments
Due to the fact that one of the main causes of damage in holiday homes is from the escape of water, we get lots of calls from holiday home owners asking if the cost of repairing a leaking pipe is covered under their holiday home policy.
 It’s important to point out that insurance for holiday homes is not a maintenance contract and will not pay for damage caused by wear and tear or any other gradually operating cause.
Although we cover water damage from the “escape of water” – fixing a leaking pipe that has deteriorated through wear and tear is a maintenance issue and isn’t covered. This rule applies to most home insurance policies.
However, we… read the rest of “Does insurance cover burst pipe repairs?” >>
Posted on 22/12/09, filed under Holiday Home Insurance | No Comments
Yet again, heavy snow and sub-zero temperatures are causing chaos across the UK, Spain, France and Europe. As temperatures plummet, holiday homes and cottages are particularly vulnerable to water damage caused by burst pipes – especially those which are left empty.
The cold snap last winter resulted in a sharp increase in holiday home insurance claims for water damage, which not only caused significant damage but also emotional trauma. According to AXA, there was a 60% rise in claims last winter compared to the previous year and the average burst pipe claim was £15,000.
With Britain facing one of the coldest winters in 100 years, water damage claims from burst pipes are expected to increase yet again this winter.
Posted on 15/12/09, filed under Holiday Home Insurance | 3 Comments
It seems everyone is trying to cut costs when it comes to insurance. However, for the sake of saving a few pounds off their premiums, homeowners could find themselves seriously out of pocket if something untoward happens… by not having adequate insurance.
I have found a cheaper quote, can you match it? is a question insurers face on a daily basis. But you should ask yourself – why is the quote cheaper?
Is the cover the same? If the cheaper quote includes an array of exclusions and limitations then this is likely to be reflected in the price. As with third party motor insurance, for complete peace of mind you need fully comprehensive cover.
Saving a few pounds is no use if that saving is achieved by… read the rest of “Why cheap holiday home insurance is pointless” >>
Posted on 11/12/09, filed under Holiday Home Insurance | No Comments
 While scaling back your insurance may seem a good way of saving a few pounds on your premium, buying cheap holiday home insurance based on price alone is false economy if you are reducing cover.
There are legitimate ways of reducing your insurance premium without cutting cover. Here are our tips…
Increase your excess
Most policies include an excess charge, which is the amount the insurer deducts from a claim. If you opt to pay a higher excess (e.g. £100 or £200 rather than the standard £50) this can significantly reduce the cost of second home insurance.
You should bear in mind that you will have to pay more when you do… read the rest of “How to cut second home insurance costs” >>
Posted on 12/11/09, filed under Holiday Home Insurance | No Comments
Many tourist destinations in the UK have a limited letting season which means winter bookings may be difficult to achieve, or you may have to offer heavy discounts to entice bookings.
Rather than let for low returns or leave their holiday cottage standing empty during the winter, many of our holiday rental owners switch from short term holiday letting to long term cottage rentals in the winter months. This means cottages won’t be left empty for prolonged periods and owners receive a steady income.
Our holiday homes insurance can accommodate owners who wish to change to long term holiday lets. All you have to do is notify us and we will change cover to our let property insurance. The cover is the same, except we exclude… read the rest of “Changing to Long Term Holiday Lets in Winter” >>
Posted on 22/10/09, filed under Holiday Home Insurance | No Comments
With the number of people lying on insurance applications in an attempt to get a cheaper quote increasing, the implications of doing so and non-disclosure of a material fact, can result in an insurance policy being invalidated.
This was recently highlighted when a major insurer demanded a customer return a £241,000 settlement they received after their home was burned down in an arson attack. Why? Because the insured apparently failed to declare a £150 fine for a benefits offence.
Following this decision, there are concerns that thousands of people could be paying for worthless holiday home insurance because they are invalidating their cover by not disclosing material facts to their insurers.
What should you disclose?
Posted on 15/10/09, filed under Holiday Home Insurance | No Comments
Due to the number of Britons taking a ’staycation’ increasing (more than 12 million British holiday makers took a summer break in the UK this year, a rise of 14 per cent in the first six months compared with 2008) holiday lodge and log cabin sales in the UK are booming.
A far cry from traditional static caravan accommodation, holiday lodges are popular because they offer hi-tech gizmos combined with idyllic locations and good rental income.
But as most owners shut up their lodges for winter due to sites closing down, there is a hidden danger that could wreak havoc in their absence. Burst pipes!
The increasing threat of pipes freezing and bursting at holiday lodges
Posted on 14/09/09, filed under Holiday Home Insurance | No Comments
Following on from our last post, which discussed the importance of ensuring that your holiday let insurance provides loss of rental income so you can refund guests, there is also the issue of alternative accommodation following a claim.
 Similar to the loss or rent scenario discussed, a comprehensive letting policy should also provide the owner with alternative accommodation in the event that the holiday home becomes uninhabitable (whilst staying there) following loss or damage by an insured peril.
This cover should provide alternative accommodation in a holiday home or hotel of comparable standard, if you and your family are forced to leave your property whilst staying there.
It’s important to check with your insurer any policy limits and what… read the rest of “Alternative Accommodation Following a Claim” >>
Posted on 28/08/09, filed under Holiday Home Insurance | 1 Comment
Managing holiday lets can be challenging, especially when it comes to getting keys to holiday rental guests, cleaners or maintenance staff. If you are not on-site to meet your guests on arrival, then you need to have a foolproof way of ensuring guests receive keys to your holiday home.
One of the most popular methods is to use a lockable keysafe to store keys. These are usually mounted on an exterior wall near to the door. Keysafes can also be useful when guests arrive late in the evening or early.
 Other ways to send keys to holidaymakers include – posting them, leaving a key under a mat, hidden under rocks or in plant pots.
But holiday rental owners… read the rest of “Are You Covered For Theft?” >>
Posted on 10/08/09, filed under Holiday Home Insurance | 1 Comment
Following on from our last post on checking holiday home security requirements in case of burglary, there is also the issue of whether valuables are covered by holiday homes insurance.
 Burglars are twice as likely to break into a holiday property when it is occupied, as owners and holidaymakers arrive with cash, jewellery and an array of electronic devices such as phones, laptops and ipods. The majority of burglaries are opportunistic, as thieves take advantage of people in ‘holiday mode’ who leave doors unlocked and windows open whilst at the pool or beach.
Valuables are unlikely to be insured
Unlike main residences, holiday homes do not usually contain a lot of valuables, as they are… read the rest of “Insuring Valuables In Holiday Homes” >>
Posted on 05/08/09, filed under Holiday Home Insurance | 1 Comment
The summer holiday season is in full swing and thousands of second home owners and holidaymakers are relaxing in holiday cottages and villas in Europe. Unfortunately, during the summer months holiday homes filled with electric gadgets and holiday money attract burglars, as people in ‘holiday mode’ leave windows open and doors unlocked.
 That’s why I have insurance you say, but home owners could find themselves thousands of pounds out of pocket following a burglary. Why? By invalidating their holiday home insurance due to leaving windows open or having the wrong type of locks.
Security conditions – your claim is being declined because…
It’s important that you are aware of what you have agreed to when taking… read the rest of “Holiday Home Summer Burglary Reminder” >>
Posted on 16/06/09, filed under Holiday Home Insurance | No Comments
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… read the rest of “MPs' Second Home Insurance Claim Declined” >>
Posted on 01/05/09, filed under Holiday Home Insurance | No Comments
As the evenings get lighter and the economic downturn deepens, credit crunch crime is expected to rise. Second homes that are left empty for long periods or let, are especially vulnerable to burglary and theft.
 Holiday homes generally don’t contain a lot of valuables, mainly it’s electrical items that are stolen. Often, the damage caused by gaining entry into property by damaging door locks, grilles or shutters can be greater than the value of the items stolen. Regardless of this, it sensible to check that your buildings and contents insurance is adequately protecting your property from any loss or damage.
Are you insured?
Outdoor items
As the warmer weather approaches, it is likely that your holiday home, especially… read the rest of “Holiday Home Burglary Risk” >>
Posted on 01/04/09, filed under Holiday Home Insurance | No Comments
Holiday Homes Damaged By Burst Water Pipes Following Big Freeze
Throughout January and February, thousands of holiday homes across the UK and Europe were wrecked by water pouring through ceilings and floors for days. The water damage follows burst water pipes as a result of some of the coldest winter weather in decades.
- Much of southern England and Wales experienced lows of -10C
- In Aviemore, the temperature dropped to -18C, which the Met Office said was the lowest temperature since January 2003
- In Portugal temperatures dropped as low as -7°C in some regions, which were placed on a yellow weather alert
- More than a million homes were left without power as
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