If you own a Holiday Let Property or are thinking of letting your property to holidaymakers for the first time, you need to make sure that you have adequate insurance protection.
Very few standard home insurance policies would be able to adapt to cover holiday letting, so a specialist insurer offering holiday let insurance is strongly recommended.
There are a range of policies available through Insurance Brokers or via the internet offering varying premiums and cover solutions. Whilst a standard home insurance would usually cover reinstatement or replacement of the Buildings or Contents, in respect of Holiday Let Property Insurance the following are also vitally important:-
Public Liability – to cover your legal liability following an accident or injury to Guests or visiting members of the Public – usually up to £2 million or £5 million limit of indemnity.
Remember to advise your insurer of any leisure facilities available to guests, ie swimming pool, hot tub and even garden play equipment, trampolines and the like
Employers Liability – cover to protect your legal liability following accident or injury to members of staff, ie cleaners, gardeners or maintenance staff
Business Interruption – Loss of Rental income and additional costs in the event of damage to the property following an insured peril – ie fire, flood, storm damage etc. Certain policies will also cover the following useful extensions:
- Failure of Public Utilities
- Prevention of Access
- Pollution of Beaches
- Breakdown of Equipment, ie Boilers
Commercial Legal Protection Insurance – to provide cover for legal costs and expenses in certain circumstances including Employment Disputes, Contract Disputes, Debt Recovery, Property Protection and Tax Investigations
Equipment Breakdown cover – cover for the repair and/or replacement of key equipment including Boilers, swimming pool plant, air conditioning etc
Full theft cover & Accidental Damage – some policies will only provide ‘theft following forcible or violent entry’ to the premises, ie theft by guest is not covered so it is important the check that the policy covers ‘full theft’. Accidental damage cover is also strongly recommended
When seeking insurance, you should particularly check the following policy requirements:-
Minimum Security – does the insurance require particular locks or even an intruder alarm?
Inspection Warranty – will the property need to be inspected at regular intervals when not occupied, ie weekly or fortnightly?
Winter Warranty – will the heating need to be left on at a set level, or systems drained in the event of unoccupancy during the winter months?
It is very important that you are aware of the policy conditions and warranties applicable as failure to comply could prejudice your insurance cover in the event of a claim or even result in your policy being cancelled
The sums insured should be based upon the cost of rebuilding the property, including such costs for removal or debris and architects fees and in respect of the contents the sum insured is based upon replacing the contents ‘as new’
It is imperative that these figures are correct, as most policies will contain an ‘average’ clause. This means that in the event of underinsurance, any claim settlement could be reduced by the amount of underinsurance
Some insurers will offer a premium reduction for an increased policy excess of say £250 or even £500, so this is worth considering as cost saving factor.
 Melanie Birchell Cert CIII am a Director of Pavey Group Insurance Brokers, responsible for our ‘Leisuresure’ Department which specialises in Tourism and Leisure Insurance. We have operated an exclusive scheme for Holiday Property Insurance for over ten years, known as ‘Cottagesure’. Tel. 0800 5335600 E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Website: www.cottagesure.co.uk |
