If you are considering buying a second property as a future investment, it is worthwhile considering let your property as a holiday home or holiday let. When it comes to taking out holiday home insurance then you will have to give it some serious consideration, holiday home insurance is one of the biggest factors and you would be very wise to make sure that you secure adequate insurance for you holiday home.
If the property will stand empty for a lot of time as you will be using it as a second or holiday home, then the insurer will need to know for how long and how often this is likely to be. However, if you intend to use the property as a holiday let, then you will need a different type of insurance – landlord insurance. Landlords insurance is used where people have buy-to-let properties and, as more people invest in properties to let, the need for this type of insurance is growing.
If you let guests stay at your home for the holidays, you will need insurance that covers your home in the event of an accident or damage caused by guests. When it comes to taking out holiday home insurance then it is essential that you tell the insurer that the property is intended as a holiday home and that you will be letting it. There are companies who specialize in commercial insurance. They have different policies designed specially for rental home owners.
The biggest reason why it costs more to insure a second home is the fact that you are not residing in it and as such for a large part of the time it is standing empty, which means there is more chance of it getting broken into. Before you buy a holiday home insurance, you need to take an inventory of the things that you want to be covered by the policy. A comprehensive insurance policy should be able to protect your building and the contents of that building.
Your holiday property is not merely an asset, it is also an income stream, it is vitally important that you protect this source of revenue at all times, both as a tangible asset and a source of income, by availing yourself of holiday home insurance you will have taken an excellent first step in making sure that not only your investment, but your income is safeguarded against loss or damage to your vacation property.
David Ball has many years experience advising on holiday home insurance, with his breadth of knowledge his organisation is a leader in the holiday home insurance field.
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