Your standard home insurance policy will not cover any second homes or holiday homes you own. For appropriate protection, you will need a dedicated second home insurance policy.
In this post, we will outline how second home insurance works: Why you need it, what it covers, and how much it might cost. We will also briefly explore the differences between second home insurance and holiday let insurance.
Why You Need Second Home Insurance
Second homes and holiday lets will likely be left unoccupied for periods of time. There are multiple risks associated with leaving properties unoccupied for an extended period. The property may be vulnerable to break-ins and vandalism, for example. And if there is nobody around to look after the property, a small issue such as a burst pipe could eventually escalate into a disaster.
The problem is that standard home insurance policies will only cover occupied properties. The policy will not provide any cover if the property is left unoccupied for more than a specified period, which is usually between 30 and 60 days.
This is why you will need specialist insurance for any second homes or holiday lets in your portfolio. A dedicated policy can provide cover for the risks that come with leaving properties unoccupied for long periods. It can also provide additional liability cover should you choose to let your property to paying guests.
Second Home Insurance vs. Holiday Let Insurance – What Is The Difference?
Both second home insurance and holiday let insurance provide cover for periods when a property is unoccupied. The key difference is that holiday let insurance includes additional liability protection and cover for the risks associated with renting the property to paying guests or members of the public.
For example, if a guest injures themselves while staying at your property and alleges that you were responsible, your holiday let insurance may cover compensation you are legally required to pay, along with legal fees that may arise in the event of a dispute, subject to the policy’s terms, conditions, exclusions and limits
What Does Second Home Insurance Cover?
Second home and holiday let insurance can typically provide cover, subject to policy terms and conditions, exclusions and limits for losses or damage arising from:
- Forced entry, vandalism, and malicious damage
- Theft
- Escape of water
- Severe weather events, including flooding
- Subsidence
- Structural damage
- Property owners liability cover (for holiday lets)
How Much Is Second Home Insurance?
The cost of your second home or holiday let insurance will depend on a number of factors.
Holiday let or second home
Holiday let insurance will likely cost more than a standard second home insurance policy, due to the need for property owners liability cover on top of the other core areas of cover.
Location
The location of your property can make a difference. You may have to pay more for cover if your property is located in an area with relatively high crime rates, or somewhere with a particularly high risk of flooding. You may also have to pay more for cover if your property is located overseas.
Property size and value
The size and value of your property may affect the cost of any potential repairs following an incident such as a fire or a flood. You may also need additional contents cover if you keep any particularly valuable items in your second home or holiday let.
Get A Free Quote For Second Home Insurance Today
James Hallam is an independent Lloyd’s broker with extensive experience in helping individuals protect their assets. We will take the time to understand your property portfolio, before helping you access the specialist insurance solutions to meet your individual needs.