Holiday Home Insurance - 31 Aug 2009 08:23
Owning a holiday home has its perks, but also means two home insurance policies and probably two contents insurance policies. Although you remain the same financial risk to your insurer for both homes, your premiums may be different as a result of the unique characteristics of your second home. These characteristics influence your policy and should be considered when applying for cover.
Home insurance policies cover the basics such as fire and water damage, and storms. Depending on where your holiday home is located you may want to check the subsidence cover as well to protect you from landslides or soil erosion damage.
While you may have family or friends staying there at parts during the year or lease it out to holiday-makers, you must tell your insurer if there is no one living there permanently. Permanent residence, according to insurance policies, means the home is never vacant for more than three months a year.
Your first home insurance policy includes Public Liability Insurance, but is probably absent from your second home cover. Public liability is absent when you rent out your home but is important cover to get if you have tenants or holiday-makers staying in the home, to protect you from claims made by third parties. Check with your insurer whether they consider tenants’ damage to your property as accidental and insure accordingly.
What if your holiday home is overseas? Contrary to popular belief you don’t have to insure through a local insurer in that country. Through a broker you can arrange specialist holiday home insurance with a South African insurance company. Then, at least, the contract will be in English.
Owning a holiday home has its perks, but also means two home insurance policies and probably two contents insurance policies. Although you remain the same financial risk to your insurer for both homes, your premiums may be different as a result of the unique characteristics of your second home. These characteristics influence your policy and should be considered when applying for cover.
Home insurance policies cover the basics such as fire and water damage, and storms. Depending on where your holiday home is located you may want to check the subsidence cover as well to protect you from landslides or soil erosion damage.
While you may have family or friends staying there at parts during the year or lease it out to holiday-makers, you must tell your insurer if there is no one living there permanently. Permanent residence, according to insurance policies, means the home is never vacant for more than three months a year.
Your first home insurance policy includes Public Liability Insurance, but is probably absent from your second home cover. Public liability is absent when you rent out your home but is important cover to get if you have tenants or holiday-makers staying in the home, to protect you from claims made by third parties. Check with your insurer whether they consider tenants’ damage to your property as accidental and insure accordingly.
What if your holiday home is overseas? Contrary to popular belief you don’t have to insure through a local insurer in that country. Through a broker you can arrange specialist holiday home insurance with a South African insurance company. Then, at least, the contract will be in English.