Tuesday, May 17, 2016

Does Your Landlord Insurance Cover Holiday Home Insurance?

Are you protected by the right backups? If you are an owner of a holiday home aka second home, must check to see whether your landlord insurance policies involve Holiday Home Insurance in it or not.

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Let’s find out what you should know before jumping to the conclusion:

What’s a Holiday Home Insurance Actually?

Holiday home insurance is a specially designed insurance policy for short-term rental contracts, which means the owners who want to rent their holiday home for less than three months.

What are the Basic Parts of This Insurance?

It comprises of two types of insurances: i) Building insurance – to protect you from damages caused by fire, storm, pipe burst etc. since it covers the structure of your property and ii) Content insurance – covers the belongings (furniture, clothes, and electronic items….) of your home.

Is it a Standard Landlord Insurance for You?

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In this context, ‘standard’ means what is best suited for you. Most of the landlord insurers tend to exclude the holiday home insurance from their policies because they consider it as a risk as the owners aren’t really there to take care of their property and there is a possibility that it remains unoccupied for a long time. Still, there is a ray of hope as policies vary from insurer to insurer. So look for the one who is providing your required policies.

Is Transparency a Big Deal?

YES! Your insurance may become invalid in case you hide the fact that you have used your property for holiday renting and your existing insurance policies would not mostly cover holiday lettings. Hence your insurer can accuse you of not being transparent with information regarding your property and inaction can cancel your home insurance for the rental property.

With all the information disclosed above, you are good to go for a suitable Holiday Home Insurance hunting.

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