If you have built or purchased an exclusive holiday home in the UK but do not visit it on a continuous basis then renting it out for the rest of the time makes good financial sense. However, you should make it a point to get specific cover for your holiday home whilst insuring your holiday home so that all your earnings are not snatched away from you in one unfortunate incident or accident.
A holiday home requires different types of cover as compared to a regular home insuring policy. You will require adequate building cover insurance to be included in your policy. This should include your holiday building as well as any outhouse or garage that you might have on your property. Your building should be specifically insured for fire, flood, earthquake, storm and various other types of natural and intentional damage by nature or by your tenants.
Another cover that your holiday home should have is property owner liability insurance. This aspect will cover you in case your tenants are injured or die on your property due to any accident. You could be sued in such a case and this protection is crucial if you plan to rent out your property. In addition you should also go in for employer's liability since your holiday dwelling will surely require regular maintenance. This could be provided by a plumber, an electrician, a gardener, etc. that will need to be insured in cased they suffer a mishap while tending to your property.
Again, along with your building insurance you should also go in for contents cover. This would include your refrigerator, TV, kitchen appliances, furniture, bathroom appliances, music systems, etc. that might need to be installed for your own and your tenants conveniences. Any contents in your garden shed or outhouse should also be included in your policy. You should opt for the old-for-new option when insuring the contents. Although the premium will be higher, you will receive a new product or equivalent value in case your old and used product is damaged beyond repair.
If you are seriously planning to rent out your holiday home then you should also include a rental loss clause in your policy. Thus in case your property is badly damaged by flood, earthquake or any other disaster then the insuring company can cover any rental loss until your property is restored back to its original state, which in some cases could take more than a year. In addition to these vital tips, you should also ensure that you get at least 4 quotes from reputed insurance providers to increase your options. You should carefully look at inclusions and even exclusions in the proposed holiday home insurance policy before making up your mind. You should ensure that you do not look only for cheap premiums but instead pay heed to the reputation of the insurer as well as choose one that offers better cover under one policy.
A holiday home in the UK could be a wonderful oasis of relaxation but could also turn into a painful mirage in case you do not have adequate cover. It is extremely important to cover all aspects in your holiday home insurance policy so that you can relax without any worries while relaxing in your holiday home and even relax when your tenants are doing the same.
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