Top tips: getting insurance for your holiday home

Holiday homes are often a place to escape to for some rest and relaxation. But for the weeks and months you are not at your property, protecting it with the right insurance cover is vital.

Many insurers do not cover holiday homes as standard because they are often left empty for long periods, increasing the risk of theft, burst pipes and leaks going unnoticed for longer possibly making the damage worse.

Kevin Pratt, insurance expert at moneysupermarket.com, says: "Theft is more likely if a house is unoccupied, and if a home is let, tenants do not always take as much care of the property as the owners."

When it comes to buildings insurance, Pratt says the policy should cover the cost of rebuilding, including any outbuildings and swimming pools - but remember, the rebuild value is not the same as the market value.

"Many insurers offer online calculators to determine the rebuild cost but the figure might be tricky to calculate so it might be a good idea to choose a policy that offers unlimited cover, so you don't have to worry about working out the rebuild cost," he says.

And if you intend to let your property to tenants during the times you are not there, you will need to make sure you are covered for commercial usage, not just family-use.

Holiday homeowners often overlook the need for adequate contents cover because they don't think they have anything particularly valuable.

However, you will be surprised at just how much money all the little things can rack up to. Homeowners should try to walk through each room and make an inventory of every item, and don't forget the garden essentials like BBQs and garden furniture.

Here is a useful checklist for holiday home owners:

Adequate Building & Contents Insurance - check for specific security measures required to ensure your policy is valid. Try and find a policy that covers theft by non-forcible entry, so you're insured if any windows are left open, essential in hot countries. You might want to make sure outdoor furniture is covered as well as indoor. Check how long you can leave your property unoccupied without invalidating your cover.

Public Liability Cover - vital if you intend to let your property when you're not using it. This will cover you against any claims a guest makes against you if they injure themselves while staying in your property.

Insurers recommend an indemnity of over £3m. Make sure that your public liability insurance extends to cover any accidents involving your swimming pool.

Policies bought locally might appear cheaper, but foreign insurers do not necessarily provide the same level of cover as those in the UK - in Spain cover is typically up to £200,000 whereas UK insurers offer more.

Also make sure the policy covers accidental damage by tenants, loss of rental fees and emergency travel costs in case your property is damaged and you need to get it quickly.

Warning: having these features will push the cost of your insurance premium up:

Private pool/hot tub,
Non-habitable outbuildings
Conservatories

Letting on a long-term basis

Generally most insurers will charge more if you plan to let your property long term. However, if your property is in the UK you can let it out on a short hold tenancy agreement if you have landlord insurance.