A guide for owners:
If you’ve already taken the plunge and purchased a property for use as a holiday home, congratulations!
Alex Walters from NFU Mutual Bury St Edmunds, has put together the following information in relation to our Caterers Insurance covers, which will help you to better understand the process of setting up your holiday property, ready for your first guests.
Opening your second home to paying guests can provide a great revenue stream, but there are many points to consider - not least ensuring that both your property is covered, and your guests are protected.
Firstly, it’s important to differentiate between the use of a second home for private use (i.e. used solely by friends and family) and a property that has been purchased for letting to paying guests.
For example, if you have purchased the property to earn an income, you need to consider protecting that income should an insured event take place and you are no longer able to rent the property out. Alex discusses our Caterers Insurance covers below which could help to keep your business running should the worse happen.
What should your Holiday Home Insurance cover?
Buildings Insurance – covers the structure of the buildings against damage from events such as flooding, fire, storms and vandalism. It also covers permanent fixtures including fitted kitchens and bathrooms.
Contents insurance – covers the household goods, including furniture, electrical equipment such as TV and sporting equipment. In some situations, we can also include your own household contents kept at the property.
Accidental damage – covers situations when unexpected accidents happen, such as spillages on the carpet, breakages around the property or broken windows
Public Liability insurance – covers legal fees and compensation costs if one of your guests is injured on your property and you are liable.
Employers Liability – covers legal fees and compensation costs if an employee suffers an injury or illness as a result of carrying out their duties.
Loss of rental income – covers loss of earnings if you have to cancel any bookings because of damage to the property caused by an insured property loss.
Legal Expenses cover – covers the cost of legal representation should you encounter issues with your guests and require legal assistance.
Cancellation of Advance Bookings – an optional extension providing cover for loss of income in the event that a guest cancels or cuts short their holiday due to a specified event.
Holiday homes by their very nature can have more considerations when it comes to insurance cover. For example, how long will it be left unoccupied for between guests? A standard home insurance policy may not be sufficient to cover a holiday property, so it’s important to ensure you have the correct covers in place to cover those extra risks.
Other points to consider when discussing your Holiday Home Insurance:
- Catering for your guests – i.e providing cooked meals
- Providing leisure facilities such as a swimming pool, bicycle hire or gym equipment
- The level of Public Liability required – if you are offering a property which can host a number of guests, a higher level of Public Liability may be required to ensure you and your guests are adequately protected.
- Security – are doors & window locks up to current standards? Many Holiday Home Insurance covers require a ‘Minimum security’ in order to cover you for burglary or theft.
- Unoccupancy requirements – your policy contains an Unoccupied Premises condition, which describes what you must do if the property is left unoccupied for more than 30 consecutive days.’
If you would like to better understand our cover for holiday homes and what you might need to consider when insuring your property; contact one of our friendly team members at NFU Mutual Bury St Edmunds via the details below and we can explain the full cover and any limits and exclusions that may apply:
Phone: 01284 701144
Email: burystedmunds@nfumutual.co.uk
Website: https://www.nfumutual.co.uk/agent-offices/bury-st-edmunds
Facebook: @nfumBuryStEdmunds
X: @nfum_burysted
D A Blackwell, A Walters, L J Santon & G R Anthony is an appointed representative of The National Farmers Union Mutual Insurance Society Limited (No. 111982). Registered in England. Registered Office: Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. A member of the Association of British Insurers.
If you're considering investing in a holiday home, discover how Cornwall Hideaways can assist you! From promoting your property to managing bookings and maintenance, we aim to make letting your holiday home as stress-free and simple as possible. Explore our website or reach out to us today.