A Comprehensive Guide to Holiday Home Insurance

What is holiday home insurance?

Holiday home insurance is specifically designed to provide comprehensive coverage for your vacation property, much like how building insurance protects your primary residence. This type of insurance offers valuable security, particularly when your vacation home is unoccupied, as you have limited control over potential incidents that may occur.

How a holiday home insurance covers

Holiday home insurance typically includes coverage for fire damage. This coverage means you are protected in the event of damage caused by lightning strikes. If your holiday home suffers soot damage, your insurance will also cover that. Additionally, any damage to electrical wiring or installations resulting from a fire is included in the coverage. 

Many lenders also require fire insurance if you have a mortgage on the property. 

Alongside standard coverage, you can customise your insurance policy by adding optional coverages based on your specific needs, such as:

• Basic coverage
• Storm damage, etc.
• Other sudden damage
• Glass and sanitary ware
• Homeowners' liability
• Legal assistance
• Service lines damaged
• Hidden pipes and cable damage
• Insects and rot fungus
• Rot damage
• Home contents for a holiday home
• Electrical devices
• Rental coverage 

You can explore additional optional coverage options for your holiday home to ensure you have the protection you need.

Does the holiday home insurance cover my belongings?

Your holiday home's contents are not covered by insurance, but you can add this option to your insurance on My Page, where you can immediately see the add-on costs.

The depreciation of pipes depends significantly on their age

Their age heavily influences the depreciation of pipes. Pipes that are less than 20 years old do not incur any depreciation. However, for pipes 20 years or older, you will receive compensation equal to 70% of the original price minus your chosen insurance excess.

Will the insurance cover my holiday home if I rent it out?

We can provide insurance coverage for your holiday home if you rent it out through an agency (such as Airbnb) or privately with a lease and deposit. Either way, you must purchase and add "Rental Coverage" to your policy.

Get coverage while you build a new holiday home

Are you in the process of constructing a new holiday home? If so, consider purchasing insurance that offers coverage during the construction phase. 

The standard coverage option protects against damage from fire and storms. However, we always recommend obtaining construction insurance to ensure extensive protection while you build.

Note that the insurance does not provide coverage for this

You won't be covered if your vacation home experiences damage that could have been prevented through regular maintenance or is due to the house's natural ageing.

The weather and natural elements can also contribute to the wear and tear of your property. For instance, if your home is near the beach, it may experience more rapid deterioration due to the weather conditions.

Even with diligent maintenance, damage you couldn't have foreseen or prevented is typically covered. This policy includes scenarios such as pipe and service line damage.

Considering these factors, exploring additional coverage for unforeseen damages might be a good idea.