**A holiday home is bound to be unoccupied at various points in the year whilst you’re working hard to finance it. Therefore those looking for insurance will require a specialist policy.**
It is not quite as simple insuring a property abroad as purchasing a standard home policy like you have in UK. Cover for holiday homes can include the following, even when the property is unoccupied:
* Cover for buildings and contents against a wide range of risks, including fire, theft, lightning, flood etc
* Liability cover
* Accidental Damage cover
* Emergency travel - if your holiday home suffers damage and you need to be present on site, insurers will pay towards your travel expenses
* Cover for loss of rent
#How much should you insure for?
The cover provided by holiday home insurance is usually on a “new for old” basis and therefore the sum insured on contents, should be the cost of replacing furniture and furnishings etc.
Re-building costs are also the basis to be used when calculating the amount to insure a property for and not what was paid for it. This usually does not have any bearing on the true re-building cost.
The sum insured on buildings should be the cost of rebuild including current day building materials, labour, removal of debris, surveyor's, architect's and solicitor's fees and so on.
**What happens if I do not insure for enough?**
Underinsured is the word that describes a situation in which you have a gap between the actual cost of replacing your home and the amount of cover you have chosen for your home. Underinsurance can result in insurers applying the average clause - this would result in a claim payment and can be proportionately reduced by the same percentage that your property is underinsured by.
For example, you choose a rebuilding sum insured of £200,000 but your actual rebuilding sum insured should be £400,000. So you are underinsured by 50%.
Insurers could deduct 50% from the payment you would have expected to receive so you only receive £100,000 towards the cost of rebuilding your home which actually costs £400,000!
Ellis David are specialists in the residential and commercial property insurance markets, with combined experience in excess of 70 years. With access to all of the major insurers in this specialist market, they provide a bespoke service to suit every property owner ranging from an individual with one holiday home to a small landlord with one or two investment properties, to large commercial concerns handling substantial investment portfolios.
They have links to insurers who provide high quality overseas holiday home insurance cover in over 40 countries, including Spain, France, Portugal and Italy. Cover can be arranged for your home when used solely by you, your friends and family and/or when you choose to rent your property out to paying guests.
To find out more you can contact Ellis Davies on (0)20 7354 3881 or visit
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