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If you’re thinking about holiday letting, you want to know your property is in good hands. Lakelovers belongs to...
We know how important your property is to you, which is why it’s essential to make sure you have the correct holiday let insurance in place.
Knowing what insurance to have can be confusing and not having the right cover can leave you with a large bill if things do go wrong. To avoid unwanted charges and nasty surprises, we’ve gathered our 40 years of knowledge on holiday let insurance here for you, so take a look through our quick guide to ensure you have everything covered.
Regular home insurance or buy-to-let insurance does not cover you for holiday letting. Holiday let insurance is specifically designed for properties that are let out on a short term basis (less than 120 days per year) to paying guests. It’s not a legal requirement, but without this cover you’re vulnerable to costs such as accidental damage to the property or its contents.
Some mortgage providers may also require you to have certain insurance policies in place for a holiday let, so it’s better to be safe than sorry & make sure you’re covered.
A building’s insurance policy covers the house’s structure, walls, roof and its permanent fixtures and fittings, such as kitchens, bathrooms etc
To ensure you have the right buildings insurance, you will need to know what it will cost to rebuild your holiday home. This amount will be different from the current market value so it’s important to get the calculation correct to get the right amount of cover. To help with this valuation contact either a chartered surveyor or you could speak to your mortgage company. Also the Association of British Insurers are there to assist with this calculation too.
Note: If you still have a mortgage on your holiday let, then your mortgage provider may insist that you take out buildings insurance. Give them a call and check this with your mortgage provider and find out their requirements.
In a holiday let, it’s not just your building you need to protect. Contents insurance will cover damage to your belongings in the event of a fire, natural disaster, theft or damage caused by guests. Contents insurance can be purchased as a standalone policy or can form part of your holiday let insurance.
Public liability insurance is essential in your holiday let. Without it, you may be liable for any accidents that occur within your property. It’s essential you choose an appropriate level of cover, especially if your property poses higher risks (for example steep staircases, low ceilings or shiny floors, slippery when wet) so check the small print. Here at Lakelovers, we require all of our property owners to have a minimum of £2m public liability insurance.
Where public liability is not required by law, employers liability is a legal requirement if you employ even just one person. This includes gardeners, cleaners & maintenance workers . If you employ anyone to help manage your property you must have employers liability insurance to protect yourself against any accident claims.
Your holiday let is most vulnerable when left empty for long periods of time. During winter you may experience leaks or burst pipes which can go unnoticed in an empty property. For this reason, it’s important to check with your insurance provider if there are any restrictions on how long your property can remain empty without invalidating your policy.
Loss of rent cover provides protection in the event that your property becomes uninhabitable for a long period of time, for example as a result of a fire or flood. In these circumstances, future bookings will likely have to be cancelled meaning loss of income for yourself. If you rely on this income, loss of rent cover is something worth looking into, to help make up for any money lost.
The cost of holiday let insurance depends on which types of cover you choose to take out & what level of cover you opt for. Other factors also affect price, for example contents insurance is calculated depending on the value of items inside your property.
If you need the help of a specialist provider to make sure you’re getting the right cover for your needs, Lakelovers and the Sykes Family have partnered with Pikl Insurance to offer our owners comprehensive top quality cover that’s tailored to suit your holiday home needs.
So whether you’re just at the beginning of your holiday letting journey, or ready to take the plunge and start marketing your property, remember to get the correct level of cover for your holiday let in the Lake District to protect yourself and guests from any of those unexpected and unfortunate circumstances. Read the Sykes Cottages blog for more in depth Holiday Let Insurance info click here
For further information about letting your property, fill in our Let Your Cottage form or email newowners@lakelovers.co.uk or call on 015394 88855
*Sykes Cottages Ltd is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346 who are authorised and regulated by the Financial Conduct Authority firm number 773457. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.