Insuring a Second Home
By Simon Mobey, Chubb Insurance.
Your perfect holiday home has been bought - but has the insurance nightmare begun? We often hear of inadequate policies bought through the overseas mortgage provider. Ensure you fully protect your property with suitable insurance. It's particularly vital if it is intended as a long-term investment. Here are a few pointers.
- Minimise your effort. Seek a policy that enables you to insure the main and second home on one policy, with one premium and one renewal date.
- Use a UK expert with global cover. Dealing with a UK insurer is naturally easier and means you can actually read the policy. What does 'total sums insured' look like in Spanish?!
- Don't trip up on occupancy clauses. How long can a property be left 'home alone'? Many policies state that cover is void if it's unoccupied for over 30 days or require someone to visit weekly. Check your policy wording and contact your broker with your queries and concerns.
- Get an accurate rebuild value. Avoid the usual mistake of insuring for the market value. And note that most insurers put the onus on you to estimate the rebuild value-then penalise you if it's wrong. How confident would you be at estimating French building and architect's costs? An appraisal service that estimates the rebuild values removes the doubt. Your broker can facilitate this for you.
As many UK second homes are unique Listed properties - getting the rebuild value right is crucial. It's very likely that you'll be legally obliged to restore a Listed property to its original condition - no matter the cost. - Are all contents covered? Most insurance policies will not cover valuables left in an unoccupied property or away from the main home. Through a specialist policy offering worldwide, 'all risks' cover you will be automatically covered wherever you keep your possessions - including during transit.
- Any conditions? Many policies demand that empty properties have heating systems drained every time they're left empty. This is not how a discerning homeowner would choose to live their life. It's ironic that the more possessions you obtain in life, the more you are dictated to by some insurers. Your broker can seek one that does not impose onerous conditions on you.
In summary, when you insure a holiday home you should expect to purchase the same high quality, specialist insurance as you do for your main home with no small print to catch you out or restrict how you enjoy your property.
Coleman Insurance Brokers would like to thank the Chubb Insurance Company of Europe for providing this article.
Chubb provides insurance for fine homes and contents.
