Working Out the Best Way to Insure Your Second Home
May 22, 2023
Are you one of the lucky homeowners in the UK who own a second property? With 495,000 households in the UK owning a second home pre-pandemic,1 it could be beneficial for you to explore the best way to protect your properties and find the best insurance solution. That’s where an experienced insurance broker comes in.
For high net worth individuals, a second home can serve as a weekend retreat, a holiday rental or even a property that is let out to tenants. For someone who works away from home Monday to Friday, it can even act as a weekend residence for that seamless work-life balance.
Different insurers have varying approaches to insuring second homes, so it's crucial to explore the options available to you. While some insurers allow you to bundle both properties under a single policy, others prefer to insure the second property separately.
If you rent a property out to tenants, it is worth noting that this generally requires specialist landlord insurance - even if a family member occupies your second property, and regardless of whether they pay rent or not.
If you rent out a property as a holiday let, specialist holiday home insurance is essential as this provides key covers such as public liability to protect you from claims made by a guest staying in your property in the event of accidental injury.
Keep in mind that standard home insurance policies typically don't cover properties that are empty for more than 30 days. However, second home insurance policies takes this into account and provides the necessary coverage.
Personal valuables in a second home may not be covered, but can be included under an all-risks section of the main household insurance policy. Again, an insurance broker can assist you in determining the best approach for insuring all your valuables across both properties.
Insuring multiple properties can be a more complex process. It may not just be the buildings and contents involved but other areas for consideration can include use of the property, the postcode and days when it is empty, if more than 30. Taking a portfolio approach to your insurance needs can simplify matters, as some insurers may not require you to list individual items as long as their value falls below a specific threshold.
For professional assistance tailored to your unique second property situation and access to both a broker’s expertise and a number of different insurance options at our disposal, please get in touch.
Sources:
1 UK Second Homes Climb to 495,000
