Owning a holiday home comes with substantially higher risk than that associated with a regular home. This is because the property used as a vocation home:
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Remains empty for a long time period
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Can be let out for the period you would not be using it
Both these aspects are not covered in the standard home insurance policy, necessitating a holiday house insurance policy.
Holiday Home Insurance: Things to Consider
While buying holiday home insurance, you must consider the following:
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Insurers in every country may provide different coverage in holiday home insurance. For instance, buildings external to the main house but part of the main property or swimming pool may not be automatically included in the average holiday home insurance in some countries.
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Does the policy have a no claims bonus? You can save substantially if you are eligible for such a bonus.
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Would you be letting out the home when you are not using it? If yes, you should get an insurance coverage against liabilities. Under the law, if a guest receives any injuries while staying at the property, the owner of the property is held liable for the injuries and may need to pay damages.
Holiday Home Insurance: Tips
The following tips may help you get a good holiday home insurance:
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Take an inventory of the things to be covered under the policy. A comprehensive insurance policy should be able to protect your building and its contents.
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Your building coverage should be sufficient to rebuild the home in the event of total damage.
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Approach a specialist insurer to get the best, most comprehensive and affordable holiday home insurance policy.
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When hiring a local broker or notary, ensure that he is well versed with the terms and conditions of a holiday home insurance policy.
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Ensure that your policy is written in English so that it is easy for you to understand.
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When buying a holiday home insurance policy, do not skip reading the fine print before signing the policy. Do not hesitate to ask the insurance underwriter for a clarification if you are unable to understand some clause in the contract.