You may not have heard of holiday home insurance twenty years ago in Renters insurance va. But as the economy has grown, so have the bank accounts of a large number of people. From necessities to luxuries, the rich are always on the lookout for ways to spend their wealth.
It is quite the height of fashion to own a home in a foreign country, or in many foreign countries. Even the average Joe who can afford it will have a second home at an exotic location that is normally considered a great tourist spot. Not only does a second home or a holiday home provide you with a place to stay when you visit that country, it also allows you to earn some extra income as rent during the months you are not living there.
Just like any other financial asset, you must insure your second home abroad too. But getting insurance for holiday homes is not as simple as getting insurance for a home you own in the UK. There are many variations in foreign insurance laws which may be seen as loopholes which could be used by the insurance company to inveigle themselves out of a payout.
Laws in some European countries differ to a certain extent from standard UK laws. So the criteria for insurance will be different too. Plus, many things that are standard on any insurance policy in the UK may be optional abroad. So it is crucial to read the documents carefully.
The main issues that the UK citizens face with home contents insurance on their holiday homes is the liability cover. Often, liability is not even covered in the policy and it will have to be an add-on. Also, it will not be offered, so you will have to request it or get it tailored into your policy. Ensure that any employees such as a caretaker are covered under the liability clause of the insurance policy.
The second main issue that consumers are disgruntled with is the fact that many standard policies will not cover your home during extended periods of non-occupancy beyond a certain time. However, this will only be a problem if you do not rent your holiday home.
If you do not rent, then you will have to check with the insurance company what arrangements or measures will have to be taken by you to ensure that you are covered. Usually, the policy will just require you to have additional security. But be sure to check what would qualify.
Since there are quite a few issues with insurance abroad, it is important that you do a holiday home insurance comparison of all the quotes that you can lay your hands on and then scrutinize each policy till you finalize on one that gives you the best cover.
You could just get holiday home insurance from a UK insurance company for a home abroad. But you might find the premiums too high. It is thus cheaper to get insurance from a local company.