Guide to Holiday Home Insurance

Have you got the right insurance to cover your holiday home? If you’re lucky enough to own a holiday home in the UK, one downside is that you now have two properties to worry about. One way to lessen the stress is with home insurance.

Buildings insurance for a holiday home
Your holiday home insurance should cover exactly the same as your regular home insurance - the structure of your property, fixtures and fittings. Make sure your insurance policy is comprehensive and covers the full cost of the repair and rebuild of your holiday home, should the need arise.

Also check that you’re covered for subsidence and flooding if your property lies within a risk area, and read the small print to find out what your home insurance policy doesn’t cover.

Contents insurance for a holiday home
A good contents insurance policy will cover your furniture, carpets, clothes, ornaments, paintings and electrical goods. However, you may want to get additional insurance cover for extra piece of mind.

Examples of additional home cover include:

• Extended Accidental Damage
• Sports equipment or bicycle cover
• New for Old - claims paid on a new-for-old basis
• Family Legal Protection
• Guests’ Possessions Cover
• Garden equipment cover (can also include toys)
• Items in outbuildings/garage cover
• Locks and keys (to cover lost/stolen keys or damaged locks)
• Emergency Assistance – cover for temporary repairs due to a domestic emergency
• Cash/Credit Card – provides cover for theft
  

Contents cover can also be extended to include items that leave the home with you, such as laptop computers, MP3 players, cameras, SatNavs, handheld games consoles, mobile phones etc. (sometimes called an ‘All-Risk’ policy).

Important: There is one clause often found in home insurance policies that is of particularly relevance to a holiday home, and it has to do with the length of time the property is left empty.

Some insurance policies have restrictions on what they cover if a property is left vacant for a significant length of time, typically 30 days or more. This is obviously an extremely important point to consider with a holiday home, which may be left empty for lengthy spells.

A vacant home can be an invitation to burglars, so keep one step ahead of thieves by making arrangements to ensure the home is never left empty for any 30-consecutive-day period.

Top tip: You could get a reduction on your home insurance policy and your holiday home policy by beefing up security measures with the addition of secure mortis locks, intruder alarms and by joining neighbourhood watch schemes.

Sourced from http://www.confused.com/guides/household/home-insurance/confused-com-s-guide-to-holiday-home-insurance-3923288462

Remember to leave home secure when away

Empty homes provide summer burglars with easy pickings. In the excitement of preparing for your holiday, double checking your home cover is up-to-date might not seem very appealing. But when you leave your home empty you leave it at risk, so it is absolutely essential that you make sure it is secure and protected.

The summer is a peak time for burglaries, with 42% more theft claims than in the winter months according to Saga Home Insurance, which also says that nearly half of all burglaries occur when a home is empty.

What should you do to protect your home?

You need to do everything you can to make it look as though you are still at home.

Measures such as cancelling the milk and newspapers, and getting timers on your lights can be helpful, but it’s also worth asking a friend or member of the family to act as a housesitter while you are away, or at least to push any protruding post through your letter box.

Decent window and door locks are vital, as is a burglar alarm (according to recent research from Confused.com, 16 million homes in the UK do not have an alarm fitted), and having these in place could also reduce your home insurance premiums.

Also look at access to your back garden or the side of your property. Do you have a sturdy gate with a lock, or is it easy for somebody to access your land without being seen?

Whatever you do, don’t leave a spare set of keys in the garage or shed - even if you think they are well hidden.

Ensure you insure your property

These preventative measures are important but the reality is that burglaries still happen. They are always upsetting and some things are irreplaceable, but knowing that home insurance could recompense you for your belongings is invaluable.

Yet despite this, Confused.com estimates that almost 10 million households in the UK do not have any form of home insurance.

Is your home underinsured?

Even those who do have contents insurance are often significantly underinsured. This happens because, as we increase our possessions over time, we tend to forget to increase our contents insurance to cover the extra value. This is a potentially expensive problem, particularly when you consider that research by Sainsbury’s found that the cost of replacing the contents of the average British home is £45,000.

Cover your car

If you are taking your car on holiday you might be making long car journeys or driving in unfamiliar areas. A bump on holiday could be costly and comprehensive car insurance could save you hundreds of pounds.

Even if you are leaving the car at home this year, it could be at risk of theft. If you only have third party cover, upgrading could be a smart move and needn’t mean vastly increased premiums.

Whatever you do, don’t neglect your home and possessions when you go away. It can cost surprisingly little for the peace of mind that your property is protected.

Home Insurance Fraud: Don’t Be Lured to the Darkside

When the going gets tough, the tough sometimes get fraudulent. Recent figures released by the ABI (Association of British Insurers) have shown a record level of fraudulent insurance claims, proving people are willing to use their insurance policies as a way of bringing in extra cash.

According to statistics, 2000 fraudulent claims are made every week, amounting to an estimated value of £14 million.

What is insurance fraud?

If you make an insurance claim for something that either hasn’t happened, or you know to be wrong, you’re committing insurance fraud.

How much fraud is there?

The most common form of fraudulent claims is for home insurance - 55,400 frauds were detected last year at an estimated value of £110 million.

Why are there so many claims?

There are more opportunities for fraudulent home insurance claims than for any other class of insurance.

Car insurance fraud, for example, requires a little planning to orchestrate a convincing accident or theft. However, spilling paint on your sofa in order to get a new three-piece suite, is much easier.

Who’s guilty of insurance fraud?

A YouGov survey of 3000 adults, showed one-in-five admitted they’d be tempted to cheat on their insurance - despite the likelihood of getting caught.

But if you think cheating’s a quick way to boost your bank account, think again – the insurance inspectors will be after you!

The crackdown on fraudsters

“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” says Nick Starling, ABI’s Director of General Insurance and Health, on the ABI website.

Claimants may have to provide minute detail, and may even find forensic experts getting involved, all in an effort to stem the tide of fraudulent claims. And if found out, fraudsters may be blacklisted by insurers, or may even gain a criminal record.

Fraud makes home insurance more expensive

Cracking down also prevents honest policyholders paying the price.

“Fraud adds an extra £40 a year to the average premium,” says Starling, “which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”

For more information on home cover, read Confused.com’s Home Insurance Buyer’s Guide.

Sourced from http://www.confused.com/featured-articles/household/home-insurance/home-insurance-fraud-don-t-be-lured-to-the-darkside-3540983065

Increase In Botched Repair Jobs

A new report claims more homeowners are having to repair "botched" home improvements because unqualified traders have carried out substandard work.

Homeowners risk having to make home insurance claims for damage caused by badly done repairs and research by Lloyds TSB shows people are having to pay over £1,000 to correct sub-standard work.

The report shows among 2,400 adults questioned one in 10 had to have work done again because of incorrect repairs, 16% more than the previous year.

Figures also show that the average cost of the repairs was £460, but some homeowners have been forced to pay out more £1,200 fixing a conservatory and almost £700 on roof work.

The groups said of the people questioned a third who had experienced "botched" jobs had not checked workers' qualifications and never considered the cost of having to pay to repair completed work.

Lloyds TSB insurance managing director Phil Loney said: "Rogue traders are on the increase and costing unsuspecting homeowners thousands."

Buildings insurance premiums increase

The average buildings insurance premium has increased by 50p hitting a record high of £218.53 a year, as the cost of cover rose for the eighth consecutive quarter.

The AA said the 8% increase in the price of buildings insurance during the past year was the biggest jump it had seen since it began collecting the data in 1994.

Also the downward trend in the cost of home contents insurance over recent months has now reversed with premiums for the cover jumping by 2.7% during the quarter to average £126.34, according to the AA.

However, with home insurance premiums only increasing by a few pounds since the index began 1994, the AA said they still offered good value for money.

Simon Douglas, director of AA insurance, said the premium for home contents insurance has increased by almost 1% every month over the past quarter, which is an unusually steep rise.

He said the high number of fraudulent claims made last year was part of the reason for the increase.

"Fraud thrives during times of recession and the inevitable result is an increase in premiums," he added.

Burglary Risk in UK - Lowest In Preston

People living in Preston may make a saving on their home insurance after a survey revealed that they are the least likely to be burgled residents in the country.

While those with London addresses are the most at risk, the Lancashire city is rated as the safest in the UK, according to research carried out by home insurance company Endsleigh.

The firm used household theft claims made by its policy-holders over a four-year period to rank areas.

Results showed that Preston residents were around 67% less likely to suffer a break-in than the national average. Norwich and Ipswich came in second and third places.

London homes were found to be 55% more likely to be burgled than the national average, with Nottingham, Bristol and Cambridge properties also presenting a high risk of being broken into.

Endsleigh spokeswoman Rhiannon Harris warned that every householder in the country should be aware of the possibility of burglary. She said: "It's crucial that, as well as helping the success of neighbourhood safety schemes where they can, people across the country remain vigilant when it comes to home security."

Pros and Cons of Getting a Lodger

Tips on finding out whether a landlord’s life is right for you. With everyone currently feeling the pinch, many homeowners are clearing their spare room and advertising things like a house share in London to help pay the mortgage. But how do you know if becoming a landlord’s right for you? Confused.com looks at the pros and cons of getting a lodger.

The Pros

Money, money, money
The main benefit for anyone looking to rent out a spare room is money. It’ll help to cover the cost of your mortgage and you’ll have an extra person to split those household utility bills with – you can finally afford to put the heating on for that little bit longer!

Another tip to increase savings and reduce outgoings is to see if you find a cheaper mortgage.

Earn more with the Rent-a-Room scheme
The Government has a rent-a-room scheme, which means if you get a lodger you won’t be taxed on up to £4,250 of the rent income.

Find a friend
If your social life’s a little on the quiet side or you want someone to discuss last night’s EastEnders with, advertise for a lodger. Not only will it help you out financially, but you could make a new friend.

Part-time lodgers
If a full-time lodger is too big a first step, start off with a part-time one instead. Some prospective lodgers are looking for weekday lettings only and then returning to their own home on the weekend. You may earn less money but at least you’ll have the place to yourself on weekends.

Short-term lodgers
Another option is to find a short-term tenant. Students or contractors are often looking for temporary accommodation, so tapping into this market means you won’t have too long to wait if it turns out a landlord’s life isn’t for you.

An extra pair of hands
If you’re great at cooking but find it hard to plug in that vacuum cleaner, then getting a lodger could prove a great addition. An extra pair of hands to share the duties means you’ll have more time to do the things you really enjoy.

Safety
If you live alone you may feel safer with someone else in the house. Also, it means there’ll be someone home to deter burglars when you head off on holiday.

The Cons

Adapting your lifestyle
OK, so extra money, company and security may be welcome additions, but there are cons to taking in a lodger – primarily to do with the impact it will have on your lifestyle.

Freedom
You possibly won’t be able to cook when you want, bathe or shower when it suits, watch your favourite telly show if the lodger’s already watching something in the communal living space, and you’ll definitely need to rethink whether it’s ok to continue walking around the place in your underpants.

You don’t get on
This is the biggest potential problem with taking on a lodger, so try and get a feel for prospective housemates first to see if you’re compatible. Ask what their hobbies are and find out what you have in common. If they like playing the drums or if they’re a chain smoker and you’ve just quit, you might prefer to keep looking.

Even if you go through a thorough interview process, you still won’t really know what the person will be like to live with. One way to safeguard against ending up with a nightmare tenant is to offer a short, probationary contract to being with. This could be good for both of you, after all, they may not find you easy to live with!

You or your landlord has a partner
This may not prove to be a problem at all, but if you’ve rented a room to just one person but they have a partner who’s around all the time, it’ll be like living with two extra people. There’ll be more washing up, a longer queue for the bathroom and they’ll be using more than their share of household utilities. Make sure you ask about this before accepting a lodger.

Likewise, if you live with your partner and/or have a family living in the house, think of the impact a lodger will have on these relationships.

Finally…
Having a lodger may affect your home insurance. It’s possible to get a discount if the amount of hours someone is in the house increases, or premiums may go up if you decide to include the tenant’s valuables under your cover. Alternatively, you may want to leave it up to them to sort out their own contents insurance.

If you’re receiving benefits from the government, the additional income from a lodger could affect the money you receive. While you’d need to confirm this with the specific body, the general rule is that if you’re receiving means tested benefits then this additional income would affect you, whereas if you’re on contribution-based benefits, you may not lose out.