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.

Kamikaze Crows Attack OAP's House

A Gloucestershire pensioner has been forced to protect his home with netting after the property was targeted by kamikaze crows.

In a bid to avoid having to make any home insurance claims for the damage caused by the attacking crows, Ronald Milton has now installed netting to stop the "disturbing" events.

In what appeared to be a real life version of Hitchcock's The Birds, Mr Milton's home in Bisley Road, Stroud, was targeted by crows which kept flying into the windows.

Over a period of six months the birds would "fly up to the window then fly back crashing in to it", the 89-year-old said.

"It seems to be only my house, they are a nuisance and they make a mess on the windows," he added. "The netting doesn't seem to make any difference though."

Dr Colin Studholme of the Gloucestershire Wildlife Trust said that the unusual behaviour could be a result of two things: "Sometimes birds fly into windows because they think they can fly straight through a house if they can see some light on the other side.

"Or the other possible option is that they can see their reflection in the window and they will attack it, particularly at this time of year when crows are mating and very territorial."

Homeowners Warned Over DIY Gas Work

CORGI, the gas safety body, has warned householders that they risk invalidating their home insurance if they tinker with their own electrics or gas appliances rather than using professional tradesmen.

Due to the credit crunch, 41.4% of consumers admitted they were more likely to try to do work themselves, but CORGI says it could also lead to an increase in fatalities as well as creating insurance problems. Only 15% of respondents said they would always use a professional tradesman.

The research, carried out for the Gas Safe Register, found that while 82% of those questioned considered it dangerous to fit a gas fire themselves, one in 10 were still prepared to do so.

Incorrectly fitted, badly repaired or poorly maintained gas appliances are a major cause of carbon monoxide (CO) poisoning, and can also lead to gas leaks and explosions.

On average 25 people a year die from CO poisoning, while 40 people a year are killed or injured in gas explosions.

Ann Robinson, Gas Safe Register's director of public awareness, said: "If anyone thinks DIY gas work can save them money, they should think again. For the sake of a few pounds, they risk endangering the life of anyone who lives in that property."

Odd Insurance Claims

A UFO was alledged to have caused damage to a wind turbine in Lincolnshire recently which begs the question, if a UFO crashed into your house, are you covered by your home insurance? This and many others are included in this list of the oddest freak insurance claims.

Claims for freak household disasters are nothing new but if something like this happens to a householder, too often they fear the response from an insurer. They worry that it will be up to the policyholder to prove that a little green man was responsible. ‘Act of god’! More like ‘Act of Alien’!

What if a meteorite was to strike my house?
How about a stampede of wildebeest on the run from a local safari park?
What if a vindictive ex-husband bulldozes my home to the ground?
How about if a shark fell through my roof?

British motorists made claims last year for everything from a frozen squirrel crashing through a car windshield to a cow jumping on a quad bike, an insurance company said. Freak accidents involving animals topped the list of odd excuses for motor insurance claims with food-related mishaps in second place.

"We see a lot of strange claims but we were surprised at how many involved animals and food, of all things," said Sally Leeman of Norwich Union, one of the country's biggest insurance providers. "We can hardly tell drivers to beware of flying kebabs and frozen squirrels when they're on the roads but this shows how important it is to be aware of what's going on around you at all times."

The top 10 motor insurance claims were:

"A frozen squirrel fell out of a tree and crashed through the windscreen onto the passenger seat."

"The car was parked when a reindeer fell on the bonnet of my car."

"As I was driving round a bend, one of the doors opened and a frozen kebab flew out, hitting and damaging a passing car."

"A herd of cows licked my car and caused damage to the paintwork."

"A zebra collided with my car when I was at a safari park."

"While I was waiting at traffic lights, a wasp went down my trouser leg which made me hit the accelerator and prang the car in front."

"I couldn't brake because a potato was lodged behind the brake."

"My parked car was hit by a bull which had escaped from an agricultural show."

"A cow jumped on my quad bike."

"As I came over the hill, I hit a cow in the middle of the road, which then hit the bonnet and shattered the windscreen with its rear end."

Landlords Should Protect Lettings

The national deposits regulator is urging landlords to get the necessary home insuranceafter research revealed the cost of damage caused by tenants.

According to The Deposit Protection Service (The DPS), landlords can be exposed to the cost of cleaning up after tenants who show little regard for a property.

Figures show 40% of DPS disputes between landlords and tenants occur in the South East of England, making it even more important for these landlords to arrange suitable buildings insurance to cover mishaps from flooding to fire.

Half of disputes in the South East were the result of tenants damaging the property, with 36% due to the property not being cleaned.

Results show cities which are popular with students are also likely to have a number of disputes. Most disputes happened in London, followed by Bristol, Manchester, Newcastle upon Tyne and York.

Kevin Firth, director of The DPS, said: "Exasperated landlords have sent us all sorts of complaints about tenants. One landlord discovered that his property was being used as a brothel."

Source: Landlords Urged To Protect Lettings

What Act of God means in Home Insurance

Home insurance policies sometimes contain clauses which refer to an ‘Act of God’. These tend to limit liability for natural phenomena such as lightning strikes, floods, hurricanes, tornadoes, earthquakes and plagues of frogs – freak occurrences which cannot be prevented.

Insurance providers occasionally include these clauses to protect themselves from the hefty payouts usually associated with such unpredictable events. So, in the event that your property is damaged by what is deemed to be an ‘Act of God’, you may find that your insurance provider refuses to pay out. At which point, you might well take certain names in vain.

To this end, it’s always an idea to check your home insurance policy and see what’s excluded under the ‘Act of God’ clause. Obviously, the very essence of these exemptions is that they are unpredictable, so it can be difficult to judge if they apply to you. For example, you may not think of your property as being particularly lightning-prone, but you never know. However, it is certainly prudent to check for supposedly freak events which are becoming more prevalent, such as floods. If you do live on a floodplain, and yet floods are considered to be an ‘Act of God’ by your insurance provider, then you may later regret being underinsured.

That said, policies today often provide cover for chance occurrences in their standard buildings insurance inclusions. A certain level of flood damage cover may be provided, for example – probably no surprise since flooding seems not uncommon nowadays. Likewise a certain degree of storm damage cover may be provided. To be sure of the extent to which you’re covered, be sure to read the small print in your policy.

What if your house were to be destroyed? It is obviously unlikely, but not unheard of. In such a situation, if you have taken out buildings insurance (which you almost certainly will do if you have a mortgage, as it is likely to be one of your lender’s requirements), then you will be able to recover your rebuild cost. Plus some policies may be able to provide an ‘alternative accommodation’ payment in the undesirable event that your property is rendered uninhabitable for a period of time.

Last, but by no means least, it is an idea to know exactly what constitutes this exemption in the eyes of your insurance provider. Don’t get caught out by vague wording… If the situations which constitute an ‘Act of God’ aren’t specifically defined in your policy, then request clarification from your insurer, so that they cannot hide behind something loosely defined in the event of a claim. Possibly the best advice that can be given – with ‘Act of God’ clauses and as with all insurance – is know your Home Insurance policy!

Source: Confused.com Explain ‘Acts of God’ in Home Insurance

Considerations For a UK Landlord

Energy efficiency

The National Landlords Association has highlighted the benefits of maintaining an efficient home, stating that it can make it more attractive to prospective tenants. Improving a house or flat can also add value to the property, as well as lowering the risk of damp or mould setting in. Tenants who receive lower fuel bills are more likely to stay in a property for longer, reducing the amount of void periods that landlords experience. In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants. Finally, under law, UK landlords are required to provide energy performance certificates to potential tenants.

Rent Protection Insurance

Landlords take a gamble if they do not take out rent protection insurance. Even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments. It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, but taking out insurance can offer extra protection, since there is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent.

The Credit Crunch will make it tough in 2009

Next year will be difficult for some people with buy to let mortgages. The CML expects the number of households in arrears for three months to increase by 500,000 next year. Unemployment levels will also have an impact on the property market. But for those who manage to stay in employment, variable-rate mortgages will become progressively cheaper.

Consider Deposit Protection Schemes

Deposit protection schemes can improve relations between landlords and tenants. Such schemes should have a positive effect on the tenants relationship with you. Landlords must provide proof of any damage to a property in order to withhold deposits. Some landlords abused the old deposits system, but most landlords are reasonable and do not charge for small amounts of damage. People with buy to let mortgages have been advised to take out rental guarantee insurance as a safeguard against the current economic situation. It is also recommended that investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.

Recent figures from the National Landlords Association show that 71 percent of landlords expect rent arrears to rise next year.

Consider your buy-to-let mortgage deal if you need one

Those with buy to let mortgages should begin preparations to find a new deal on their loans as early as possible. Landlords should begin the remortgaging process as soon as they can to avoid paying higher amounts of money later on. Investors who do not have a 25 percent deposit in a property to seek a professional valuation before looking to remortgage.

In November 08, the Council of Mortgage Lenders reported that there were 11.69 million mortgages outstanding in the UK in the third quarter.

It'll take time

Those with buy to let mortgages must put time and investment into their property portfolios over the coming years if they are to make a profit. Landlords must be clever to survive through the economic downturn: you will not make money over the next ten years if you do not put in the investment and time to work out what the best buy to let strategy is. You could save money by cutting out agents and managing properties yourself.

Deposit Protection Schemes

Deposit protection is likely to improve relations between landlords and tenants. Such a system should have a positive impact on tenants' relationship with you. Landlords must provide proof of any damage to property, in order to keep the deposit. Some landlords abused the old system of deposits, but most homeowners are reasonable and do not charge a fee for a small amount of damage. People who have bought mortgage loans have been advised to take the lease as a guarantee of insurance coverage from the current economic situation. It is also recommended that investors should always carry out credit checks on prospective tenants, whether or not the economic downturn.

Recent data from the National Landlords Association show that 71 percent of homeowners expect rent arrears will increase next year.

Gamble with no Insurance

Landlords take a "gamble" if they do not take out rent protection insurance, it has been claimed.

Michael Portman, the managing director of Let Insurance Services, said that even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments.

It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, he noted, but added that taking out insurance can offer extra protection.

"There is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent," he remarked.

This view is shared by the Association of Residential Lettings Agents (Arla).

They note that many landlords face the possibility of tenants being unable to pay their rent, saying that even reliable occupants "may not know what's around the corner" in times of recession.

"There are ways that landlords can manage that risk and the most important way is to insure themselves," Arla remarked.

They also recommended that buy to let investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.

Recent figures from the National Landlords Association show that 71 per cent of landlords expect rent arrears to rise next year.

Energy Efficiency for Landlords

Those with buy to let mortgages have been encouraged to consider the energy efficiency of their properties.

The National Landlords Association has highlighted the benefits of maintaining an efficient home, stating that it can make it more attractive to prospective tenants.

Improving a house or flat can also add value to the property, as well as lowering the risk of damp or mould setting in, the body noted.

And it claimed that tenants who receive lower fuel bills are more likely to stay in a property for longer, reducing the amount of void periods that landlords experience.

"In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants," stated NLA senior policy officer Elizabeth Brogan.

Under law, UK landlords are required to provide energy performance certificates to potential tenants.

The legislation has just been introduced into Scotland.