By Geraldine Kelly, head of personal lines for Gallagher in Ireland
“I recently inherited a cottage from my aunt. It’s along the Donegal coast with stunning views. As I live and work in Dublin, this cottage will be a holiday home for me – though it will likely be late spring and summer before I get to spend some time there. Given the cottage will be vacant for most of the winter and early spring, how to I go about ensuring the property is adequately insured? And do I need to get additional cover if I decide to rent the cottage out to tourists from time to time?”
As standard home insurance will not provide adequate cover for your holiday home, you will need to arrange holiday home insurance instead and the easiest way to do so is usually through a broker.
You mention that you expect your cottage to be vacant for most of the winter and spring. A holiday home is vulnerable to the same risks as any home or building – however, as they are more likely to be vacant than other types of dwellings, it’s possible that things such as burst pipes, leaks or missing roof tiles might go unnoticed for a period of time. Vacant homes are also more prone to break ins.
For these reasons, there will be a number of conditions in your holiday home insurance policy which you will need to understand and meet, particularly in relation to any periods that your cottage is unoccupied.
For example, owners of holiday homes are often required to turn off the water supply at the mains whenever the property is unoccupied for more than a few days – often from as little as 48 or 72 hours – especially in the colder months of the year (typically between October and the end of March). If you don’t, and a leak occurs, your claim could be rejected.
Furthermore, if the property is vacant during the colder months of the year, you usually have to drain the water and heating system. You may not have to drain the water and heating system if you leave the heating system on permanently at a certain temperature – but this is something you will need to check in your policy. Failure to meet these conditions will likely result in your insurer turning down a claim for damage caused by burst pipes.
Another condition you are likely to have to meet when your home is vacant is to ensure the gas and/or electricity are turned off at the mains and that all electrical appliances are unplugged/disconnected from the supply, other than those needed to maintain the central heating and alarm systems. You will usually also be required to appoint a responsible person to check the property regularly.
As a coastal cottage, it’s quite possible that your holiday cottage doesn’t have access to natural gas for its heating. If it’s the case that it is heated by home heating oil, be sure to understand the limits and conditions of your policy in relation to fuel tanks.
Insurers will refuse to pay out in the event of a claim if the homeowner has not complied with the terms of the policy.
It’s important to choose a holiday home insurance policy with a high level of public liability cover if you plan to rent out your cottage to fee-paying guests. This will cover accidental injury to your guests or anyone you might hire to maintain your property – such as a cleaner or plumber. It will also cover accidental damage to your property by guests, subject to the terms and conditions of your policy. Be particularly careful if you have any features on your property which could carry additional risks, such as hot-tubs, swimming pools, open fires or wood burners. It’s important to check the wording of your policy around such features so you understand exactly what is covered.
Note that accidental damage may not be covered in your holiday home insurance policy as standard – if this is the case, you should be able to buy this cover as an add-on however.
Just like regular home insurance, it’s important that your holiday home insurance has adequate buildings and contents cover. It’s also worth comparing the various policies out there so that you get the best cover. Holiday home insurance may include cover for alternative accommodation for your guests in the event your cottage becomes uninhabitable due to storm damage that occurs when they are in situ.
Be sure that the cottage is regularly maintained as proper care can prevent many problems from occurring or worsening. This includes work such as cleaning out gutters, fixing damaged windows or doors, inspecting roofs and chimneys and repairing any damage that has occurred.
As your holiday cottage is by the sea, it might be more at risk of storms and floods. If this is the case, it’s important to understand any restrictions to storm or flood cover, particularly if your property is in an area that is prone to flooding. It would also be advisable to take preventative measures to protect your cottage from flooding – such as having sandbags to hand, a flood kit in the property and if feasible, moving valuables, furnitures and appliances from downstairs to upstairs.