Insurance for holiday lodges & chalets

Insurance for holiday lodges and chalets covers specific types of properties:

Use: These types of lodges and chalets are typically built on parks for holiday use and are often rented out to guests. This means that they are used very differently to homes lived in as a primary residence. They will also be viewed as a different type of insurance risk.

Occupancy: Given their use as holiday accommodation, insurers may place restrictions on how often the property can be used. This means they may be empty for longer periods than traditional homes.

Construction: The building materials used for holiday lodges and the size of the properties themselves can vary greatly. This can make them very different to bricks and mortar properties.

Given the differences with traditional home insurance, cover and premiums for holiday lodges and chalets will be tailored differently, with more of a focus on issues such as guest activity and protecting the home when it is empty.

Any requirements for holiday lodge insurance will depend on personal circumstances, such as:

Where your holiday lodge is: Some holiday lodges in Scotland may require buildings and liability insurance as part of obtaining a short let licence if not situated on a park that already covers this type of licensing requirement. Each region of Scotland may require different levels of cover, so speak to your local authority if you are not sure. If your property is situated in a holiday lodge park, the park owner may require some form of insurance in place too.

Holiday lodges managed by agencies: Property management companies that rent properties out to guests typically require appropriate insurance in place.

Property finance: If you purchased your holiday lodge with finance, some lenders may also require insurance in place.

You may also want to write down a list of personal reasons for insurance. Ask yourself:

• Do you need insurance to cover the cost of repairs?
• How would you manage issues such as loss of income or liability claims brought against you?
• Are your contents easily replaceable?

Working out your specific demands and needs can help you decide how much and what type of insurance you require.

Pikl’s host cover for guest claims is fixed. Pikl can quote on a case by case basis if you also require a quote for standard cover. The premium for standard cover may depend on how the underwriting insurer assesses your property. Based on the details you provide them, this may include:

The make and model: When your holiday lodge was built and the make and model of your holiday lodge may play a big part in determining how much you pay. Cover for this is usually done on a new for old basis, meaning that your insurer can cover the cost of getting the same type of holiday lodge brand new following a successful claim. Custom built holiday lodges may incur a higher cost as they may have more unknown or higher risks, especially if they are luxury models.

Holiday lodge location: If a holiday lodge is situated on an identifiable holiday lodge park, this may give your insurer more certainty regarding risk. Any location specific issues such as burglary rates and weather events may also impact your premium. Holiday lodges situated in areas with an address that is not easily identifiable may mean that you face an increased premium if the insurer is willing to cover you.

Cover levels: Insurance premiums will also be dictated largely by how much cover you need. Always make sure the level of cover you set and the excess you are willing to pay meets your demands and needs.

Claims history: How many claims you have had may impact issues such as your no claims discount. In addition, the type of claim that occurred may be a factor.

How the holiday lodge is used: Factors insurers may consider here include how often it is occupied, any extended periods of the property being empty, whether it is rented out and what the property is primarily used for.

Like other types of insurance policies, shopping around is often the best way to get a deal that works for you.

The insurance Pikl covers online is for issues that relate to having paying guests that stay at your property. It acts as a top up to your existing insurance, provided you still have a policy elsewhere that covers standard risks such as fire and storm damage. If you’d like a combined package that includes cover for these standard risks as well, please call and speak to a member of the Pikl team.