Estimated Read: 10 minutes.
With more people looking to take advantage of alternative holiday experiences, letting out your holiday home to paying guests could be a smart way to bring in extra cash. Before you attempt to capitalise on this trend, it is important to make sure you are protected if something happens. Here are some of our top insurance tips.
Residential home or landlord insurance may not cover you
If your property was previously a home that you lived in, a residential home insurance policy is unlikely to cover you. If you previously let the property out to tenants, your landlord insurance policy may not be suitable either. It is best to check what you are covered with your current insurer before you let your property out. However, if you have not switched your insurance over yet, you may need to find an appropriate insurance policy that can cover you for holiday lets.
Check with your holiday home or second home insurer.
If your property is an additional home, you may already have a holiday home or second home insurance policy. You will, however, need to make sure this cover also includes insurance for claims caused by having guests in your property. A traditional holiday home or second home insurance policy are often designed to cover personal use of the property by yourself, friends, or family members and so cover for paying guests is usually inadequate. Cover for things like theft or liability insurance for injuries may be excluded if you let a paying guest into your home. In the first instance, it is best to check with your current insurer first and ask them if there is anything specific that you are not covered for.
You may need specific insurance for holiday lets
When running your property as a holiday let, one of your main concerns should be getting cover for any claims caused by having paying guests in your property if you want a high level of cover. A specialist insurance policy that can cover you for holiday lets may be the best option for you. Write down a list of things you would like to have cover for before getting quotes. A good holiday let insurance policy can cover you for things like:
- Theft by a guest if you have let them into your home.
- Legal cover and liability insurance for things like guest injuries and 3rd party damage.
- Malicious or accidental damage by your guest.
What cover does Pikl offer?
Pikl provides specialist insurance for short-term letting, including cover for properties that are run as holiday lets. If you already have insurance elsewhere, we offer a ‘Top-Up’ insurance policy. Your insurer can still continue to cover you whilst our cover can insure your home for any claims caused by your guests. You will still need to let your insurer know that you are intending to do this but alternatively, we can also cover your primary property insurance as well as cover for your guests. Our insurance for when you have short-term guests can cover you for:
- Public liability including cover for guest accidents involving bodily injury.
- Legal cover to defend or pursue legal claims against guests.
- Accidental, malicious damage and theft cover if caused by a guest.
- Alternative accommodation for you or your guest if your property is being fixed as the result of a guest related claim.
- Fire and escape of water damage caused by a guest.
- Loss of keys and replacement locks cover if renting out your entire property.
The above is an example of some of the cover we offer. If you are not comfortable with the level of cover your insurer provides, getting a specialist insurance policy is a relatively straightforward way of covering this gap in insurance.