Homeowners considering renting out there property to holiday-makers are advised to adapt their insurance policies to ensure that any claims will be met by the Insurers.
To ensure that you are covered for potential losses while renting out your residential property during the holiday season advise the Insurer of your plans and make the necessary adaptations to your policy.
Homeowner’s insurance policies insure the buildings and permanent fixtures and fittings of the residence against major perils such as fire, storm and water damage. As the risk is not affected by the fact that the house is let to tenants this should not invalidate the policy.
The household contents policy, however, does not contain a similar provision and could be invalidated by the actions of the tenant. It is advisable to discuss this with your Insurer as both the home owners and the household insurance policies usually provide that, if a property is let, theft is only covered if it is accompanied by forcible and violent entry or exit. It is therefore important to ensure that you would be protected in the event that the tenants steal your household contents.
Informing your insurer of your decision to let your property is unlikely to have a significant effect on your premium, if at all.
For those who are renting their houses out to holiday-makers it is prudent to ensure that you have accidental damage as damage to furniture may not be covered by your household insurance policy and could be considered accidental damage.
There is one other, very important matter that must be considered when renting your property for holiday purposes: Public Liability Insurance. While most domestic household policies include Personal Liability Insurance, this cover does not apply to the commercial rental of your property. Therefore, should a claim be instituted against you by a holidaymaker for Public Liability, you may find that you are not adequately covered.