Take a Second

 Before Buying That Holiday Home

Anyone who's returned from leave, frazzled after negotiating grim hotel rooms and crowded beaches, may have fantasised about owning their own holiday get-away. As well as offering the chance to disappear over weekends, the option of renting the property to other holiday makers can go some way towards making it a cost effective proposition.

AXA Insurance advises potential holiday homeowners to pay just as much attention to selecting the right insurance as they would to interest rates and property prices. Second homes carry unique risks, says Kevin Sinclair, AXA's head of personal lines underwriting.

 He explains: "If you rent out your holiday home, you could loose pre-booked hiring charges because damage to the building suddenly makes it uninhabitable or oil spillage has occurred on a nearby beach. It's worth looking around for a policy that can protect that income."

 Even if one doesn't plan to rent out the property, a standard household policy is unlikely to provide appropriate cover. Kevin warns: "You can expect to pay extra to insure a second home under a standard household policy, without getting any of the benefits of a specialised policy. Omitting to mention the insurance is for a second home is not a solution either. The insurer refuse to pay your claim if you have not disclosed this additional risk."

 In order to get the best value out of their insurance, Kevin advises the owners of second homes to keep the following five points in mind:

1. Use your second home as regularly as possible. If you leave it unoccupied for more than 60 days at a time, you risk losing your cover against events like malicious damage, escaped water and theft or attempted theft.
2. Don't be tempted to casually rent out your holiday home if you initially said you're not going to.Those who keep a second home purely for their own use, without letting it out, pay lower insurance premiums and are likely to receive wider cover. If you take this chance, you put your insurance cover at risk.
3. Think twice about what you keep in your holiday home. Insurers are unlikely to cover valuables and money in second properties.
4. Having holidaymakers stay in your property brings certain responsibilities. Make sure your insurance policy covers you against liability arising from ownership of the property, for example someone breaking a leg after tripping on a broken step.
5. Your holiday home should not only be on your mind during the summer. If the building is unoccupied for more than two weeks at a time during the winter months, you will need to protect your property from the usual winter risks such as frozen pipes. Either turn gas electricity off at the main or leave the heating systems on.

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