5 Tips for cheaper holiday home insurance

Posted on August 10, 2012 by Guest Writer
Holiday home with flowers outside

Many people dream of acquiring a holiday home abroad and those who have taken the plunge will want to protect their investment. When you have just purchased an expensive property you probably won’t be getting excited about obtaining a new insurance policy. However, as every property owner knows, it is vital to protect your new purchase against theft and damage. Essentially you need a policy that will cater to your exact needs so that you are not paying too much, and there are plenty of extra precautions you can take that will drive down the cost of insurance.

1.    Shop around

Whatever you are buying, shopping around for the most competitive quote is always a good idea, and the internet makes it much easier to compare prices. However, the cheapest policy you find will not necessarily be the best, and it is much better to pay a few pounds more per month than to find your safety net crumble should disaster strike. Paying for a good insurance policy will just give you the extra peace of mind that should something go wrong, you will be well looked after and it won’t break the bank.

2.    Secure the home

When it comes to their first home people invest in numerous safety devices, from burglar alarms and CCTV to extra locks on their windows and doors. With holiday homes potentially being empty for much of the year it is even more important to protect your possessions through extra security. What’s more, going to extra lengths to ensure you are not burgled by fitting approved security devices will drive down premiums, meaning not only will you reduce the possibility of being burgled in the first place, it will also cost less to insure your property.

3.    Consider your excess

All policies contain an excess, which is the amount you will pay towards any claim. If you are happy to pay more should a claim arise then you will be granted a lower premium. This means that the policy will be cheaper in the short term but if something should go wrong you will have to pay a bit towards the claim.

4.    Keep up with home maintenance

Due to the fact people are likely to spend less time at their holiday home than they would at their primary residence;  there is an increased chance that such properties can fall into disrepair. It is vital to keep up with home maintenance tasks at a second home, especially when it comes to the run up to winter. In the colder weather holiday homes are even less likely to be inhabited, meaning you need to prepare ahead of time for this by carrying out tasks like insulating pipes and tanks to prevent freezing in colder weather. Making sure your property is in good repair will make it less likely you will experience a holiday home disaster, keeping your insurance on the property relatively cheap.

5.    Avoid spreading out the cost

Some insurers allow their customers to spread out the cost of insurance and pay it monthly instead of in one lump sum. While the idea of breaking the expense into smaller amounts definitely seems attractive, it often means that you end up paying more in the long term.  If it is possible within your budget, it is a good idea to pay the cost upfront.