What is Holiday Homes Insurance?

Posted on: Mar 19, 2025 | 3 mins | Written by: HDFC ERGO Team

What is Holiday Homes Insurance?

When you plan to have vacations at a particular destination regularly, you may consider getting a property over there. This eventually becomes your holiday home. Constantly visiting the place and looking for accommodations can be very tiresome. On the other hand, when you have a holiday home, things become a lot easier.

Whether it is only for a weekend or an extended visit, you need to get a property. Getting a property isn't enough; you also need to secure it. Therefore, you should consider getting holiday homes insurance. This insurance safeguards your property and protects it when you're not around.

Holiday Home Insurance: A Brief Overview

A holiday home insurance is often referred to as a second house insurance because you're getting it for your other property. However, this is not your regular full-time property. Similar to standard home insurance, your holiday homes insurance will cover all the elements in your house.

When you're considering getting a secondary property, you must get it insured. It is advisable to check the policy terms and conditions for your second property. Apart from vacationing, you may also use this secondary home for renting or any other purposes.

Your holiday home's insurance will contain a lot of features which can prove to be beneficial in the long run, such as the following:

1. The insurance will protect the entire structure of the house and the contents within it against natural calamity and fire. The insurance will also offer protection against vandalism.

2. Your vacation home is going to be vacant for a specific time, especially when you're away from it. The insurance promises an added layer of security for the unoccupied property.

3. As the property owner, there will be indemnity against the liabilities. In case there has been any damage or threat to the property, the experts can help to secure it. Therefore, the third party will have their damages covered.

Holiday Home Insurance Coverage

The holiday property insurance coverage will be slightly different from your standard or regular insurance. Your holiday home will not be occupied around the year and will be used mostly during the holidays. Under some circumstances, the holiday home can stay vacant for a very long time. These unoccupied properties are more at risk of vulnerabilities such as theft, vandalism and damages.

Therefore, the type of coverage you will need for your home insurance will vary significantly under different circumstances. However, it is advisable to go for a better policy with a higher policy premium if you have a bigger property that may be unoccupied for a longer period.

If you're planning to rent out your holiday home, know that there will be a risk of damage caused by other people, like vandalism. For this purpose, you will have to get specialised let property insurance. This insurance offers great coverage and unique advantages.

What Will the Holiday Property Insurance Cover?

When you're getting the secondary property insurance cover for your holiday home, you will have to check what coverage it will offer. Every insurance coverage can vary depending on your unique needs. It is a sort of extension of the standard home insurance policy and can offer protection against many additional risks.

1. Theft and Vandalism

If the property is left unattended for a long time, there's a risk of theft and vandalism. The holiday homes insurance will offer coverage for thefts and vandalism while protecting your investments against such acts. However, you'll have to submit proper proofs along with the documents while filing the claim.

2. Natural Calamities

This type of insurance covers fire, earthquake, smoke, and lightning, which are natural calamities. While looking into comprehensive insurance coverage, it is advisable to check if risks of natural disasters are present. However, it is essential to note that the insurance will not cover smoke coming off the property due to gradual damages.

3. Storm, Flood or Snow

Another set of natural calamities that are covered by the holiday house insurance include storm, flood or snow. The coverage can only be provided if these natural calamities have caused any damage to the property. Homeowners must consider getting their holiday home insured if the property is located in areas prone to snow, storm, or flood. It can save you significantly against covering any additional damages.

4. Alternative Accommodation Costs

If your holiday home becomes inhabitable due to damages, the insurance company will offer coverage for alternative accommodations. However, it is advisable to check how many days of alternative accommodations will be covered and what charges will be provided.

5. Unoccupancy

The holiday home insurance covers your property when it is not occupied as well. However, they have a limit of 60 days. For example, coverage can be provided if the house has been unoccupied for the past 60 days and any damage has happened to the property. However, some insurance policies allow you to extend the days of coverage depending on your requirements.

Why Is Holiday Home Insurance Expensive?

A holiday home insurance is significantly different from the standard home insurance. This is one of the main reasons why holiday home insurance is also slightly expensive. A major reason for the insurance on holiday homes being expensive is that the property covered may be inhabited for a long period. Therefore, there's a higher risk of damage to it, especially due to theft and other perils.

Various components are recorded for this purpose, such as warranties, styles, policy endorsements and style. All of this will be reflected in the policy providing specific pricing. Therefore, when you compare, you will notice that the premiums on holiday house insurance will be slightly higher because of the risks involved. Moreover, another reason for the insurance being expensive is that there's a higher chance of claims being raised for such properties. Therefore, more claims mean more risks and requests and, eventually, higher premiums.

What are the Risks Involved in Holiday Home Insurance?

Since holiday home policy premiums are expensive, you would be considering the risks involved as well. Holiday homes may be prone to structural damage, such as burst pipes and more, which will lead to the owner filing a claim. A major reason why these structural damages occur is because no one stays.

Some insurers may require to leave the heating on in the property to avoid any unwanted damage, especially with the burst pipes. The burst pipe damage can be substantial, which is why one must be very mindful of their properties. If your holiday home is located in an isolated property, there will also be a high risk of burglary and theft. Therefore, you will have to look into liability insurance to take advantage of the benefits.

Before determining the premium price of the policy, the holiday home-insured company will consider all the risk factors. If you have decided to get your property insured, you may contact the company to discuss the coverages and how much will be covered. Moreover, make sure to discuss the potential risks around the property. You must also inform how you plan to use the property because failure to do so may prove risky, especially while filing a claim.

Conclusion

Your holiday home is one of the most valuable properties you're investing in. Considering the huge amounts of investments, securing it is crucial, too. Therefore, getting insurance for your holiday home sounds like a fair deal. Nonetheless, you must research which insurance would be a reliable choice. However, whichever insurance you choose, ensure it offers you a fair deal on the property.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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