This category is about all aspects of Holiday Home Insurance and will be of interest to owners of holiday homes, cottages and holiday complexes across the UK. As Holiday Home Insurance Specialists Boshers are experts and provide tips and guidance. Check out these posts, Holiday Homes – getting your Buildings Insurance Right, Dog Friendly Holiday Home Insurance, How much should your holiday home insurance cost?, Frequently asked holiday home insurance questions, Getting your Holiday Let Insurance Right – Public and Employers Liability

Loss of income - Supreme Court Judgement and FCA Test Case - Holiday Letting Cottage

Helping to keep you informed – Supreme Court Judgement and FCA Test Case

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Loss of income - Supreme Court Judgement and FCA Test Case - Holiday Letting CottageThere has been much media coverage of the Supreme Court Judgement made on the 15th January 2021 regarding the FCA Test Case involving some insurers business interruption wordings. Understandably this has caused a number of our holiday home and cottage complex owners to make further enquiries with us as the intermediary and with Ecclesiastical, the insurer, regarding loss of income cover.

We appreciate the significant impact that government measures to control the spread of the coronavirus is having on all businesses, not least self-catering accommodation providers and the wider hospitality and tourism industry.

Q: Commonly we are being asked, “Following the Supreme Court ruling that some Business Interruption policies must pay for losses due to COVID-19, does this mean that I am covered for loss of income after all?”

A: Unfortunately, the Loss of Income section of the Holiday Home Insurance policy underwritten by Ecclesiastical does not respond to closure as a result of COVID-19.

In short this is because the policy wording in common with the majority of sme insurance policies was clear in its intention and therefore not included in the FCA’s test case and therefore not impacted by The Supreme Court ruling on business interruption.

This is a complex matter but hopefully the following explanation will help clarify the position and why it hasn’t changed following the outcome of the Supreme Court Judgement and FCA Test Case.

Loss of income cover

Our Holiday Home Insurance policy underwritten by Ecclesiastical does include a loss of income section typically providing cover for quantifiable losses following a property damage claim, such as a flood, fire or storm damage.

This loss of income section also includes the following extensions:

Prevention of access – this cover only applies where access to your property has been prevented or hindered following damage to a neighbouring property. Unfortunately, for this reason a claim for loss of income due to the COVID-19 lockdown is not covered under this extension.

Specified disease vermin defective sanitation murder – policies taken out or renewed prior to the 1st September 2020 provided loss of income cover for occurrence of established infectious diseases at the premises or within a radius of 25 miles whose impact is assessable (known as Specified Disease Cover). These diseases are set out in the policy document and only those listed in the Definition specific to this extension were covered.

COVID-19 is not included on the list of diseases covered by this insurance. This is because, in common with most of the market, Ecclesiastical’s insurance policies are not designed or priced to cover pandemics.

For clarity the Specified Disease cover in the holiday home insurance policy was removed for new policies and renewals from 1st September 2020. This is because following significant disruption caused by the COVID-19 Pandemic, our insurers, and in turn their reinsurers, have advised that such occurrences are not within the remit of standard commercial package policies. Whilst we understand that you would wish to include Loss of Income protection against a similar reoccurrence, we are unable to provide cover for any loss damage liability cost or any other sum of whatsoever nature arising from any form of infectious or communicable disease closure. This exclusion also removes the previously provided ‘specified diseases’ cover at or within 25 miles of your premises. These changes are detailed in this update to the policy wording.

FCA Test Case High Court Judgement and Supreme Court Appeal Judgement

The Ecclesiastical Holiday Home Insurance wording is clear and was not part of the FCA test case and therefore not part of the Supreme Court Appeal Judgement but to provide you with an overview of these two aspects this is as follows:

Specified disease extensions such as in the Ecclesiastical holiday home insurance policy was not one of the wordings being tested. This is because such wordings were clear and the Financial Conduct Authority has stated that most policies have basic cover, do not cover pandemics and therefore would have no obligation to settle claims for loss of income in relation to the Covid-19 pandemic.

Ecclesiastical did participate in the FCA Business Interruption Test Case in order to clarify some of their policy wordings unrelated to the holiday home insurance policy. At a Court Hearing on 2 October 2020, the FCA confirmed that it did not intend to Appeal the High Court’s original finding that losses arising from the closure of businesses due to the Government’s action in response to the COVID-19 pandemic are not covered by Ecclesiastical’s Business Interruption policies. This means that there were no further Supreme Court Appeal proceedings relating to Ecclesiastical.

Statement from Ecclesiastical Insurance:

“The High Court Judgment published on 15 September 2020 stated that losses arising from the closure of businesses due to the Government’s action in response to the COVID-19 pandemic are not covered by Ecclesiastical’s Business Interruption policies and therefore we are not required to pay claims on those policies.

We recognise that whilst the ruling supports the position we have taken throughout this period, the Judgment will clearly be disappointing to some customers. We are very mindful that this is an unprecedented situation that has been tough for customers and wanted to take part in the legal proceedings so we could gain maximum clarity for all in the shortest amount of time.

The Supreme Court issued its Appeal Judgment on 15 January 2021.  The proceedings did not involve Ecclesiastical. The original High Court ruling found that losses arising from the closure of businesses due to the Government’s action in response to the COVID-19 pandemic are not covered by our policies and the FCA confirmed in October 2020 that it did not intend to Appeal that decision.

This means that the Supreme Court Judgment does not change the original High Court ruling that claims on Ecclesiastical’s Business Interruption policies are not payable. We recognise that this has been a difficult and uncertain period for customers and hope the Courts’ rulings provide the certainty and clarity that the Test Case was designed to create.”

You can read Ecclesiastical’s full statement which was updated on the 15th January here:

Association of British Insurers (ABI) Statement and Q&A

A key principle of insurance is that the losses of the few are paid by the many. In a pandemic situation the losses are many and the insurance market is not designed to cover such scenarios. The ABI has published a comprehensive set of Q&As to help people understand what their insurance covers them for.

Other forms of help

The Government recognises that its own actions to save lives and beat the virus have resulted in sudden and acute difficulties for businesses large and small. It has announced several substantial initiatives to help them overcome these, some of which may apply to your holiday letting business. We would encourage our policyholders to take full advantage of these where they can. We recommend checking the Government website for more details on the support available:

Making a claim

Should you ever have cause to make an insurance claim, the process and contact numbers are detailed in the holiday home insurance policy document. You can either phone Ecclesiastical on their claims line 0345 603 8381 quoting your Boshers Holiday Home Insurance policy number or phone us and we will transfer your call to their claims department.

In summary

Unfortunately there is no cover within the policy for loss of income for cancelled bookings due to closure as a result of the COVID-19 pandemic. We realise that this may not be the outcome policyholders might have hoped for but trust that this explains the position at what must be an extremely difficult time for your holiday letting business.

Now that the vaccine is being rolled out across the UK we remain positive that domestic tourism and demand for self-catering accommodation will boom in the coming years.

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unoccupied holiday homes

COVID-19 Unoccupied Holiday Homes

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Temporarily Closed Holiday Letting Properties – Updated 17th March 2021

We appreciate the significant impact that government measures to control the spread of the coronavirus is having on all businesses, not least self-catering accommodation providers and the wider hospitality and tourism industry.

With much of the UK having experienced heavy rain, snow, flooding and prolonged periods of cold / freezing weather over the past few months, risk management is especially important to avoid or minimise losses and disruption to future holiday letting at your property.

We’re here to support you

We just want to reassure you that we‘re here to support you in protecting your holiday letting property in the long term, so that when it’s safe to do so it’ll be ready to open.

So by, following the steps below whilst your self-catering property is closed to guests due to Government guidance, your cover will remain unaffected.

We do however recognise that there may be circumstances where it’s not possible for you to comply with your policy conditions, where this is the case it’s important that you contact us in order that we may discuss and agree an appropriate approach with your insurer.

Arranging for holiday letting properties to be inspected

If you do not live on site or are not local to the holiday let property, we hope that you have been able to arrange for someone in the local area, for instance a neighbour, managing agent, a housekeeper or contractor to visit your holiday let property to make the necessary internal checks on your behalf at least every 14 days.

During the winter period there are often gas safety checks, electrical inspections or other routine maintenance required to be carried out at the property. These visits can also be opportunities to have internal inspections carried out on your behalf if the contractor is happy to do this and report back to you.

At the time of writing, the latest Government guidance (which can be found here) clarifies that whilst a business may be closed to customers, closed premises can still be accessed for certain purposes including:

  • Maintenance, where this is reasonably necessary; and
  • Other work to ensure business readiness to open.

In addition, where it is unreasonable for a person to work from home they are permitted to travel to work, provided this can be undertaken safely and in line with the latest Government guidelines.

Unoccupancy Conditions

Insurers expect that you continue to arrange internal inspections of your property and comply with the unoccupancy conditions. With respect to your holiday home insurance policy underwritten by Ecclesiastical this means that:

  • whilst the property is untenanted it must be inspected internally at least every 14 days by an authorised adult on your behalf;  AND
  • during the months of October to March inclusive, the heating system must be brought into constant operation to maintain a room temperature of at least 7 degrees Celsius throughout the property OR the water must be turned off at the stopcock inside the property and the domestic system drained and other services such as electricity or gas disconnected (other than as necessary to maintain central heating and security systems).

The consequences if you fail to fulfil the above conditions:

If you fail to fulfil the above conditions cover will be to damage by Fire lightning explosion earthquake and by any aircraft flying object (or items dropped from them) vehicle train or animal colliding with the buildings.

We know from many conversations that we have had with policyholders during the pandemic that the majority of holiday home owners have made arrangements to comply with the heating and inspection conditions detailed above.

Ecclesiastical have provided some reassurance and risk management guidance within a statement of intent which has been published on their website:

We hope that this provides the reassurance you need. If this action is insufficient to meet your insurance needs or if you are unsure about any other insurance issues, please speak to one of the Holiday Home Insurance Team on 01237 429444.

Any further updates or extensions will be posted on our website here.

 

Enhancements ended 02/12/2020

The following enhancements were only introduced for the duration of the English national lockdown period that ended on 2/12/20. These have therefore ceased and, for the avoidance of doubt, do not apply in respect of any tiered restrictions:
Premises that are temporarily closed solely due to the COVID-19 outbreak
Buildings that are temporarily closed/no longer in regular use are exposed to different and usually greater risk than occupied premises and premises that are open for regular trading.
Our standard policies define “unoccupied” premises and apply standard restrictions in cover and conditions precedent to cover that need to be complied with. Normally a higher premium is charged on unoccupied premises.
To ensure customers were not unduly penalised for temporary closures solely due to the COVID-19 full lockdown restrictions the normal terms and conditions applicable to unoccupied premises were not applied to premises that were temporarily closed.
Temporarily Closed meant premises temporarily closed solely due to the COVID-19 outbreak (and such premises were not regarded as unoccupied as defined in the Policy) during the period when the dispensations applied.
With effect from 2/12/20 temporarily closed premises must comply with all policy terms and conditions, including (but not restricted to) unoccupied premises conditions, where they fall within the normal policy definition of Unoccupied.
 
Please note:
1) The start of any period of unoccupancy begins from the date the premises first became unoccupied (not from 2/12/20).
2) If a premises qualifies as unoccupied on 2/12/20 the insured must comply with all policy terms and conditions for unoccupied premises immediately from 2/12/20 to maintain cover in line with the policy (unless otherwise agreed or varied by us in writing).
3) Premises that are not yet open to customers/other service users, or not yet fully used in the normal way for that premises, but does have daily occupation in line with normal working hours for that premises (such as admin/office functions are now operating, or there is a daily presence in preparing for normal operations to re-commence), will not be deemed unoccupied.
See the policy definition of Unoccupied for more details.
If in doubt please contact us via your normal channel of communication.

Outstanding risk improvements, periodic conditions and maintenance conditions – re-apply from 2/12/20 and all dispensations cease

We temporarily suspended compliance with risk improvements by the deadline specified by us, and other policy terms requiring regular maintenance or inspection, where these could not be completed during the COVID-19 lockdown because of the restrictions on movement and/or the lack of availability of contractors.
With effect from 2/12/20 the suspension of compliance will cease. Any policy term that requires regular maintenance or inspection re-applies from 2/12/20.
 
If the re-set deadline is not sufficient for any reason please contact us immediately.

Temporary cover enhancements for unoccupied holiday homes (Enhancements ended 02/12/2020)

unoccupied holiday homesUpdate for Boshers holiday home insurance policyholders who are concerned about their unoccupied holiday homes which are temporarily closed due to COVID-19. We would like to reassure our policyholders in light of the most recent government advice about the outbreak of COVID-19. You may be concerned that due to the current lock down and travel restrictions, the usual inspections of your holiday let cannot take place.  You may also be concerned that your policy cover may be restricted.

Recognising the circumstances customers find themselves in, we would not expect to see your ability to claim affected by circumstances over which you have little control. To reassure you, up to and including the 2nd December 2020 in England, Ecclesiastical have agreed that unoccupied premises cover restrictions will not apply to Temporarily Closed premises. These will equally apply to any similar lockdowns in Scotland, Wales and Northern Ireland as per the dates announced locally by the governments in these countries.

A revised letter of intent can be downloaded (as a PDF) here. The letter details the revised temporary cover enhancements for unoccupied holiday homes.

The need for an inspection or check is deferred until travel restrictions are lifted

Where government advice does not allow the necessary travel to complete an inspection or to check on the security devices, the need for an inspection or check is deferred until travel restrictions are lifted to a level which allows inspections to re-commence.

However, if your holiday home is not occupied, this represents a greater risk of significant damage which could delay your holiday home getting back up and running once the current COVID-19 outbreak has passed. With this in mind, where you are able to do so safely, and within the current government guidelines, we would encourage you to consider anything you can do to reduce the risk of damage or loss, particularly through escaping water from heating systems and security of the premises generally.

In respect of Temporarily Closed premises the following risk management measures should be implemented as far as is possible:

(1) you must maintain in full and efficient working order and keep operational all

  • alarms (if fitted)
  • locks and all other protective and security devices preventing access to the premises

(2) Provided any travel required to carry out an inspection is in line with the latest government advice you or an authorised person responsible to you must undertake an internal and external inspection of such buildings at least every 14 days and

  1. rectify as soon as is reasonably possible any defects in the fabric of the building or any protective or security devices or installations
  2. take action to ensure the premises cannot be easily identified as unused or closed down such as removing waste, recycling and accumulations of post.

iii. put in place contingency plans incase the primary person(s) carrying out inspections or responding to alarm activations need to self isolate or are ill so that inspections and alarm activation responses can be maintained by another appointed person

(3) you or an authorised person responsible to you will arrange that either:

(a) the heating system is brought into constant operation and a minimum room temperature of not less than 7 degrees Celsius (45 degrees Fahrenheit) maintained throughout the property or

(b) the water is turned off at the stopcock inside the premises and the domestic water system drained and other services such as electricity and gas are disconnected (other than as necessary to maintain the central heating or security system).

If you have any questions regarding this please do contact us. However in order for us to manage enquiries during a period where we are likely to be busy, please could we ask where possible that in the first instance you email info@boshers.co.uk. We will continue to update you and our website as the situation develops and thank you for your understanding at this difficult time.

Not a Boshers holiday home insurance client yet? We offer specialist holiday home insurance to owners across the UK. If you need an insurance quote for your holiday let call us on 01237 429444. If we are closed use the quote form and we’ll be in touch during the next business day.

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holiday let bookings and coronavirus

Cancelled holiday let bookings and coronavirus – are you covered?

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holiday let bookings and coronavirusHoliday homeowners and holiday letting agents alike are understandably concerned about the potential for the disruption which coronavirus (Covid-19) may cause. Boshers have put together a list of frequently asked questions (FAQ’s). Hopefully these will help to clarify the position with respect to holiday let bookings and coronavirus. This includes details on cover provided by our holiday home insurance policy together with wider implications.

Whilst the primary concern for the disruption which coronavirus may cause is loss of income due to cancelled bookings, owners are also concerned about their liability towards guests and cleaning contractors. Hopefully these FAQ’s will help to clarify what is and isn’t covered under your holiday home insurance policy.

Holiday Let Bookings and Coronavirus – Frequently asked questions?

Q1. Does my policy include any cover for loss of rental income if the holiday home is directly affected by a `disease outbreak’?

There is some cover within the policy for loss of income as a result of a `specified disease’. The definition of specified disease specific to the loss of income cover is detailed in the policy wording. You can view the policy wording on our website here: https://www.boshers.co.uk/holiday-home-insurance/

Update: For clarity, the Specified Disease cover in the holiday home insurance policy was removed for new policies and renewals from 1st September 2020. This is because following significant disruption caused by the COVID-19 Pandemic, our insurers, and in turn their reinsurers, have advised that such occurrences are not within the remit of standard commercial package policies. Whilst we understand that you would wish to include Loss of Income protection against a similar reoccurrence, we are unable to provide cover for any loss damage liability cost or any other sum of whatsoever nature arising from any form of infectious or communicable disease closure. This exclusion also removes the previously provided ‘specified diseases’ cover at or within 25 miles of your premises. These changes are detailed in this update to the policy wording.

Q2. Is Covid-19 a specified disease for the purpose of the policy wording?

No – In common with most other insurers, Covid-19 is not a specified disease in our policy wording. The extension under the loss of income section of our policy for `specified disease’ is based on a specific list of diseases which does not include new and emerging diseases like Covid-19. 

Q3. What about the fact that Covid-19 has been declared a `notifiable disease’ by the Government? 

Even though the Government has declared Covid-19 as a notifiable disease, this does not change the insurance position under the policy. As the chancellor said, you cannot retrospectively change contracts of insurance at this time without threatening the future of the insurance industry.   

Our holiday home insurance underwriter Ecclesiastical will continue to offer cover for `specified disease’, rather than for ‘notifiable’ or any infectious or contagious disease such as coronavirus. We are sorry that it is not economically viable to provide cover for pandemic viruses such as Covid-19, but with this approach you can be clear on what is and isn’t covered.

Q4. What if guests are prevented from taking up their bookings because they have been quarantined due to coronavirus?

There would not be cover under your policy as this is a booking your guests cannot fulfil. You would need to check your booking cancellation terms and conditions to determine how much refund your guests would be entitled to, if any. It may be that they can claim for the cost of the booking under their travel insurance if they have a policy in force. Travel insurance may cover non-refundable cancellation costs, in specific circumstances. These may include medical advice against your guest or a member of your guests’ group from travelling or government advice against travelling. The ABI have issued some information for travellers here: https://www.abi.org.uk/products-and-issues/topics-and-issues/coronavirus-qa/

Q5. What if guests choose to cancel their holiday because they are disinclined to travel because they are concerned about coronavirus?

In a similar manner to Q4 above, there would not be cover under your policy. This is a booking your guests are choosing not to fulfil. You would need to check your booking cancellation terms to determine how much refund your guests would be entitled to, if any. In this instance the guests’ travel insurance would not cover them as travel insurance is not designed to cover ‘disinclination to travel’ , where the Government advice has not changed to advise against travel.

Q6. What if guests currently staying in the property are forced to stay on because our area comes under quarantine?

There would not be cover under your policy as coronavirus is not a specified disease in our policy wording. In any event, it is unlikely that individuals will be prevented from travelling home at the end of their holiday. If a guest contracts coronavirus whilst on holiday it would be reasonable to expect them to return home to self-isolate.

Q7. How about liability cover?

Subject to the terms and conditions of Boshers Holiday Home Insurance policy, the Employers’ and Public Liability cover provides an indemnity to the policyholder if the policyholder is held legally liable for accidental bodily injury or illness arising in connection with the policyholder’s business of holiday letting.  

Q8. Should I ensure that my holiday home is deep cleaned on changeover day?

You have a duty of care towards any visitors to your holiday home to ensure that it is a safe environment. By taking reasonable steps to make sure that your holiday home is cleaned in accordance with Public Health guidelines, you will be fulfilling your duty of care. The best source of cleaning guidance can be found here:

The situation surrounding coronavirus is developing rapidly. It’s best to regularly check the government’s official guidance which is reviewed daily and updated frequently. If you are already a Boshers Holiday Home Insurance client and need any additional guidance on holiday let bookings and coronavirus by all means give our team a call on 01237 429444 or contact us by email. Equally if you have any holiday letting insurance related questions regarding coronavirus that we haven’t answered above, get in touch and we’ll do our upmost to answer them.

Not a Boshers client yet? We offer specialist holiday home insurance to owners across the UK. If you need an insurance quote for your holiday let call us on 01237 429444. If we are closed use the quote form and we’ll be in touch during the next business day.

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Malicious damage to your holiday home – where do you stand?

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We all know that from time to time accidents happen; perhaps someone spills a glass of wine (hopefully not red!) or smashes a glass fresh from the dishwasher. We can accept those and understand that accidents happen to the best of us. However what if someone were to cause malicious damage to your holiday home? Whether the malicious damage is caused by a paying guest or a trespasser, you’ll be faced with making repairs before your next guests arrive.

Do you know where you stand and what you need to do when it comes to your insurance?

What is malicious damage?

In the insurance industry, the term ‘malicious damage’ generally refers to any damage caused to your property on purpose.  There is a clear distinction between this and ‘accidental damage’, in that the damage caused has to be proven as being deliberate, rather than just an accident (for example spilling wine after tripping or smashing a glass that slipped through the hands).

Check your holiday home insurance policy

As specialists in holiday home insurance, our aim is to always give our policy holders the right cover so that should something happen, you know you’re not going to be left significantly out of pocket.

Malicious damage is covered under our policy as standard but is not by all policies on the market, so if you’re not currently insured with us, it’s worth checking your own documents.

The financial implications of your holiday letting property suffering malicious damage can be far reaching. In addition to repairing the material damage to your buildings and / or contents you may also suffer loss of rental income.

What do you do if you think someone has deliberately damaged your property?

Step 1

The first step to take would be to contact the police as soon as reasonably possible so the incident can be investigated. Take photos of the damage as this will assist your insurers with your claim. You also need to let your insurer know about the incident at this point by reporting the claim. If the damage is significant your insurers will appoint a loss adjuster to help settle your claim and appoint contractors to make repairs.

Step 2

Once your insurer is aware of the incident, it’s important that you forward them all communication and documentation surrounding it as soon as it comes through (including any knowledge of any impending prosecution or enquiry in connection with the event), as well providing them with any further information they request in order to process your claim.

The importance of being proactive

Although we’ve outlined the initial steps to take if you feel that your property has been damaged on purpose, it’s worth reiterating that before ever needing to take these steps, you should make sure you understand your insurance policy and what is covered within it.

If you haven’t already, search your policy document for the term ‘malicious’ to ensure you know what’s covered and what isn’t before you need to rely on it.

For more information on specialist insurance cover for your holiday home please give our experienced team a call on 01237 429444.

*This blog post is only intended as an introduction to malicious damage cover.  Please always refer to your insurance policy to gain a full understanding of your current level of cover.

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rebuild cost

Study shows that 1 in 5 people `guess’ the rebuild cost of their property

rebuild costIf your holiday home were to be significantly damaged by fire or flood, do you know how much it would cost to rebuild and restore it to its former glory? If the answer to our question is ‘no’ then you may have the wrong level of buildings insurance in place.

While we hope the worst will never happen, there are more than 37,000 house fires in the UK every year. That’s in excess of 100 every day. While thousands of homes have also been affected by flooding or storm damage in the increasingly extreme weather patterns that have hit our shores in recent years.

In these circumstances, understanding and knowing the true cost of rebuilding your home or holiday home is key. By being informed you can ensure you have the right level of buildings insurance in place.

What does a rebuild cost represent?

The rebuild cost represents the costs you’ll need to cover in order to restore your property; you’ll need to pay the builders, pay for scaffolding and materials, cover the costs of new windows, etc.

Recent research from RebuildCostASSESSMENT.com has found that when setting their buildings sum insured:

  • over a third of policyholders are using the ‘market value’ of their property; and
  • one in five ‘simply guess’.

Thus leaving them potentially out of pocket if they’ve underestimated this figure and the worst happens, or overpaying on their insurance premium if they’ve overstated the costs of rebuilding.

It is a common misconception that buildings insurance relates to the current market value of the property, rather than the cost of rebuilding it, but in reality these figures can often be far apart.

 What do you need to consider when calculating your rebuild cost?

It can be difficult to calculate the exact costs of rebuilding your property, but you’ll need to think about all of the following:

  • The building cost of reinstating your property – this isn’t just limited to the walls of your holiday home, and can include items such as swimming pools, paths, drives, patios, and other things that you might not think about, such as satellite dishes, fences and landscaping.
  • The cost of replacing fixtures and fittings – for example, do you have built-in wardrobes or specialist light fittings that would cost significant sums to replace or restore?
  • Will debris need to be removed from the site? Will you need to hire skips? How much will you be charged for removing waste from the building site?
  • What will be the cost of complying with Local Authority Buildings Regulations or other statutory requirements?
  • Professional fees – to get your property back to where it was before the incident you’ll likely need to consult with engineers, architects and surveyors.  Their fees will also need to be included in your calculations.

How can you make sure that your rebuild cost is correct?

There are a number of ways and methods you can use to calculate the value of your holiday home.  These range from using the ABI online calculator if your holiday home is of a standard construction (http://abi.bcis.co.uk/) through to instructing a RICS qualified Chartered Surveyor (a method used by only 5% of respondents to the RebuildCostASSESSMENT.com survey).

Take the hassle out of setting your rebuild cost with a desktop survey

The good news is that we have teamed up with RebuildCostASSESSMENT.com to offer our home and holiday home insurance clients a discount off of their cost effective desk top surveys.

For more information on your options please take a read of our blog post:

Boshers offer specialist holiday home insurance to owners across the UK. Need an insurance quote for your holiday let? Give us a call on 01237 429444.

 

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Holiday Homes – Getting your Buildings Insurance Right

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Avoiding underinsurance for holiday home owners

As holiday home insurance specialists we understand the industry and know the insurance needs and demands of letting a holiday property; that’s what comes with using a specialist. Please take a minute to read Holiday Homes – Getting your Buildings Insurance Right and give us a call if you have any questions.

We’re here to give you the peace of mind that should the worst happen you’ll be covered and supported. In order to do that we want to make sure that you have the right cover in place. One aspect of your insurance cover you should be checking is that your building sums insured are correct. It’s important that you make a Fair Presentation Of Risk which includes providing the correct sums insured.

The risks of underinsurance

The buildings sum insured is the maximum amount your insurer will pay out if you make a claim.

For this reason it’s vital to get it right and ensure it’s sufficient. It must represent the cost of rebuilding, repairing or even replacing your property should the worst happen.

If you’re underinsured you bear the risk that you may have to fund a proportion of the cost from your own pocket. This can be potentially crippling to your own finances or that of your holiday business.

The cost of rebuilding and not the value of your property

A common misconception is often that your sum insured should represent the market value of your property. For insurance purposes your sum insured should actually reflect the cost of rebuilding your property.

This can be a tricky figure for holiday home owners to calculate so please do take time to consider what that figure should be.

You’ll need to think about:

  • The building cost of reinstating your property; this can include items such as swimming pools, paths, drives, patios and other things that you might not think about such as satellite dishes or fences and hedges.
  • The cost of replacing fixtures and fittings, for example do you have built in wardrobes, specialist light fittings or bedroom furniture that would cost significant sums to replace or restore?
  • Will debris need to be removed from the site and what implication will this have on the cost of restoring your property?
  • What will the cost be of complying with EU legislation Local Authority Buildings Regulations or other statutory requirements?
  • Professional fees; to get your property back to where it was before the incident you’ll likely need to consult with engineers, architects and surveyors.  Their fees will need to be included in your calculations.

Index Linking – make sure the initial figure is correct

Your buildings sum insured is index-linked, which means that it adjusts according to inflation. This ensures your sum insured is increased in line with any changes in the cost of rebuilding your property.

Despite this index linking it of course remains vital that the sum insured was correct in the first place.

Have you made improvements? Let us know

As you make improvements to your holiday home make sure your sums insured represent the increased cost of replacement and don’t wait for your insurance renewal to make the increases.

For example, if you add a hot tub to the garden or update the interior of the property contact your insurer to let them know and make sure they’re covered from day one.

Calculating the cost of rebuilding your property 

Three methods you can use to calculate the cost of rebuilding your home, holiday home or buy-to-let property. Please use one of these to ensure you are Getting your Buildings Insurance right.

  1. ABI Rebuilding Cost Calculator

If your holiday home falls within a range of standard house types the Association of British Insurers offers a rebuilding cost calculator (http://abi.bcis.co.uk/), which will help you to assess the level of insurance you need.

This is however no substitute to instructing a professional Surveyor to prepare a Rebuilding Cost Assessment for insurance purposes. Although there is a cost for these surveys they’ll make sure you have the right level of cover.

2. Desk Top Rebuilding Cost Assessment 

Getting someone to visit your property to carry out a professional assessment can be time-consuming and expensive. However thanks to our partnership with Rebuild Cost Assessment Ltd we can offer you a reliable low-cost service; from a `Regulated by RICS (Royal Institute Of Chartered Surveyors) organisation.

You’ll receive a comprehensive Rebuild Cost Assessment (RCA) report guiding you on how much you should insure your buildings for. This is a fantastic and affordable online service which can protect you, your home, holiday home or buy-to-let property from the potentially severe consequences of under-insurance.

Rebuild Cost Assessment Prices Start from as low as £193.50.

However we have negotiated a SPECIAL DISCOUNT of £20.00 with www.RebuildCostAssessment.com on your behalf. Simply enter the code BOSHERS20 when placing an order online to get your discount. Use the appropriate link below to order your assessment and once receive please forward a copy to your insurance adviser at Boshers.

Nb. Boshers Ltd have no commercial interest in Rebuild Cost Assessment Ltd and we do not receive any financial benefit for the referrals. We have negotiated the discount as we believe this service is a cost effective way to help our clients obtain accurate costs for rebuilding their properties.

3. Instruct a RICS qualified Chartered Surveyor to visit your property and carry out a rebuilding cost survey.

To search for a chartered surveyor in your area please click here: http://www.ricsfirms.com/

What should you do now?

If you need to adjust your insurance cover once you have reviewed your sums insured please contact us. You can call our team on 01237 429444 Monday to Friday.

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Dog friendly holiday home insurance

Dog friendly holiday home insurance – is yours?

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Dog friendly holiday home insuranceDog friendly holiday home insurance is well worth considering if you offer pet friendly self-catering accommodation. The dog-friendly tourism market is one that’s grown exponentially over the past decade. This isn’t surprising considering that a staggering one in four UK households has a dog to call their own.

With more and more of us taking our dogs and other pets on holiday with us, have you asked yourself whether your holiday home insurance is as dog friendly as your accommodation?

Some insurance policies (even those with accidental damage cover included) exclude damage caused by pets. Therefore if a guests golden retriever unwittingly knocked the television off its stand you’d not be able to claim.

When it comes to our own holiday home insurance we’re striving to offer owners an unrivalled range of cover. So we of course include your guest’s pet causing an accident too. However there are a few things for you to consider before welcoming dogs into your holiday home.

Things to consider with your insurance when welcoming dogs

What’s covered?

When you welcome dogs into your holiday home this will inevitably lead to a heavier level of wear and tear over time. This won’t be covered within an insurance policy, which is why some holiday homeowners will make an additional charge for those bringing dogs with them to cover the costs of the additional time it may take to clean and remove dog hairs.

Your insurance is there for a one-off identifiable event; if for example a dog were to knock some items off of a shelf causing them to fall and shatter, this would be covered under our policy, but not if your insurer excluded damage by pets from theirs.

Minimising the potential for problems

If you welcome dogs to your holiday home, you’ll want to be sure that their owners know and understand their obligations before they arrive.

Consider outlining a few ground rules at booking such as:

  • Setting a maximum number of dogs allowed per booking.
  • Indicating that dogs can’t be left alone or unsupervised in the holiday accommodation.
  • Dogs are not allowed in the bedrooms or on furniture.
  • That dogs are up to date with vaccinations, worming and flea treatments.
  • That dogs are in good health.

You may also want to communicate this in your welcome pack to ensure everyone is clear on where the dog can and can’t go within your holiday home.

Advice for pet friendly accommodation

If you’ve been welcoming pets for some time you’ll have no doubt found the best way to accommodate them.  If you’re currently considering it then here’re a few tips. They’ll help ensure wear and tear is kept to a minimum and you’re ready to greet a man’s best friend.

  1. Consider having tiled or wooden flooring on the ground floor of your property; it’ll be far easier to clean up hairs and mud than that beautifully laid carpet!
  2. Stair gates aren’t just for children; they can also be used to stop pets making their way upstairs!
  3. Some dogs like life on two paws as much as they do on four; ensure that furnishings, ornaments and vases are kept in places they can’t be knocked down or seized upon for a good chew!
  4. Fix flat screen televisions to the wall rather than placing on consoles; a broken television is one of the most common household claims in the UK.
  5. Use a vacuum cleaner with a “HEPA” (High Efficiency Particulate Air) rated filter to reduce allergens which can affect people who are susceptible to allergies or asthma.

Welcoming guests with assistance dogs to your holiday home

To help you understand the rights of guests with assistance dogs, The Equality and Human Rights Commission and VisitEngland have produced an informative publication mentioned in our previous article, link below:

Boshers offer specialist holiday home insurance to owners across the UK. For information on how our dog friendly holiday home insurance can help protect your holiday letting property, call us on 01237 429444.

 

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Holiday home insurance cost

How much should holiday home insurance cost?

Holiday home insurance costA question that all holiday homeowners will have asked themselves, or perhaps wonder when their insurance is up for renewal. How much should I be paying and is it value for money? So how much should your holiday home insurance cost?

When it comes to insurance, the true cost is the price you would pay should the worst happen. Especially if you find you’re not fully covered. What would you do, if for example your holiday home were to become uninhabitable? This could be due to a fire or the severe flooding we’ve seen across the UK in recent years.

In this case having the wrong insurance in place at a lower premium would be a false economy. Thus a proportion or at worst all the cost of restoring your cottage potentially falling at your feet.

For that reason, we’ve taken a look at some of the key areas you need to focus on when arranging holiday home insurance.

Is your insurer aware that you let your holiday home to paying guests?

Most conventional home insurance policies exlude cover for letting to paying guests. Therefore relying on a home insurance policy to cover your second home for holiday letting is false economy. In the event of a claim the policy may not provide you with the cover you need.

How much would it cost to rebuild your holiday home?

Understanding the cost of rebuilding your holiday home, rather than its current market value is very important. The cost of rebuilding your holiday home is central to ensuring you have the correct buildings insurance in place. This is the maximum amount that your insurer will need to pay out should the worst happen, and therefore the amount you should be insured up to. Under declaring the cost of rebuilding your holiday home to save premium could mean you are underinsured. The effect of this is that you may have to meet a proportion of the cost of a claim yourself. The amount would depend on the degree of underinsurance but far outweigh any saving made on your holiday home insurance cost.

If your holiday home falls within a range of standard house types the Association of British Insurers (ABI) have a useful rebuilding cost calculator to aid you in getting the right figure. You can read more about how to get your holiday home insurance buildings sums insured right here:

How high is your Public Liability cover?

With so many guests visiting holiday homes across the UK each year, not having an adequate level of Public Liability insurance is a potential risk. Whether there’s been a slip that resulted in cuts and bruises, or a far worse accident, this area of cover will keep your holiday cottage protected against the legal costs and any compensation that may occur.

Our own policy covers our holiday homeowners for up to £10 million, so it’s worth checking your own Policy to review your current level of cover.

Loss of rental income

Holiday homes come with specialist circumstances and therefore need specialist insurance.  A key component of this is loss of rental income, which steps in to support you if your holiday home were ever to become uninhabitable due to fire, flood or storm damage.

This cover ensures you’ll not lose out on the rental income you’d otherwise have gained during that period, which could be catastrophic, particularly if your holiday cottage were to be out of action during the peak summer months.

We encourage all holiday homeowners to check that they have this cover in place, and that they have an adequate level to cover their current rental income.

Our own policy offers our holiday homeowners £75,000 of loss of rental income over two years as standard. Is your rental income higher? We can extend your cover to reflect that.

Accidental damage and theft even whilst occupied by guests

We’ve covered off some of the larger and key areas of cover that make up your policy, but there can be some added extras that support you and really add value to the premiums you pay each year when you need to call upon them.

Guests bring with them plenty to think of when it comes to insurance; what happens if they break something? Stain that new carpet or rip those beautiful curtains? How about if something were to be stolen whilst your guests are staying?

As specialists in holiday home insurance for over 25 years, we understand the day to day running of holiday cottages. Our holiday home insurance policy reflects that in the broad range of cover we provide. Whether it’s accidental damage, covering you for that theft or getting you back on your feet after a significant event, we’re here to support you.

Boshers offer specialist holiday home insurance to owners across the UK. Need an insurance quote for your holiday let? Give us a call on 01237 429444.

 

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insure your home and holiday home

Why insure your home and holiday let together?

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insure your home and holiday home As specialists in holiday let insurance we advise thousands of holiday cottage owners across the United kingdom. Providing them with policies tailored to the unique needs of their holiday homes. We also offer many of them that same level of service when it comes to insuring their own home. Whether you live onsite or miles from your holiday let, there are benefits to having your insurance under one roof. So here are a few good reasons to insure your home and holiday let with one insurer.

Simplicity is bliss

Having a single provider brings with it simplicity. All of your policies can be brought in line with a single renewal date. Meaning both payments can be taken at the same time. This can bring peace of mind, remove uncertainty and reduce the level of admin you need to undertake in relation to insuring your home and holiday let.

A lack of grey areas

This simplicity extends to when you need to make a claim. If you live on the same site as your holiday cottage(s) there can sometimes be a degree of confusion as to who you need to contact. For example, if an accident were to occur between your house and your holiday home, where is the boundary drawn and which policy should you claim under?

Having it all under a single provider allows you the comfort of knowing who to contact, no matter what the circumstances or the query you may have.

What if you live onsite?

Holiday letting can take many forms, such as an annexe attached to your home, or a complex of holiday cottages in your grounds. If you live onsite it is almost always best for you to insure your home and holiday let property with the same insurer so there is no doubt who will deal with a claim when one arises.

What if you live miles away from your holiday cottage?

It’s not uncommon for holiday homeowners to live a considerable distance from their cottage.  In this case, having your home and holiday home insurance with a single provider can be particularly beneficial when you use the property for your own vacations. In this example you’ll always know that anything you take with you such as personal possessions, valuables and sports equipment including bikes can be covered without ambiguity.

Continuity of service

The good news is when you contact us you’re likely to speak to someone you’ve dealt with before. Our holiday homeowners are never passed from pillar to post; no matter what your question or which policy you’re wanting to talk to us about, you’ll speak to an experienced member of the Boshers team.

The benefits of specialism

We specialise in holiday home insurance and speak with cottage owners every day of the week. We bring our knowledge and experience to ensure that your home and holiday let both have the most suitable cover. Should the worse happen, we always aim to support you in getting back on your feet. Our understanding of your circumstances plays a big role in ensuring we’re able to achieve this. Speak with our team today. They’ll highlight other reasons to insure your home and holiday let together through Boshers.

Boshers offer specialist holiday home and property insurance to holiday cottage owners across the country. For more information on our policies have a look around Boshers website. For a quote or to ask any question please give our team a call on 01237 429444.

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Insurance Premium Tax

Insurance Premium Tax (IPT) increases again from 1st June 2017

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Insurance Premium TaxIn the 2016 Autumn Statement, the Chancellor confirmed an increase of 2.0% in the standard rate of Insurance Premium Tax (IPT). [The tax paid each time an insurance policy is purchased in the UK]. The increase is effective for new policies and renewals due on or after the 1st June 2017.

The standard rate of IPT is therefore rising from 10% to 12%. This is the second increase in the past 12 months.

This change will affect the majority of policies purchased by private individuals and small businesses including insurance for self-catering holiday lets where the risks are located in the UK.

Insurance Premium Tax increase effective 1st June 2017

Affected insurance policies with a start date after 31st May 2017 will have IPT charged at the new rate. This will increase the cost of a Holiday Home Insurance policy with a net premium of £500 by £10.00 bringing the total premium to £560 including Insurance Premium Tax at 12.0%.

Higher rate IPT remains unchanged at 20% and applies to:

  • travel insurance
  • warranties for some mechanical and electrical goods

According to the Treasury the IPT increase will bring in an additional £4.06bn for the Treasury by 2022*. This was the second largest revenue raiser in the Summer Budget.

James Dalton, director of general insurance policy at the Association of British Insurers (ABI), called on the government to halt the increase.

“This tax penalises hard working families, as well as businesses, who have done the right thing by taking out insurance to protect against many of life’s uncertainties,” he said. “This latest hike must be the last. The next government must freeze this tax, to give hard working households and businesses a break.”

Insurance Premium Tax was first introduced to the UK in 1994. The rise on the 1st June is the 6th increase in the standard rate since its introduction:

  • From 1 October 1994, a single rate of 2.5% was charged
  • 1 April 1997: increased to 4%
  • 1 July 1999: increased to 5%
  • 4 January 2011: increased to 6%
  • 1 November 2015: increased to 9.5%
  • 1 October 2016: increased to 10%

*This is according to HMRC’s own figures summarising the impact of the move.

Boshers offer specialist holiday home insurance to owners across the UK. Require a quote for your holiday apartment, cottage or complex? Please give us a call on 01237 429444.

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