Holiday home insurance plans are exclusively meant for holiday homes or houses of customers which are used occasionally when the family visits them during the vacations. Such houses follow the same norms that a normal house insurance policy would follow.
These include the distance of the house from the nearest fire station, what materials is the house made from, what is the total value of the house, what is the age of the house etc.
However the reason why insurance companies have come up with a separate holiday home insurance plan is because of the demand for such plans and the insurance premium amounts which are higher than an average home insurance premium of a normal house. There are several factors that have been attributed to the insurance companies giving a new range of plans especially for holiday homes.
Lets us try and understand why a holiday home insurance plan is separate from a normal home insurance plan. The first reason is that when one considers a normal home insurance plan, one of the factors that one has to bear in mind is the distance of the holiday home from the nearest fire station or a source of water that can effectively be used to quell fire in case there is one reported.
In case of holiday homes, the risk element increases because they are not always occupied and hence in a situation when the holiday home catches fire in the absence of everyone, then it is almost an assured claim because by the time the fire will be doused, there would have been a considerable delay and it would have caused considerable damage. Likewise there is a persistent threat of robbery and theft which is higher in case of holiday homes because of their seasonal occupancy and hence the risk to cover them is higher and hence the insurance premium is too.
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