If you’re in the process of buying a lodge, you’re going to need to think about lodge insurance. Whether you are going to use your holiday home, or if you are going to let it to someone, it’s time to think about protecting against the worst-case scenarios, so lodge insurance is a must.
It’s crucial to look at different types of insurance. For example, basic caravan insurance won’t cover you for renting out your lodge. You may have to add cover on top of any content there. What’s more, if you are going to be making money from your lodge, you may want to take out some form of business insurance.
In any case, let’s take a look at what you can expect from insurance, as well as what you need to know before you buy.
LOOKING FOR A LODGE
Why Get Lodge Insurance?
It is a good question to ask, but you must ensure your property is covered by one or more policies. Here are just a few reasons why you may wish to cover yourself with caravan and lodge insurance:
- You can protect against theft of or damage to your contents
- You can protect against damage to your property
- You can ensure your property is covered for accidental damage
- You can make sure your interests are protected if someone has an accident at your property
- You can cover yourself for any loss of business if you let your lodge or caravan
These are just a few good reasons why insurance coverage is such a good idea. If you are going to be away from your property for long periods, it makes even more sense. You won’t be around to look after your lodge or caravan for extended periods – so why risk paying out for anything bad happening on-site?
Compare Lodge Insurance
It’s easy to think that ‘price comparison’ isn’t all it’s cracked up to be. There are so many comparison websites out there now that we can get a little tired of seeing the same old adverts again and again. However, don’t be too quick just to assume they won’t be worth your time.
Price comparison sites are fantastic for breaking down the different policies and tariffs most carriers offer. Most sites will let you enter details about your lodge and will offer you a range of options after only a few minutes. It’s a great way to look at the wider market.
Most sites, too, will give you a breakdown of the difference between policies. It won’t just be the price! Look for features you need from your Caravan and Lodge Insurance, such as contents cover, accidental breakdown, and more.
Do also be prepared to do a little digging outside of price comparison. Some big insurance carriers have made a point of avoiding these sites, which means you will need to enter details directly through a few extra sites. However, if it is in the name of finding the best deal, it is worth doing.
Types of Lodge Insurance You Might Need
Let’s start thinking about the different types of cover you are going to need when setting up Caravan and Lodge Insurance. You’re going to want to protect your assets, as well as the content. But what if something goes wrong and it’s your fault? It is always better to be safe than sorry. Here are a few caravan and lodge insurance policies you may wish to look for when shopping around.
Holiday Home Insurance
Many insurance carriers offer policies that specifically cover holiday homes. These are worth exploring, as they will cover properties that are generally not used as second homes. For example, lodges, flats, chalets, and even villas can be covered. This type of insurance will be set up for people who are letting their properties out, too, which means you will be covered for property integrity and even contents to a certain extent. However, all policies are different, so do make sure you compare.
These policies are generally recommended for static caravans and lodges because they are often going to go unoccupied. Standard home and buildings insurance will generally require you to be on your property for extended periods. The general grace period is 30 days. If you are going to be out of your property for longer than that at any one time, you’re going to need to look at holiday home policies.
Contents Insurance
Static caravan and lodge insurance policies can often cover contents insurance. However, in the rare case that they are not, you will certainly need to top up. Contents insurance is crucial if any of your items are left in your lodge or caravan while you’re away. They could be at risk of accidental damage, theft, or even malicious vandalism. For that reason, make sure that you’re covered, and value your content accordingly. Otherwise, you could be left counting a lot of pennies.
Caravan Insurance
If you own a static caravan, you will likely find caravan insurance offers you some protection. This type of insurance is great if you want to make sure you are backed up for wear and tear, repairs, and in the event of vandalism or theft. However, you may choose a holiday home policy that covers you for what you need, instead. There are a few things you will need to do with your caravan to qualify for these policies, too. For instance, you will need to make sure you have made adequate efforts to secure your caravan correctly. This will not only affect the price of your policy but whether or not you will be accepted.
Business Insurance and Loss Protection
If you are going all-in on letting out your property, think about getting some form of income protection. While some insurance policies will cover you, it may be worth looking at more specialised business cover. This, at the very least, will protect you if your home becomes inhabitable beyond your control, or if you lose business for any other reason. Again, be ready to compare policies, and make sure your lodge or static caravan is adequately covered.
Public Liability Insurance
If you’re running a business such as a publicly rentable holiday home, you are going to need to insurance. Not only should you safeguard your assets and your contents, but you should also be ready to protect yourself against any potential claims or legal action.
Public liability cover will make sure that you have financial backing in the event of a tenant injuring themselves – or worse – at your property. If an accident occurs at your premises and you are at fault, you may be expected to pay large legal fees or damages to your tenants. While we hope you make sure your property is safe and secure enough always to avoid these circumstances, it is better to stay protected.
Most public liability insurance policies will cover you over a reasonably large scale. However, you will need to prove to carriers that you are doing all you can to offer a safe service to your tenants.
Lodge Insurance Costs
Unfortunately, we have no way of telling you how much your caravan and lodge insurance is likely to cost in the long run. Your policies and any excesses will vary depending on the condition your property is in, where it is located, and more. This is why insurance carriers ask many questions of you when you first apply for a policy. It is to calculate how much cover you require, and how much-said carrier can charge for protection.
The value of your holiday home will impact on how much you pay in insurance fees. For that reason, you can expect to pay more for a new lodge or for one higher in value. It stands to reason.
Once again, the best thing to do if you are worried about lodge insurance costs is to research the market. Make sure you compare deals and rates from carriers on comparison sites, as well as those which choose not to participate. Ultimately, insurance is always worth paying for. The cost is a small one compared to cover compared to the worst possible case scenario. Even the most careful property owners have no say over what could happen at any time.
Conclusion
Whether you buy lodge insurance, always be sure to cater to all bases. Having to pay out for damage repair, loss of contents or even legal fees can result in charges skyrocketing. So It is always best to pay a small amount each month to make sure you are covered in the worst-case scenario.
Many park home operators will require that you are insured before you set up with them. We have to agree. Whether you are owning or letting, protect what is yours, and don’t hold back on lodge insurance. For further reading see our article on ‘What to Remember When Buying a Holiday Home’.