Fire, theft, accidental damage, storms, subsidence?… water is the biggest threat.

According data from Legal & General, insurance companies paid out £730 million for water-related claims last year. This figure is more than double the £370 million for burglary claims.

Nearly 1 in 5 claims made on buildings and contents insurance is for damage caused by escape of water, costing £2 million every day. Last year, 371,000 such claims were made with the average claim just under £2000, compared with £1,400 for burglary claims. However, some water damage claims can run into tens of thousands of pounds. *Source ABI.

Types of water damage risks

Unfortunately, too many property owners underestimate the distress and damage that water can cause. Water really can be your property’s number one enemy, potentially causing a whole host of problems from rising damp to flooding; burst pipes to toxic mould; and even, in some cases, subsidence.

• flood risks – overflowing drains, surface water and flooding from a local watercourse can cause significant damage;
• rising damp from blocked drains, water leaks and water ingress over a long period can cause structural damage;
• water from leaking pipes or appliances can cause serious damage to the building if leaks are not located and repaired quickly. Wood rot, damp and mould can be an expensive problem to locate and repair;
• undetected underground water leaks can cause subsidence and structural cracks;

Tips to avoid water damage

So, what preventative measures can you take to make sure your property stays as dry and as claim-free as possible?

• probably the most important point is to know where your stopcock is;
• keep pipes and water tanks well insulated – burst pipes may be caused when ice forms in the pipes, then, as it thaws the pipe splits causing water to flood your property;
• repair any leaks as soon as you see them – and also check for any loose or poorly fitted plumbing joints or signs of water underneath washing machines;
• always make sure your holiday home is well ventilated – invest in a dehumidifier if need be;
• clean gutters, roofing and drains regularly, and check for any slipped or loose roof tiles where water could enter;
• check that any air bricks are clean so that ventilation can get under your property.

Will the insurance pay out?

Most insurers should pay out for water damage perils as standard. However, there are exceptions. If you live in an area with a high risk of flooding, your insurer may specifically exclude flood-related damage. Also, if you have failed to declare any flood risks associated with your property or have misrepresented facts, your cover could be invalidated.

And do note that in some circumstances, home insurance for second homes may not cover escape of water damage due to freezing, if you have failed to comply with the winter heating warranties in your policy.

For other types of claims, particularly those related to weather, you should make sure your property is kept in a good state of repair to ensure that claims aren’t turned down due to poor maintenance.

Never underestimate the damage that even a small amount of water can cause. Carrying out regular checks and maintenance on any vulnerable areas may help you prevent a small leak turning in to an expensive nightmare.

Related posts:

1. Burst pipes: the biggest threat to your holiday home
2. Floodcheck: Prevent water damage at your holiday home
3. Increased water charges following a burst pipe

However, once snow starts to thaw, pathways are left covered with compressed ice for weeks as temperatures remain below freezing.

What steps should you take to clear the snow and ice outside your holiday home?

Can you be sued if you don’t clear snow and ice from outside your holiday home?

Due to the ‘compensation culture’ there remains a deep suspicion in the UK that homeowners might end up being sued by pedestrians who slip or fall on snow or ice outside their property.

The Government issues ‘Snow Code’ guidelines on how residents should approach the clearing of pavements outside their homes.

The snow code

“Don’t be put off clearing paths because you’re afraid someone will get injured. Remember, people walking on snow and ice have a responsibility to be careful themselves. Follow the advice below to make sure you clear the pathway safely and effectively. Don’t believe the myths – it’s unlikely you’ll be sued or held legally responsible for any injuries if you have cleared the path carefully”.

Note the term unlikely. Interpret this as you wish, but it could be assumed that if paths aren’t cleared properly, property owners could be liable for injuries.

Clearing snow & ice from outside your holiday home

During snow and icy conditions you are required to take “reasonable steps” to ensure paths on your own property are safe, especially if you have guests staying at your holiday cottage. Easy, safe access will also be appreciated by guests – a slip or injury isn’t a good start to the holiday.

• Clear the snow and ice early in the day;
• Use salt or sand – not water. If you use water to melt the snow, it may refreeze and turn to black ice.

Are you insured?

There is always the risk that if a guest or postman slips and injures himself on your path, you could be sued. A comprehensive insurance for second homes policy should include public liability insurance that protects against such events. You should check that this extends to cover commercial holiday letting as some policies don’t.

Related posts:

1. Does home insurance cover snow damage?
2. How to prepare your holiday home for winter
3. Holiday home swimming pool safety

The cost and inconvenience caused by the escape of water can be extensive. During the big freeze in December 2010 there were 103,000 property damage claims for burst pipes, at a cost of £680m. The average insurance claim is estimated at £25,000 however, £100,000+ repair bills for water damage to the buildings, contents and drying out are not uncommon.

Many burst pipes can be avoided by taking some simple preventative measures when holiday cottages are left unoccupied.

Floodcheck – flood and water damage prevention

The damage caused by water can be significantly reduced by minimising the amount of water that can escape. Simply turning off your water supply when your holiday property is unoccupied is recommended. Another solution is the Floodcheck flood prevention device.

From the manufacturer
“The Floodcheck Auto valve is a flood prevention device which protects your property from internal flooding by monitoring your water supply. It automatically switches off your main water supply if it detects a water leak, preventing water damage”

Features

15% discount for Schofields policyholders

Schofields have negotiated for our clients to receive a 15% discount on all Floodcheck products. Please contact us and we will advise you on how to claim your discount.

Preventing and minimising water damage can save an enormous amount of distress, inconvenience and holiday cottage insurance claims.

Related posts:

1. How to prevent frozen water pipes at your holiday cottage
2. How to prevent frozen pipes and bursts
3. Increased water charges following a burst pipe

I’m sure many owners have their own ideas on how they would like to respond to these enquiries – along the lines of “Don’t ask for a discount if you are easily offended!”.

If you are new to holiday letting and don’t have the advantage of historical data on booking trends, it’s difficult to know when and when not to discount. Here are some ideas.

Discount culture

In the current economic climate many people think they can haggle on price and get a discount, especially the Groupon/Moneysavingexpert enthusiasts. Holidaymakers are clearly looking to get their holiday budgets to work harder for them this year, with price being one of the top holiday considerations.

Many holidaymakers send the same enquiry to multiple properties (this is an option on some rental websites) asking for a discount or best price. Don’t automatically offer a discount if it doesn’t suit your objectives to maximise occupancy/income.

Pricing

Competing on price only works if you can do volume. The basic laws of supply and demand apply to holiday rentals – there are only 52 weeks available to let in the year, less if your tourist industry shuts down out of season. Be careful about discounting peak summer weeks early on in the booking season that could potentially let twice over. Remember, historically July is also a peak booking season when holidaymakers are looking for last minute holidays, so don’t be too concerned if your property doesn’t book straight away.

This image from Google trends shows the demand for ‘cheap holidays’ searches peaks in January and July each year. The same trend applies to generic ‘holiday’ searches.

There is also another good reason not to compete on price (discount), research shows that people’s perceived value tends to increase for expensive items. You have to back this up though with your ‘high quality’ accommodation and service, though.

Many owners also have the opinion that ‘discounting’ attracts a different type of guests which require more work.

Rather than compete on price, an alternative is to highlight why you are different/better than your competitors. How will guests get better value? – free baby equipment/beach toys, free Wi-Fi, the best view on your complex, private parking or free health club use for example.

When to discount

Discounting is pointless if you make a loss or minimal return for the effort.

However, discounting can help fill vacancies in certain circumstances, for example;
- offering a ‘late deal’ discount 2/3 weeks before the available dates;
- to fill a booking gap;
- for monthly winter lets;
- discount a ‘hard to sell week’ that you know from experience is difficult to let.

If you do get ‘best price’ and ‘discount’ requests for popular weeks, a good reply is to advise that “you are welcome to contact us a few weeks before the dates and a late deal discount may be available, however the dates are unlikely to still be available due to demand”.

It would be interesting to know if agencies also get requests for discounts or is it just private/direct enquiries who ask/expect one?

How do you deal with discount requests?

Related posts:

1. Letting Guests Use Bicycles
2. 5 risks to avoid when holiday letting
3. Advice & resources for letting a holiday home

Claims costs:
Insurers paid out £1.4bn in ‘big freeze’ insurance claims in the UK between 24 November to 31 December 2010, up from £700m for the previous winter of 2009/10.

• 467,000 – the number of claims that UK insurers dealt with
• £900m – the cost of property damage claims, 190,000 claims in total
• 103,000 – property damage claims were for burst pipe damage, at a cost of £680m.
• 12,000 – the average number of claims a day, at an average daily cost of £38m

Insurance provides cover for a list of specified perils. Policies do not provide unlimited cover for every eventuality or maintenance related issues. With this in mind it’s important that holiday home owners take all reasonable precautions to prevent a loss or damage and keep their property maintained.

As insurance does not cover all eventualities, property owners are liable for uninsured losses and general ‘wear and tear’ so taking precautions can prevent you suffering unnecessary expenses.

Here are useful of tips and advice to protect your holiday home in winter

Preventing and dealing with burst/frozen pipes

How to prevent frozen pipes and bursts
What causes pipes to freeze and burst? – Burst pipes are the biggest threat that UK holiday homes face. However, many claims can be prevented by taking some simple precautions to prevent pipes from freezing and bursting.
What to do when pipes freeze or burst – If your pipes do freeze there are several steps you can take to prevent them splitting, but if they do burst here is what to do.
Does holiday home insurance cover plumbing repairs? – If you do have a burst pipe then the damage caused by the ‘escape of water’ is covered (subject to the policy terms) but who is responsible for the repairs to pipes?
Boiler breakdown insurance for self catering holiday cottages – Boiler breakdowns aren’t generally insured under a holiday homes policy, so is it worth taking out a separate home emergency boiler breakdown insurance policy?

Storms
Resources to monitor UK weather warnings & flood alerts – Here are some excellent resources for keeping up to date with weather warnings and flood alerts.
Does insurance cover a fallen tree? – Gales often cause trees to come down, but what if the tree causes damage? Who is responsible for the removal?
Does insurance cover storm damage to fences & gates? – Fences are also frequently damaged in storms, but are they covered?
Does home insurance cover snow damage? – Heavy snow can put a lot of weight and pressure on gutters damaging them, water ingress from thawing snow also causes damage. Here we clarify what is and isn’t covered.
Flood & storm insurance for property abroad – If you own a property abroad and are insured by a foreign insurer then there are certain things you should be aware of that could leave you uninsured. Storm definitions, minimum rainfall and wind speed requirements for a claim to be valid and strict claims notification deadlines. This article points out what you should look out for.

Flooding
How to prepare for flooding – Flooding can be a problem in UK holiday home hotspots, here is advice on how to prepare if you are at risk.
What to do if your holiday home is flooded – Steps to take if you are flooded.
How to check if a home is at risk of flooding – Looking to buy a holiday home? Check if it is in a flood area before you commit as you could have problems insuring it.

Maintenance
How to prepare your holiday home for winter – An extensive list of simple maintenance tasks that can prevent a loss or damage and unnecessary expenses.
French house insurance chimney sweeping clause – Does your French insurance policy require an annual chimney sweep? You could be uninsured for a chimney fire if you fail to do so.
Holiday home oil theft warning – The rising cost and short supply of domestic heating oil has seen a rise in rural oil thefts. How to protect your tank.
Does overseas home insurance cover mould? – Overseas properties that are left over winter often suffer from mould. Here are tips on how to prevent it.
Prevent carbon monoxide risks at holiday lets & cottages – The silent killer. Ensure you and your guests are safe.

Security
Holiday home security advice – Occupied and unoccupied holiday cottages are often an easy target for burglars. Here are some tips to prevent break-ins.

Please add your tips in the comments below…

Related posts:

1. How to keep your second home safe this winter
2. Holiday home insurance winter unoccupancy clause warning
3. How to prepare your holiday home for winter

Office opening times:

26th December Closed (Bank Holiday)
27th Closed (Bank Holiday)
28th Open
29th Open
30th Open
2nd January Closed (Bank Holiday)
3rd Open as usual

All the team at Schofields would like to wish all our clients a very Merry Christmas and a Happy New Year.

We hope that you all enjoy a safe and incident free Christmas. In the unfortunate event that you have a claim please see your policy document and read our claims advice.

Merry Christmas and a Happy New Year from all the team at Schofields.

Related posts:

1. Taxman targets holiday home owners
2. Ash cloud: travel advice, updates and your rights
3. Do open windows invalidate holiday cottage insurance?

Last winter alone saw 103,000 property damage claims for burst pipes – at a cost of £680m. Unfortunately, many of these claims could have been prevented if second home owners had taken some simple measures to prevent pipes from freezing and bursting.

At Schofields, we experienced numerous instances where it could be argued property owners were negligent. For example;

• owners leaving their holiday home unheated and their water supply on when temperatures were as low as -15C;
• owners turning the heating off and leaving the water on when departing the holiday property in freezing temperatures because the heating oil level was low;
• property owners failing to inspect their properties during and after the ‘big freeze’, even though they hadn’t taken any precautions to prevent bursts. Early discovery of frozen pipes and bursts can significantly reduce damage.

Consequently, following significant losses, holiday home insurers have included policy conditions, exclusions and winter warranties that apply when holiday homes are unoccupied.

Unoccupancy conditions, exclusions and winter warranties – check your policy

You should check your most recent policy wording to see what unoccupancy conditions, exclusions and winter warranties apply to you. Ensure you fulfil your insurance obligations to avoid being uninsured.

At Schofields we urge;

Winter heating/water drain down

Whilst the buildings are unoccupied between the 1st November and the 31st March, the central heating system is kept running 24 hours a day to maintain a minimum temperature of 55F (13C), unless all water and gas supplies are turned off at the mains and all water and central heating systems are drained.

Storage heaters

If the property is heated by storage heaters, from the 1st November to 31st March inclusive, the water is turned off at the stop cock within the property when the holiday home is unoccupied.

Note: If you fail to comply with your policy terms, insurance will become invalid in respect of loss or damage resulting from escape of water.

No excuse

There are no excuses for not taking precautions by either adequately heating your property or turning off the water supply when your holiday cottage is unoccupied. In-fact, many heating systems can still operate with the mains water turned off (consult a heating engineer for advice) so you could do both. Remember, as a policyholder you have a duty to take all reasonable steps to prevent loss/damage.

Insurance is to prevent the unforeseen, not the inevitable. When unprotected, water pipes are exposed to sub zero temperatures the inevitable happens – a water damage claim.

What steps would you take to prevent damage if you weren’t insured?

Make sure you comply with your holiday home insurance unoccupancy conditions and winter warranties. If you have any queries please do not hesitate to contact our advisers.

Related posts:

1. Warning: French house insurance chimney sweeping clause
2. Holiday home oil theft warning
3. Holiday home burst pipes warning

The last couple of winters in the UK have been extremely harsh. It’s estimated that insurance claims for last winter’s storm, snow and water damage exceed £1.4 billion (according to the Association of British Insurers).

Resources to monitor severe weather warnings and flood alerts

Many holiday homes in the UK are located in rural locations, exposed to the elements and are at risk. Monitoring severe UK weather warnings and flood alerts can help prevent damage at your property.

Weather warnings
To monitor the UK forecast and severe weather warnings visit the Met Office.
You can also keep updated on any regional news and weather warnings by following the Met Office on twitter @metoffice.

Flood warnings
To monitor up-to-date information about flood warnings in force, monitor the river or sea levels in your area and check out the latest flood risk forecast for your county visit the Environment Agency. You can also sign up to the Floodline Warnings Direct service to receive warnings by phone, text, email or fax 0845 988 1188.

Keep updated on any regional flood warnings by following the Environment Agency on twitter @EnvAgency. The Environment Agency also has regional twitter accounts for flooding updates by location.

Also, follow BBC Weather for twitter weather updates @bbcweather and the Scottish Environment Protection Agency @SEPAView

Preventing damage

Although insurance protects against unforeseen storm and weather damage, homeowners have a duty to maintain their holiday homes and take reasonable steps to prevent loss or damage. It is not uncommon for an insurer to refuse to pay out for a weather-related home insurance claim where a property hasn’t been maintained to a sufficient standard.

We recommend holiday home owners check their homes are in a good state of repair and ready for winter – use this winter holiday home maintenance checklist for tips

Review your insurance cover

It might be a good time to review your insurance cover. Check with your insurer if you are covered for storm damage or if you have to take out additional accidental-damage to buildings cover. How does your insurer define a storm? Do certain levels of wind speeds and rainfall have to be recorded in order for a claim to be valid?

If you suffer storm damage:
-Contact your insurer as soon as possible for claims advice;
-If necessary, arrange for temporary repairs to prevent further damage and mitigate the loss;
-Keep receipts and take photos, as they will form part of any claim;
-Keep safe.

Related posts:

1. Flood advice for holiday home owners
2. Holiday home flood risk: How to prepare for flooding
3. Flood & storm insurance for property abroad

But what about larger creatures such as squirrels, foxes, rats and mice? While some may be perfectly behaved house guests, some may wreck havoc if they are left to their own devices.

What can you do to prevent damage by animals at your second home? will house insurance cover the damage?

Damage caused by domestic pets

In Britain, we are known for our love of animals, and marketing your holiday let as ‘pet friendly’ can increase bookings from pet owners who wish to take their companions on holiday with them. But pets can prove a costly companion through the damage they can cause to holiday homes – even if owners assure you pets are ‘well trained’.

Costs arising from chewing, scratching or fouling by household pets can be significant, but very few holiday home insurers will cover damage caused by pets.

If you advertise your holiday let as allowing pets, then you must be prepared to accept that there may be some damage involved. Your holiday letting agreement should clearly set out that damage (and infestations) by pets must be paid for. Taking a damage deposit from guests with pets could also be a safeguard.

The good news is that at Schofields, our holiday property insurance provides cover for pet damage (domestic animals) to contents when the accidental damage extention is included. This may typically include circumstances of chewing furniture or even ‘accidents’ on the setee/bed by pets, though do note you will have to pay an excess in the event of a claim.

Damage caused by unwelcome wild animals, vermin and infestations

As winter arrives, we aren’t the only ones seeking shelter from the cold – vermin will also be looking for refuge. Unfortunately the damage they inflict can be severe, with chewed wiring or pipes posing risks of fire or water damage.

The vast majority of insurance policies exclude loss or damage by vermin, including rats, mice, squirrels, foxes and infestations such as fleas and woodworm.

If, however, there is ‘impact’ with the building by any animal, e.g. a bird flying into a window or a cow damaging a boundary wall – this is usually covered.

Preventing damage

Damage to holiday homes by pets, wild animals, vermin and infestations is somewhat rare. However, there are some steps to prevent animals causing damage – especially when your holiday home is used infrequently over winter.

Take preventative measures such as:

• seal any holes in floorboards and replace damaged skirting boards;
• ensure there isn’t access to roof space via missing tiles, fascias or soffits;
• do not leaving uncovered food around nor opened packets of foods like cereals and pasta – animals have a strong sense of smell;
• keep all work surfaces, and insides of cupboards and floors, free of food crumbs;
• do not leave leftover food rubbish in bags in your back garden. Always put them in a bin (wild animals are opportunists and leaving out food bags will only encourage them into your garden);
• use indoor devices such as ultrasonic repellers. These use electromagnetic interference or ultrasound to drive rodents away. They emit a sound that is unpleasant to a rat or mouse but inaudible to the human.

If it is too late and you have some unwelcome wild animals using your holiday home, then there are a number of options. For example, if you have mice or rats living in your second home, using live traps baited with something tasty – and checking the trap twice daily – can help.

Once you’ve caught the squatter, do not simply let him go in the back garden – he will just come back. Take him a bit further away from your property (go for a drive for a few miles) – or he’ll be back at your house before you are!

If you are considering using poison baiting, then do bear in mind that they can be very dangerous as they could be ingested by other animals (such as pets) and even children. Engage a professional pest controller to do it for you.

To summarise
If you allow pets at your holiday property check the terms of your insurance policy to see if damage by pets is excluded. Consider taking a damage deposit from guests with pets and also clarify the implications of pets causing damage in your rental contract.

Look out for signs of vermin taking refuge at your property – smells, droppings, scratching sounds, and appoint a professional pest controller to eliminate the problem.

Related posts:

1. Damage By Pets
2. Flood & storm insurance for property abroad
3. Is your overseas property insured when empty?

A team of HM Revenue and Customs inspectors is targeting overseas holiday home owners to see if they are correctly declaring rental income or gains from holiday homes abroad. Using sophisticated ‘data mining’ technology, a new 200-strong unit has been set up to identify those in the 50% tax bracket who earn more than £150,000 a year – and own property overseas.

The team will be scrutinising third-party information (advertisements placed on holiday letting websites?) and comparing this against what has been declared on the owner’s tax returns. Any discrepancies in declared income and where on paper owners appear to have insufficient means to have purchased the property, will be investigated.

Should overseas property owners be worried?

It seems that this new unit will focus on the highest earners (paying the top 50% tax rate) but could be rolled out to target all holiday homes abroad.

Letting a holiday home is high maintenance and many owners struggle to make a profit, many make a loss, so what’s left to tax? Those who let their foreign property and declare income received have nothing to fear, but be prepared to provide evidence if you have received no income from the property. Check your tax affairs are in order.

Second home council tax discounts to be scrapped?

Second home owners are under attack, as proposals are also being drawn up by the Government that would mean the scrapping of council tax breaks for owners of second homes in England. At present, council tax discounts on second homes range from 10% to 50% and can be worth hundreds of pounds a year.

Why the cuts?

To lower overall council tax bills? To increase the local council’s income? To deter someone thinking of buying a second home? To encourage second-home owners to sell their properties?

There are diverse opinions surrounding second homes. Some say owners push up property prices, make it harder for local people to get on the property ladder and absent owners suck the life out of local communities. In reality some do, but most don’t.

Those who will be hardest hit are those owners who have saved to buy a second home (as a pension alternative) and those who struggle to make a decent income out of holiday letting. Many owners boost local economies by supporting local businesses and bring in year round tourists – they should be encourages with tax incentives, not cuts?

Related posts:

1. Flood advice for holiday home owners
2. How to sue deceptive holiday rental owners
3. Recap of holiday home news: 2 February 2010