Caravan and Lodge Insurance: What You Need to Know

Caravan and Lodge Insurance: What You Need to Know


Posted by Sell My Group in Buying a Holiday Home, October 11, 2019

If you’re in the process of setting up a static caravan or lodge, you’re going to need to think about insurance.  Whether you are going use your new property, or if you are going to let it to someone, it’s time to think about protecting against the worst-case scenarios.  Caravan and lodge insurance is a must.

It’s crucial to look at different types of insurance.  For example, basic caravan insurance may not cover you for letting.  You may have to add an additional cover on top for any contents you have in there. What’s more, if you are going to be making money from your property, 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.

Why Get Caravan and Lodge Insurance?

It is a good question to ask, but you must make sure 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, Compare, Compare

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 in details about your caravan or 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 Caravan and 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 contents.  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 which specifically cover holiday homes.  These are worth looking out for, as they will cover properties which 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 in 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

Holiday home policies can often cover contents insurance.  However, in the rare case that they are not, you are certainly going to 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 contents 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 which 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 holiday home policies will cover you on this side of things, it may be worth looking at more specialised business cover just in case.  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 to 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 protect your interests.  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 fairly 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.

Caravan and 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 how much you pay in insurance fees.  For that reason, you can expect to pay more for a property which has been recently built, or for a bigger or more luxurious caravan.  It stands to reason.

Once again, the best thing to do if you are worried about 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, as it is a small cost 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 insurance cover for a caravan or for a lodge, 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.  It is always best to pay a small amount each month to make sure someone has your back in the event of 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 the cover.