If you own a second home abroad, letting it out when you?re not using it can be a convenient source of easy income, not to mention the reassurance that your property is in use and being looked after rather than sitting empty. Unfortunately in reality it’s not that simple and there are risks involved in allowing strangers to stay in your holiday home. After all, you have a lot of money invested in your place in the sun, and letting, although the benefits are clear, increases the risk to your property and possessions. But it is a problem easily solved, all you need to do is make sure that your insurance for second homes policy covers you for the type of problems that could arise from letting your holiday home.

A lot of insurance policies for holiday homes do not include cover people other than family and friends, so make sure you get a specialist holiday home insurance policy, which will allow you to rent the property to other tenants. Of course the risks of allowing strangers into your holiday home are obvious, so choosing a policy that includes accidental damage on the part of those strangers will help reassure you that you are protected for any eventuality. Another thing to consider is what you would do if something did happen to the property and the potential loss of rental income ? some policies will not only cover this cost but also provide alternative accommodation for you and your tenants in the event that the property is uninhabitable.

The main thing to remember when choosing an insurance policy is to always read the small print. You might find that house insurance in Spain, Italy and other popular holiday destinations is cheaper to buy from the country in question, but these European policies for holiday homes are often a lot more limited than UK policies in the cover they offer. For instance insurance policies in many European countries do not cover property against damage caused by a guest or tenant as standard, because in these countries it is assumed that visitors will be aware they should have their own ‘liability insurance’ policy. This type of insurance could put off potential visitors from the UK as they would have to pay more for their travel insurance, not to mention the fact that if anything did happen and the tenants were uninsured, you wouldn?t be covered. The easiest solution is to take out a second home policy based in the UK, where public liability insurance is included in the premium as standard.

Another common mistake that holiday home owners make is accidentally signing a policy that requires them to visit the property once a week to perform regular checks. Failure to do this would mean the policy was invalid but obviously when your second home is hundreds of miles away this is just not possible. Fortunately not all insurance policies have requirements like this, so shop around for the best deal but remember that it is still advisable to have the property checked regularly (by an agent or reliable trustworthy neighbour) for your peace of mind and in case anything does go wrong while you are away.

It can be difficult to find which is the best insurance policy for a second home abroad. Many people will choose to stay with the first deal that comes their way as it causes them the smallest amount of effort at the time. This is definitely not the right way to do things, failure to consider all your options could lead to a lot of stress and expense later. It?s important to make sure that your second home insurance covers you for all eventualities and that your policy does not contain a catch or loophole that will render it useless just when you need it. Here are a few tips of what to look out for:

Security ? Holiday homes have a much higher risk of burglary as they can be left unattended for long periods of time. It?s important to know the conditions of your overseas property insurance policy regarding security ? many second home policies will only pay out if the house was fully secured and locked down when the burglary occurred. If this is the case ensure that any friends or tenants who will be staying at the property are aware of this, as they could leave the window open and nip to the shops, and you still wouldn’t be covered! Check whether your policy will only pay out if there is proof of forced entry, if this is the case it might be worth changing it especially if you rent your property as all previous tenants would have had access to your keys. If you can’t be there to hand keys over to tenants don’t leave them under the doormat, use a keysafe and have a local person that you trust manage it for you and change the combination between guests.

Personal property ? insurance for holiday homes does not often include personal items or valuables beyond basic household items. You probably won’t be covered for any extra belongings that you or your guests bring with you so it?s important to make sure you also have a good travel insurance policy, and don?t leave valuables on the property when you?re away. It?s also worth checking whether outdoor property such as bicycles, garden furniture, lawnmowers, barbecues etc would be covered if you were away if left outdoors or in a shed. Some policies only cover contents inside in the property itself.

Liability insurance ? If your second home insurance is with a company based abroad, be sure that you fully understand your policy as the rules can be very different to the UK. In some European countries a standard insurance policy for a holiday home won’t cover you if any damage is inflicted by guests to the property, they are expected to have their own ?liability insurance? to cover any such events. The problem is if your guests are themselves from the UK, they may not know this. You could inform every guest of the need to do this, but it might put them off and an alternative solution that’s probably easier would be to insure your property through a UK based company which will cover you completely.

Natural Disasters ? If your holiday home is in a country with even the slightest risk of earthquakes, storms or other such weather, don?t underestimate the implications this could have to your property. You may only visit the property in the sunny summer months but it is still there the rest of the year. Some insurance policies require a large premium from you in the case of structural damage by natural causes, so you should shop around for the best deal as there are many which don’t.

So at long last you have managed to find your perfect place in the sun, the holiday home you have always wanted and it gives you the chance to escape for a few glorious sunny weeks of each year. It’s an attractive idea, and the perfect way to pass the summer months, enjoying the sunshine and making the most of staying at your second home on your own terms without having to worry about bills, other guests and the other stresses of staying at a hotel.

But problems can arise when you view your home purely as a holiday retreat, and not pay too much mind to how it will fare through the winter months when you?re not around to take care of it. A lot of second home owners fall into the trap of believing that their overseas holiday home insurance will cover them for any problems that may arise throughout the whole year, but in fact many policies contain conditions that can leave the claim invalid if the property is damaged whilst unoccupied.

The most common trap that people fall into with insurance for second homes is not realising that their policy requires them to fulfil certain obligations for the claim to be valid. Often hidden away in the small print, you could be required to switch off and drain the whole water system when leaving the house unattended, not leaving the property unattended for over 30 days or even performing weekly checks.

Your second home could be left without cover if something happened and these conditions are not met, so the most important thing is to check your insurance policy to make sure there are no hidden catches in the small print. If you need to, upgrade your policy ? some second home insurance companies like Schofields offer insurance for holiday homes that remains valid throughout the year without these requirements.

Of course, you should do everything in your power to protect your second home against the dangers it could face over the winter. Security is obviously very important, and you should make sure that no valuables are left in sight and that you always leave the house completely secured. If possible it’s advisable to have someone you trust locally check on your holiday home regularly just to be sure nothing has gone wrong, and to catch it early if it has.

Another common problem that often occurs when holiday homes are empty over the winter is frozen or burst pipes. Last year hundreds of holiday owners were caught out by the unexpected cold weather, finding their second homes damaged by water as a result of being unprepared. Many of these unfortunate homeowners also found that they weren?t covered on their insurance. There is no way to guarantee your holiday home will be safe from disasters like these but there are a few simple steps you can take that could make all the difference.

Firstly, don?t turn the heating off over the winter ? it may save on heating bills, but in temperatures below freezing the pipes could suffer serious damage, which would cost a lot more. All pipes in the house should be thoroughly insulated ? including any in the loft space above the roof insulation where heat from the house cannot rise to. Leave the water mains switched off to limit the amount of water that could leak out if a pipe did burst, and most importantly if you do discover a frozen or burst pipe, call an emergency plumber immediately!