Holiday home insurance basics
If you’re lucky enough to own a holiday home, you’ll want to make sure you’ve got the best insurance protection, especially considering you’ll not always be there in person to look after it. Whether you keep it for personal use or decide to rent it out to short term guests – we’ve got you covered.
Standard house insurance requires someone to be living at the home for more than 60 consecutive days. If it’s vacant for longer than this, it’s considered a holiday home. Because a holiday home isn’t your primary residence there are more risks involved, for example; the property may be empty for long periods of time, increasing its chances of break-ins.
Key takeaways
- Holiday home insurance is designed for homes that aren’t your primary residence.
- A holiday home can be used by you and your family, and can also be rented to short-term guests if you’ve selected the appropriate cover.
- Because holiday homes are often unoccupied, there are additional responsibilities to help reduce the risk of loss.
- You or a nominated person must inspect the property at least every 60 days and ensure it’s well maintained.
- Your family must stay at the holiday home at least once each year for it to qualify as a holiday home policy.
- If you regularly rent the property to guests, make sure you’ve selected the correct occupancy option when arranging your cover.
- If you’re unsure which type of cover you need, we’re here to help.
What are my obligations?
We expect holiday houses to be empty more often, so our conditions are a little more lenient, but to keep your holiday home cover in place, we do require:
- You or your family stay at the holiday house at least once a year
- The house is inspected (inside and outside) by you or a nominated person at least every 60 days
- The home and its grounds are maintained
- Mail is cleared regularly
- Water supply is turned off
- All doors and windows are secured when the home is vacant.
If you can’t meet these conditions, then a standard $5,000 excess will apply to your policy. Alternatively, if it’s fitted with a professional alarm* this will reduce to $1,000 when you claim for a break-in or burglary.
* Systems which include surveillance cameras only do not meet this criteria – the system needs the ability to provide an external alert (audible or direct to a monitoring company)
How do I get holiday home cover?
It’s as simple as selecting holiday home as the property type when you generate your instant quote. Alternatively, if you are changing your current home into a holiday home, all you need to do is change your cover in the property type drop down menu. The monthly costs will automatically update and will take effect as soon as you confirm the change online.
Holiday home or rental insurance?
The main difference between holiday homes and year round short term rentals is how often they are rented out. We have multiple options available depending on how frequently you rent your house out – just select the right option in the dropdown menu and initio’s clever software will do the rest. If you’re not sure which is the best cover for you, get in touch anytime. We’re here to help.
Is this considered a holiday home?
| Situation | Holiday home policy? |
|---|---|
| You use the property for holidays and family stays | ✓ Yes |
| The property is regularly unoccupied | ✓ Yes |
| You occasionally rent it to short-term guests | ✓ Yes, with the appropriate cover option |
| You only use it as a commercial short-term rental | ✗ No, this policy isn’t suitable |
At initio, we offer comprehensive protection for your bach or holiday home, with flexible cover if you also rent to guests. Learn more: https://initio.co.nz/holiday-home-insurance/
This guide is intended to be a quick reference to vacant houses. We recommend reading the full policy wording for the full details of your holiday home coverage.
Frequently asked questions
Can I leave my holiday home empty for long periods?
Yes. Holiday home insurance is designed for properties that are often unoccupied, provided you continue to meet the policy conditions, such as regular inspections and securing the property when vacant.
What qualifies as a holiday home?
A holiday home is a property that isn’t your primary residence and is typically unoccupied for extended periods. Unlike a standard home, it isn’t expected to be lived in year-round.
Can I rent out my holiday home on Airbnb?
Yes. If you occasionally rent your family holiday home to short-term guests, you can select the appropriate guest cover option when arranging your policy.
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Written by Megan Fisher, Head of Marketing at initio.
Megan has been with initio since 2022 and has over 20 years’ experience in marketing and product strategy. She works closely with initio’s claims and customer experience teams, giving her a first-hand view of how insurance works when customers need it most.