One in three holiday home owners wrongly insured

One third of holiday home owners have bought the wrong insurance for properties, resulting in “substantial risk” to both the owners and their guests, according to an insurer.

Research by holiday-home insurance provider Schofields suggests property owners buy the wrong policy because they seek the cheapest deal.

Schofields surveyed 1,633 UK-based holiday-home owners with at least one property abroad or in the UK.

One in three (33%) said events had made them realise they had the wrong type of insurance cover on their property.

When asked how they realised this, 81% said when trying to make a claim.

Among those with the wrong insurance, 34% said they did not understand the policy they bought or what was needed, 15% felt they had insufficient advice and 18% said details of the holiday home were wrong.

Just over half (53%) had policies with overseas insurers.

A spokesman for Schofields Holiday Home Insurance said: “A huge mistake many home owners make is looking for a cheap deal. Our advice is to look for a good value deal instead.”

Building societies are charging borrowers for going elsewhere for insurance

Building societies are forcing home buyers to take out their often high-priced in-house insurance policies – or face a penalty of as much as £45 if they shop around.

A survey by comparison site named Ipswich building society as the worst offender in a list of 18 lenders which charge home buyers if they choose to buy their buildings insurance at an alternative provider. The society charges £45, although in a statement it said that it plans to drop the charge later this year. Among other lenders, the biggest still continuing the practice is Skipton, which charges £25.