Contents Insurance Coverage For Longer Holidays

You may be spending time away at a second home abroad, visiting the kids on their gap year in Australia or just taking a deserved extended holiday, but one thing you should take care of before you leave, is a review of your home contents insurance policy.

Don't assume that your policy will cover you while your property is unoccupied. Due to the natural increased risk of theft, fire, water or accidental damage, insurance companies will usually include exclusion clauses in your policy which will apply to your policy while you are away. Here’s what you should think about before you go:

How long can I leave my home unoccupied without notifying my insurer?

This will vary by insurer. Typically, you will find exclusion clauses starting to apply if your property has been left unoccupied for more than 30 or 60 consecutive days.

What should I do first?

Firstly dig out your contract and read the Terms & Conditions relating to inoccupation of the property. The definitions of an “unoccupied” property will usually be found in the Definitions at the start of the contract and the exclusion clauses will be situated throughout the document. Look out for the conditions that your insurer will want you to adhere to while you are away.

How much do I need to tell my insurer?

Contact your insurer and tell them about the period of time that you will be away, your departure and return dates, and the reason for your absence. You should do this in writing.

Which conditions am I likely to have to meet if I am away?

The most commonly used conditions in contents insurance policies relating to holidays are:

• Turning off the gas and electricity supply, with the exception of electricity that is required to heat the property and keep your burglar and fire alarms working.
• Turning off of the main water supply.
• Having someone check the property at least once every seven days, to remove post and junk mail and keeping the garden tidy should you have one.

What if my holiday is for longer than 30 or 60 days?

Insurance companies will take different approaches. They may reiterate that you stick to the conditions of your existing contract, while some may agree to extend your cover for a period up to three months. Other insurance companies will reduce the amount of cover during the extended period of time, while some may decide that they cannot cover you during this period. In any case, you will be able to purchase alternative insurance policies, such as an unoccupied property insurance policy.

What if my absence is not caused by being away on "Holiday"?

There are many reasons why your home may be unoccupied. You may be having renovation work and have had to move out; you may have moved out after selling your home and while you wait for a buyer; you may be living elsewhere because your house is being renovated; or a property may be unoccupied due to the death of the occupant or a family member moving into long-term care. You will need to discuss these reasons with your insurer closely, because some situations may require the purchase of an additional specialist insurance policy.

Which basic precautions should I take anyway while I am away?

Irrespective of the conditions that your home contents insurance policy complies you to meet, there are obvious things you can do to prevent unwanted incidents happening in the first place:

• Give a key to a neighbour, friend or relative and have them visit regularly.
• Don't publicise your absence to people you don't know.
• Have a neighbour come in once a day to clear post, turn on or off lights or just change up the way your property looks from day to day.
• Remove your valuables from your home and put them in a bank's safe deposit box.
• Ask a neighbour to park their car in your driveway occasionally.
• If your garden needs regular maintenance, do pay someone to come in and look after it while you are away.
• Divert your post to another address, or have the Post Office hold it for you until your return.
• Cancel the milk, newspapers and all other regular deliveries.
• Give permission to someone you trust to deal with your insurance company – if required - while you are away: it is difficult to manage a problem if you are far away from home in a different time zone.
• Consider having someone stay in your property while you are away.