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Holiday home insurance Cyprus in 2023. What is holiday home insurance?

Holiday home insurance

Owning a holiday home can generate extra income, but unlike your main residence, your temporary residence may require extra insurance.

Holiday homes are prone to theft, weather, and water damage, especially if left unoccupied for long periods. Moreover, holiday homes frequently let out to guests are at a higher risk of damage.

To fully protect your property against these risks, having the right type of holiday home insurance is important.

Find out what you need to protect your holiday home.

Table of contents

  • What is holiday home insurance?
  • Do I need holiday home insurance?
  • Can I buy standard house insurance instead?
  • What does holiday home insurance cover?
  • What does holiday home insurance exclude?
  • How can I save money on holiday home insurance?
  • Who pays for damage to my holiday home?
  • Holiday home insurance comparison
  • Best holiday home insurance Cyprus
  • How much is holiday home insurance?

What is holiday home insurance?

Holiday home insurance is tailor-made specifically for people who own an additional property and sometimes let it out.

Additional and second homes include different property types, such as houses, apartments, maisonettes, villas, and cottages.

Holiday home insurance includes buildings and contents insurance, much like standard home insurance.

Like most home insurance, you can buy holiday home coverage individually or combine them in one policy.

Holiday home insurance provides:

  • Building insurance
  • Contents insurance
  • Liability insurance
  • Loss of rent or income cover
  • Employer's liability insurance

Buildings insurance covers the property’s structure, including the roof, doors, windows, floors, and walls. It also includes permanent fixtures and fittings, such as drywalls and decorations.

Contents insurance covers your belongings inside the property, including furnishings, kitchen equipment, household appliances, and electrical devices.

We will cover these insurances in more depth below.

Note: Even if you infrequently let out your property to friends, these coverage options are important.

Do I need holiday home insurance?

No - you are not legally required to buy holiday home insurance. However, if you have a mortgage, your lender will probably insist you have building insurance.

Through their affiliate insurance companies, banking institutions in Cyprus provide property insurance policies. Nevertheless, these policies are about 5% - 15% more expensive than the average insurance policy.

In addition, you will be obliged to acquire insurance from an affiliate insurance company of the property developer (i.e., the construction company) if your holiday home is located in a multistory building or a complex.

By default, these contracts are more expensive than standard policies.

Banks and construction companies create the impression that acquiring an insurance policy from them is obligatory, but this is not the case. You have the right to choose your own provider.

Can I buy standard house insurance instead?

Standard house insurance won’t provide adequate cover for your second home. They generally don’t cover homes that are left empty for longer than 30 consecutive days. In contrast, holiday home insurance can cover you for an unlimited time.

Most standard house policies are unsuitable as they don’t cover letting out your property to guests.

Holiday homes are more vulnerable to damage as they are rented and unoccupied for long periods. Insurance for holiday homes covers the associated risks with those events, whereas standard home insurance doesn’t.

In Cyprus, holiday home insurance policies are 10% - 15% cheaper than standard house insurance due to the fact that they are not used on a daily basis.

What does holiday home insurance cover?

Your holiday home cover will depend on your needs and insurance provider. In general, you will usually be covered for the following:

Buildings insurance

Much like standard home insurance, buildings cover for your second property insures the structure of the building against damage from events like earthquakes, vandalism, fire, storms, and flooding.

Holiday home building insurance also covers permanent fixtures like swimming pools, fitted bathrooms, and kitchens.

Contents insurance

Your holiday home contents insurance will cover your soft furnishings, furniture, electrical gadgets, home appliances, and any possessions you keep in your holiday home.

Public liability insurance

You might need holiday home public liability insurance for certain unfortunate events. Suppose guests take legal action after getting hurt or injured on your property. Your liability cover will protect you from personal liability.

Loss of income or rent

If you cannot let out the property due to damage from a fire, flood, or storm, loss of income or rent will cover your losses. Some policies only cover income from pre-existing bookings, so it’s important to know what your policy covers and ask about loss of income or rent: holiday let home insurance.

Employers liability insurance

Suppose you employ any number of staff (such as cleaners or gardeners) who are registered with the social security authorities of Cyprus under your employer number. In that case, holiday home employer's liability insurance is a legal requirement. This cover will pay for legal fees and medical bills if they are injured while working for you in your holiday home.

Depending on your policy and insurer, your insurance may also provide you with the following:

Alternative accommodation

This cover can pay for alternative accommodation for your guests if your property is damaged and inhabitable.

Accidental and unexpected damage

This cover protects you if you or a guest accidentally damages the home, such as spilling a drink on the carpet or breaking a window.

Emergency travel expenses

If you have to travel to your holiday home for an emergency to resolve issues, emergency travel may cover you.

Legal fees and disputes

If you are in dispute with tenants about a claim, you may have cover for legal costs.

Note: Some holiday home insurance provides the above as standard, whereas others will require you to buy additional cover.

What does holiday home insurance exclude?

There are certain eventualities that some holiday home insurance won’t cover.

Like any type of insurance policy, there are exclusions to be mindful of. These limits will vary depending on your provider and your chosen policy.

Some of the common exclusions include:

Bedroom limits

Some policies won’t cover properties with many bedrooms. There is usually a limit to how many bedrooms can be insured.

Extended lets

If guests extend their stay longer than your policy allows, you may need landlord insurance. If you want to know more about landlord insurance, you can see our article here

Pet damage

Not all holiday home insurance will pay out for damage caused by pets. If you run a pet-friendly letting, you should check for this exclusion.

Stag and hen parties

Standard holiday home insurance excludes wedding parties. Furthermore, your policy may be invalidated if your guests invite others into the property.

Construction materials

Some exclusions apply to non-standard building materials. For example, if your holiday home is made of timber or wood, you might need specialized home insurance.

Burglaries and theft

Some policies won’t cover theft claims unless there is sufficient proof of forced entry to the property or you have security equipment in place.

How can I save money on holiday home insurance?

Several methods can help you reduce the cost of your insurance.

For affordable holiday home insurance, consider making the following changes.

Improve security

Extra security measures such as installing smoke detectors and burglar alarms in your holiday home will help reduce your premiums.

In addition, providing guests with instructions about setting alarms or using the high-quality locks you have installed will be helpful in saving money.

Home maintenance

Keeping your holiday home in good repair will reduce the risk of claims and can lower your insurance costs.

Deductibles and excess

Also known as a deductible, your excess is the amount you will pay for any insurance claim. By raising the excess of your policy, you will lower your premiums. But make sure this is still affordable for you.

Pay annually

You can usually reduce the cost of your insurance by paying upfront and annually rather than in installments. You typically pay interest when paying monthly.

Combining policies

If cheap insurance is your main objective, buying buildings and contents insurance together under the same policy is usually cheaper. You can get deals with combined policies with the same insurer.

No-claims discount

Generally, the longer you go without making a claim, the more you save.

Who pays for damage to my holiday home?

Your holiday home will inevitably incur damage if you rent it to guests, and it is unlikely that they will have insurance. As the owner, it’s your responsibility to insure your property fully.

If your holiday home insurance covers accidental damage and one of your possessions is accidentally broken, you could make a claim. However, you must pay the excess, and your insurance premiums might increase when you renew your policy.

In that case, you should calculate whether the cost of claiming is worth the cost of the damage. If the claim is below your excess amount, it might not be.

An alternate option would be to ask for a deposit from your guests for potential damage. You can assess the property for damage at the end of their stay and fully refund them if appropriate. In the event that something gets broken, you can deduct a certain amount.

You could use the deposit in the event of significant damage to make a claim on your insurance and pay for your excess. This amount will help you decide what deposit to set.

Asking for a deposit can encourage your guests to care for the property while staying there, but it can put off some potential guests.

The other option is to pay for any damage yourself, but this could become unaffordable.

Carrying the right holiday home insurance is wise as you are liable for the damages sustained to your property.

Holiday home insurance comparison

When comparing holiday home insurance, you can consider buying all-risk or named perils contracts. It’s important to know what their differences are.

All-risk contracts cover all risks and perils (that the policy doesn’t specifically exclude) with few limitations. These contracts are also known as open perils policies.

In contrast, named perils contracts explicitly name the risks and perils they cover. These policies only cover the events listed in the contract. Therefore, many perils may not be covered.

For example, a named perils policy that covers damages from unexpected fires won’t pay for an unprecedented flood. In contrast, an all-risk contract may include both risks in one policy.

When you receive holiday home insurance quotes, your needs will be assessed by underwriters who will determine the risks of insuring your holiday home.

Only international underwriters provide all-risk contracts. Cyprus cooperates with local and international underwriters.

At Pitsas Insurances, we work with both local and international underwriters to provide our clients with the best holiday home insurance.

Best holiday home insurance Cyprus

Pitsas Insurances will help you find the best holiday home insurance in Cyprus.

If you are on a tight budget, we will help you find the cheapest holiday home insurance.

Some of the advantages of our policies are:

  • The lowest number of exclusions. For example, landslide damage is excluded by 95% of holiday home insurance contracts in Cyprus. Nevertheless, many areas (namely Pissouri and Armou) have suffered serious landslides. Pitsas Insurances is one of the few insurance companies that has been compensating its clients for landslides.
  • Low excess rate on earthquakes. Earthquakes are the most common natural disaster in Cyprus. Most insurance contracts raise the excesses exclusively for earthquakes leading to redundant expenses.
  • Protected areas. We cover theft even from negligence cases (i.e., you forgot to close the windows or even the door of your home).
  • We have the highest claim handling satisfaction ratio. Our proposal forms are designed fairly to avoid trapping customers. We do not require clients to declare everything in the highest detail on the application form. Some insurance companies will not compensate you for damage to photovoltaic panels, antennas, or garden furniture if you don’t explicitly state their value on the application form.
  • We cover more than damage costs. If your pipes break, we cover the damage costs and any associated expenses related to detect this damage.
  • We use independent valuators to assess the risk on properties. Their opinion is more objective and often favors the client more than most insurance companies' affiliated valuators.

Key takeaways

Holiday home insurance is specifically designed for people who own a second property and sometimes let it out.

Like most home policies, holiday home insurance includes buildings and contents insurance.

You are not required to have holiday home insurance by law. However, a property developer might insist you acquire buildings insurance if your holiday home is in a multistory building or complex. You can choose a provider other than the developer.

Most holiday home insurance won’t cover all eventualities, so you should check your policy.

Carrying the right holiday home insurance is important as you are liable for the damages your property sustains.

Pitsas Insurances can help you find the best Cyprus holiday home insurance.

How much is holiday home insurance?

The cost to acquire homeowners insurance depends on the coverage you need.

In summary, the following factors affect the cost of insurance for homeowners.

  • Total rebuild cost
  • Total value of insured contents
  • Monthly rental income cost
  • Built-up area and any renovation expenses.
  • Property construction materials (e.g., stone)
  • Year of construction (or the age of the building)
  • If the property is left unoccupied and for how long
  • Type of property (e.g., semi-detached or maisonette)
  • Number of levels and types of rooms (e.g., basement)
  • Previous and current claims history

Holiday home insurance Cyprus quote

Without adequate holiday home insurance, you could face unnecessary financial problems in the event of theft or damage.

Pitsas Insurances offers tailor-made holiday home insurance policies to protect your second home and belongings.

For more information about home insurance, please visit our website

To get a personalized quote for holiday home insurance in Cyprus, you can complete our questionnaire.

Pitsas Insurances is part of a renowned group of companies, Amazon Group Services. We work with many civil engineers who can help you accurately calculate the rebuild value of your property.

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Contact [email protected] or
call us on 700 70 500