Over 50s at risk from holiday home underinsurance

One in ten holiday home owners (211,000) have no insurance for their properties abroad, putting them at huge financial risk. The study from Saga Holiday Home Insurance also shows that over 160,000 over 50s who have insured their European properties in pounds Sterling could be caught out due to the weak pound.

The last three years have seen changes to the Euro - a fall of a quarter from a high of 1.51% in January 2007- which in turn affects those with properties in Europe that are insured in Sterling. For example, possessions valued at £10,000 in 2007 would have given policyholders 15,069 euros. In 2010, this would only provide 11,050 euros; combined with the fact that the cost to replace such items is also likely to have increased in the period means that holiday home owners could be left out of pocket.

The study also shows that whilst 71% of over 50s have reviewed their policies in the last year, 19% have not checked for up to three years and one in twenty (6%) have never checked their valuations.

Andrew Goodsell, Executive Chairman, Saga Group Ltd, commented: "Holiday homes are often left vacant for periods of time making them especially vulnerable.  It is therefore important that people regularly check their level of insurance to ensure that they are protected for the full value of their property and possessions."

The average owner only spends one month a year in their properties, meaning for much of the year the properties can lay vacant and vulnerable to burglary and vandalism. Saga's Holiday Home Insurance has no un-occupancy limit, meaning policyholders will be covered if an incident happens whenever the property is vacant. Saga also offers up to £25,000 for protection from loss of rent, a key concern for owners who rent out their properties as a source of income, and up to £2m cover for legal liability as owner of the home.