Holiday on the farm - Insurance implications of taking guests
Question: We are thinking of allowing people to holiday on our Farm this year, what do we need to think about in regards to insurance?
Answer: With every local and national tourist board advertising the benefits of a UK holiday this year, many landowners are considering using their field, barn or house as holiday accommodation. This is a competitive market with profits based on keeping your overheads low, but with the public on your property, insurance should be at the top of your budget priorities.
Insuring your liability is your first priority as guests pose a greater likelihood of claiming for any injury or damage to their property whilst staying with you. Liability limits of at least five million pounds should be considered. Your premium will be based on the number and type of services you want to provide. A simple grass tent pitch will often pay less than a caravan pitch with an electricity supply, shower block and toilets. Any paying guests should be declared to your farm insurer and steps to keep guests separate from your farming operations should be thought of.
If you are going as far as providing the accommodation such as ‘glamping tents’, wood huts or self catering units, insurers will want you to take precautions with regards to heating, cooking arrangements and fire fighting. Dialogue with insurers at the planning stage will prevent you buying equipment which could invalidate your insurance.
You may have invested heavily in improvements or additions to your property and these can usually be added to your farm property schedule. Be aware that many insurers will not pay for damage caused by guests so you may have to stand these losses yourself, pursue your guests for the reparations, or pay more for the increase in cover.
For more information or to enquire about a quotation please call Farmers and Mercantile’s Ludlow office on 01584 873 040.