In order to discuss static home insurance, it is necessary to start by confirming just what a static home is and how it differs from other situations that might appear to be similar.
Static homes and related structures
It’s important to understand that there are typically three distinct recreational accommodation situations that are occasionally confused:
Static homes are normally defined as recreational accommodation typically located (on a semi-permanent basis) on a pitch within an authorized and approved site. Although they are mobile in the sense they are transportable, they are typically not structures that can be towed.
Park homes are typically more substantial and largely permanent structures located on specially licensed park home sites. They normally constitute the permanent residence of the owners concerned.
Holiday homes may be a house or a flat (a permanent property) that you own and use for holiday purposes. In some cases, you may also let them out for the purposes of generating rental income.
Park homes and holiday homes won’t be discussed further here.
Static homes and insurance
Just as is the case with a conventional property, it’s typically important that you protect both the structure of your static home and its contents.
It’s also advisable to have third party liability insurance. This is a form of cover that means you will have a degree of financial protection should someone successfully sue you for injuries they have sustained to their person or damage to their property arising as a result of your property.
Even if you decide that you would prefer not to have third party liability cover, you may find that the site owner has a legal right to insist upon it. That is covered under the auspices of them being obliged to provide a safe and secure environment.
Site owners and static home insurance
Although the site’s owners may have a legal right to require you to have third party liability cover, in most cases they do not have the right to require you to purchase static home insurance from themselves as a provider. That means that typically you are free to choose a static caravan insurance policy and type of cover that meets your requirements and budget.
The site owner may ask for proof of insurance and charge a small fee to see your policy schedule, but, overall, even with this cost included, you may be able to save money on the cost of your cover.
There may occasionally be odd exceptions where you are obliged to take the site owner’s insurance. These might apply in complicated cases where the deeds for the site or an individual pitch give a landowner certain rights in terms of sourcing insurance cover.
Such situations are comparatively rare and if you are being pressured to take such cover from the site owners, it might be sensible to seek qualified advice.
All insurance policies bring with them terms and conditions. That applies to static home insurance as much as to any other form of cover.
These should be carefully read and studied in order to be sure that you understand them.
One principle that is worth picking up as part of this discussion relates to the use of your static home for the purposes of income generation. Typically a combination of your insurance policy and very possibly the site owner’s contractual conditions may explicitly prohibit you from:
- using your static home for any form of business or commercial activity;
- specifically, as part of that, letting it out or others for the purposes of generating rental income.
If you do have plans to let your static home to fee-paying guests, it is imperative to discuss the matter in some detail with the site owners and your insurance provider well in advance of taking the idea any further.