Holiday Lodge Insurance

If you insure your holiday lodge with Compass on a new for old basis, your holiday lodge will be replaced* with the most recent, brand-new model (or an equivalent) following a total loss.

Similarly, if you were to make a claim for an irreparably broken window, you could expect a brand-new replacement window.

*It is important to note that this is Sums Insured dependent. Click here for more details on how to accurately calculate your Sums Insured.

Your “Sums Insured” is the total amount of money you’re insured for. On a Compass policy:

• Your Structures Sums Insured is the total amount that your holiday lodge (and associated structures, e.g., steps and decking) is covered for.
• Your Contents Sums Insured is the total amount that the contents you keep at your holiday lodge are insured for.

Together these form your Total Sums Insured.

Underinsurance applies if your holiday lodge is inadequately or insufficiently insured. Following some recent market research, it has come to our attention that the cost of purchasing a new holiday lodge has greatly increased over the past few years.

Being underinsured can greatly affect how a claim is dealt with. For example, if a customer insures a holiday lodge for £100,000, but we subsequently discover a brand new equivalent model costs £200,000, they are underinsured by 50%. If a total loss claim occurs, we would only pay 50% of the sums insured, in this case £50,000. This would leave the customer £170,000 short to get a brand-new equivalent holiday lodge. We obviously want to avoid this type of scenario, therefore it is very important that you have the correct amount of cover.

On a New for Old policy, your Total Sums Insured (see previous FAQ) needs to be:

• enough to buy you a brand-new replacement/equivalent for your current holiday caravan/lodge (or an equivalent) on your current pitch on your park.

Click here to find out more about the consequences of underinsurance.

Compass provides policies on a “non-advised” basis, which means we are not allowed to tell you how much your holiday lodge should be insured for.

However, there are lots of ways to work out how much to insure for. For example, you can look at similar units for sale on your park, or just ask your park owner, who should be able to help you come up with an appropriate figure.

Contents can range from televisions to crockery. Please see our handy guide to contents cover here.

Yes. Compass can cover your rented-out unit, as long as you follow all of the rules your park may have in respect of renting. So, in other words, your holiday lodge will not be covered under the Compass policy if you do not comply with your park’s renting rules.

During the periods that your holiday lodge is hired out, some of the covers provided under your Compass policy will be affected. For example, there is a higher excess for malicious acts or vandalism if this is caused by someone hiring the unit from you.

We also provide cover for loss of rent if your structure is uninhabitable as a result of loss or damage covered in the policy, there are some limits and conditions to this cover which are detailed in the policy wording.

If you opt for market value cover for your holiday lodge and subsequently have to make a claim for damage or loss, the “market value” principle will be applied.

For example, following a total loss, you would receive a payment for the market value of your holiday lodge immediately prior to the loss (which may not equate to the Sums Insured amount stated on your policy schedule).

Similarly, if you were to make a claim for an irreparably broken window, you would receive a claims payment for the market value of the window (i.e., the payment would be unlikely to cover the cost of a brand-new equivalent).

As an alternative to market value cover, Compass offers New for Old cover. Please click here for more information.

No. Your contents will not be insured under your Compass policy unless you specifically request cover for them.

A recent analysis (2021) of the market showed that in most cases, it would cost a minimum of £25,000 to replace a damaged holiday lodge with a brand-new equivalent.

This means that if your “Sums Insured” (the amount your holiday lodge is insured for) is less than £25,000, you could be under-insured.

To check, ask your park owner if your Structure Sums Insured amount is enough to buy you a brand-new replacement/equivalent for your current holiday lodge (or an equivalent) on your current pitch on your park.

Yes. Under a Compass policy, these additional structures are included within the definition of ‘Structures’. But don’t forget to add them to your Structures Sums Insured amount, otherwise you could end up being underinsured.

Good question! Depending on what they are and what they’re worth, your valuables aren’t automatically included in your contents cover. Our policy covers valuables up to 25% of your contents sum insured, with a maximum amount of £500 for a single item.

Yes. Under the Compass Holiday Lodge Policy, the Insurer will pay up to £500 for replacement locks and keys. Please see the Policy Wording for more information.