As summer finally arrives and people head to the coast, Karen Stacey, Managing Director of Compass Insurance looks at the essential elements that should be included in beach hut insurance policies.
Beach huts are now almost as popular as other great seaside traditions, such as fish and chips, arcades, helter skelters and bingo. However, from an insurance perspective, this is a niche market, with beach huts having a set of unique needs. Indeed, with these properties at risk from threats such as inclement weather and vandalism, it makes sense for beach hut owners to have a sound policy in place.
Furthermore, beach huts require quite a significant financial investment from the outset. While it is possible to find one for under £10,000, this is a rarity, with the average price hovering around £40,000 at the time of writing. A typical beach hut in the UK is currently worth £42,999, according to Rightmove, with prices being higher for properties nearer the beachfront and/or local amenities.
We know from our own research that 22% of people are put off owning a beach hut due to concerns over theft or damage from fire, vandalism, storms or floods when the beach hut is unoccupied. This is particularly a concern to older generations (ages 55+), so having an insurance policy that protects against these factors provides beach hut owners – or prospective owners – with reassuring peace of mind.
What does beach hut insurance cover?
Beach hut insurance policies should offer comprehensive cover for a range of potential issues. These usually include protection against structural damage from storms or flooding, safeguarding in the event of theft or vandalism, and public liability insurance, which is particularly important if somebody rents out their hut or has frequent visitors.
Why do these policies cover such factors? Well, beach huts are often exposed to harsh weather conditions – it isn’t sunny in the UK all year round – and increases in stormy weather can cause significant damage to roofs, walls and windows. On the same note, given their coastal locations, beach huts are also prone to flooding from high tides, storm surges and heavy rainfall, which usually results in water damage.
Unfortunately, vandalism is another issue, with graffiti, broken windows and other intentional malicious damage common claims for beach hut owners. In some extreme cases, arson is another risk, resulting in claims for smoke and fire damage. Huts are also prime targets for theft, especially if there are valuable items inside. This has led to claims for stolen contents, including furniture, equipment or personal belongings becoming quite frequent. Plus, locks need to be repaired or replaced accordingly.
In addition, there are other factors such as accidental damage, either caused by occupants or as a result of nearby activities, as well as less common issues like subsidence or ground movement. The latter may affect beach huts located on unstable or shifting sands. Falling trees or branches can also present a threat, not to mention any sudden updates or changes in requirements from the local authority upon whose land the beach hut is constructed.
It’s important to note that a beach hut insurance policy covers the rebuild cost only. Just because a property was bought for £45,000 doesn’t mean that’s what the owner will get back. The average rebuild cost for a beach hut is actually around £3,500. Plus, most policies don’t extend to salt spray damage (or corrosion) to paintwork or sun bleaching.
What can be done to reduce claims and premiums?
Proactive measures can be taken to minimise risks, thereby demonstrating to insurers that a beach hut is well-maintained and secure, with the overall effect of reducing insurance premiums.
One of the most effective actions is to improve beach hut security. This can include installing high-quality, robust (and salt-water resistant) locks on doors and windows to deter theft and vandalism. In addition, motion-sensor security lighting can help deter intruders, while fitting a security alarm can offer an additional layer of protection.
Similarly, regular maintenance can contribute to reducing risks. For instance, if a beach hut is kept in a good state of repair, with regular checks on its roof, walls and foundations, it can be deemed to have good structural integrity, making it less likely to succumb to the elements. Other preventive measures, such as wood that is treated to protect against rot, can also help.
Other measures that can help include flood prevention tactics such as ensuring there is proper drainage around a beach hut, as well as the use of a flood barrier or sandbags during high tide or storm warnings. Weatherproofing windows with storm shutters to protect against high winds and flying debris, as well as securing the roof to withstand strong winds is another means of risk reduction.
Finally, insurance premiums can also be reduced by joining a beach hut association, as they arrange regular local patrols as a precautionary security measure. Some associations may have partnerships in place with insurers, enabling their members to access discounted rates. However, huts that are precariously positioned (such as near erosion or in an area prone to subsidence) are still likely to incur a higher premium.
Compass now offers beach hut insurance
As a leisure insurer, Compass is well aware of the increased demand for beach huts throughout the UK, especially in prime seaside locations such as East Sussex, Dorset and Cornwall. Given that purchasing such a property is a considerable investment, we have recently introduced a new beach hut and beach chalet insurance policy. So, should anyone experience damage to their beach hut, help is at hand to get it repaired and restored as soon as possible.
By taking out suitable insurance, beach hut owners will be covered in the unfortunate event of flood, storm or sea damage, as well as theft or vandalism. So, whether they are using the beach hut in person or renting it out to others, they can enjoy the sun, sea and sand, safe in the knowledge that their property is protected from the most common risks.
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