Park closures & open season delays
We’re beginning to get a fair amount of contact regarding what happens if a park owner either closes the park or extends the ‘closed season’.
Firstly, we need to emphasise that we’re dealing with unprecedented events on a worldwide scale. We’re deep into unchartered waters and businesses across the UK are having to make incredibly difficult decisions to help with the prevention of the continued spread of the virus.
If a holiday park operator decides to close the park, we’re sure that it will be for the right reasons: public health and safety, the safety of caravan and lodge owners and the safety and wellbeing of its staff.
With individuals and families having to self-isolate and schools closing, for some businesses it will be impossible to ‘keep the doors open’ and this includes caravan parks.
There is a significant difference here which we accept – you’ve probably paid your pitch fee and now aren’t able to use the facility. We understand the frustration and annoyance, but we don’t have the answer – we’ll have to see how this thing unfolds. As I write this article there appears to be positive signs from China where the draconian measures seem to have quelled the virus.
Under the circumstances, it’s our advice to accept the closure and follow Government guidance in other respects in an effort to contain the virus and stop the spread.
What happens if the park closes but it’s my main residence?
Seek immediate guidance from the following:
Both of the above may be able to offer guidance relating to housing issues. You can also try the local authority. If you’re able to seek assistance from family and friends you may need to consider reaching out to them, or if you’re able to finding some temporary accommodation. This ‘storm’ will pass and we will come out the other side and from a long term perspective you would be better to maintain the terms of your contract (if you have one) and be able to continue to use your caravan or lodge when the virus related restrictions are lifted.
Again, this is a completely unprecedented set of circumstances with no easy answers.
Does our NACO insurance, cover the current situation in terms of missed payments, cancelled lets etc. from the virus?
The short answer is no.
Loss of rent and pitch fees is something that the policy provides cover for, but only when the holiday home is unusable as a result of loss or damage insured elsewhere in the policy. For instance, if you have an escape of water claim that means your caravan or lodge isn’t able to be occupied you can claim for things like loss of pitch fees or rental income. The maximum amount you can claim is 20% of the holiday home sum insured.
As your holiday home has not been damaged and is not uninhabitable as a result of a loss covered by the policy the other cover doesn’t kick in. This also applies when talking about park closures and loss of use. This aspect of cover is commonplace amongst caravan and lodge insurance policies and most business interruption insurance contain similar clauses.
If you would like more information or details please get in touch with us on 01255 820 321, or drop us an email email@example.com
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Published on 19 March 2020 By Dan Ellacott