Holiday Park & Caravan Park Insurance
A holiday park is part landlord, part hospitality business and part landowner. The operator may own a hire fleet of static caravans and lodges, sell or site holiday homes for private owners who pay a pitch fee, and run a clubhouse, shop, pool and play area on the same ground. Each of those is insured differently, and the boundary between them is where claims are argued.
Location drives much of the property risk. Many parks sit on the coast, beside rivers or on low lying ground because that is where people want to holiday, and that brings flood, tidal surge and wind exposure that an inland commercial site would not carry. Insurers will look at the flood history of the site and the position of individual units within it, not just the postcode.
The site licence issued by the local authority under the Caravan Sites and Control of Development Act 1960 sets conditions on spacing, fire points, roads and facilities, and planning permission commonly restricts the months the park can be occupied. Both shape the risk. Spacing between units affects how far a fire travels, and the closed season leaves hundreds of units unattended over winter.
We can advise park owners and operators on insuring the hire fleet, the park's own buildings and infrastructure, the liability that comes with inviting families onto the site, and the pitch fee and letting income the business depends on.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Flood and storm on coastal and riverside sites
Static caravans and lodges sit close to the ground and are lightly built compared with a house. River flooding, tidal surge and high winds can damage dozens of units in one event, and a park with a flood history may find cover for that peril restricted or carrying a substantial excess unless defences and evacuation plans are in place.
Fire spreading between units
Caravans are compact, contain gas bottles and furnishings, and burn quickly. Site licence spacing rules exist to stop a fire in one unit reaching the next, and decking, sheds and extensions added by owners over the years can erode that separation without anyone noticing.
Pools, play areas and lakes
Families with children are the core customer, and the pool, play equipment, fishing lakes and open water carry the serious injury exposure. Lifeguard arrangements, pool supervision, play equipment inspections and signage around water are the first questions on the liability side.
The closed season
Where planning restricts holiday occupation to part of the year, the park stands largely empty for weeks or months. Frost damage to unit plumbing and site water mains, theft from vacant caravans and storm damage discovered late are the typical winter losses.
Privately owned holiday homes on the park
Owners who buy a holiday home on the park insure the unit themselves, but they rely on the operator's roads, utilities and facilities. Damage to a privately owned caravan caused by the park's tree, drainage or electrical supply can become a claim against the operator.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Park buildings and infrastructure
Clubhouses, reception, shops, toilet and shower blocks, laundries and workshops, together with the infrastructure that makes the site function: roads, internal electrical distribution, water and sewerage systems and lighting.
- Clubhouse, reception and amenity blocks
- Underground services and site electrics
- Roads, paths, fencing and lighting
- Professional fees and debris removal
Hire fleet caravans and lodges
The operator's own letting units, insured for their replacement value with contents, decking and connections. The fleet is distinct from privately owned holiday homes, which should be listed separately so there is no confusion about who insures which unit.
- Static caravans and lodges owned by the park
- Furniture, fittings and appliances
- Decking, steps and service connections
- Transit and siting of new units
Public and products liability
Injury to guests, private owners, visitors and the public across the whole site, including pools, play areas, lakes and any entertainment. Products liability is relevant where the park sells food, gas or holiday homes.
- Injury anywhere on the park
- Pools, play areas and open water
- Food, gas and holiday home sales
- Limits often £5m or £10m
Loss of pitch fees and letting income
Pitch fees from private owners, hire fleet bookings and income from bars, shops and entertainment can all stop after a flood or fire. The indemnity period needs to reflect that a park that misses its season may not recover the bookings until the following year.
- Pitch fee income from private owners
- Hire fleet bookings and cancellations
- Bar, shop and entertainment income
- Indemnity periods that span a full season
Employers' liability
Parks employ grounds, maintenance, housekeeping and seasonal staff, many on temporary contracts over the summer. Employers' liability is a legal requirement once you employ people and can be arranged where required, subject to the policy terms.
- Permanent and seasonal staff
- Grounds and maintenance work
- Arranged subject to policy terms
- Certificate displayed or available
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- Number of pitches, split between hire fleet, privately owned holiday homes, touring and tents
- Site location, flood history, distance to the sea or a river and any defences
- Site licence conditions, unit spacing and the position of fire points
- Occupancy season permitted by planning, and arrangements during the closed months
- Facilities: pool, play areas, lakes, clubhouse, bar and entertainment
- Pool supervision, lifeguard qualifications and play equipment inspection records
- Gas and electrical inspection regimes for hire fleet units and site supplies
- Claims history, separating storm and flood losses from liability claims
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
Flood and coastal exposure
A riverside or seafront park with a history of flooding is rated very differently from an inland site on high ground, and the position of individual units within the park can affect the terms.
Mix of fleet and private units
The size and value of the hire fleet sets most of the property premium, while the number of private owners and touring pitches shapes the liability and income sections.
Water and leisure facilities
Pools, lakes and play areas raise the liability rating. Documented supervision, lifeguard qualifications and inspection records are what insurers look for in return.
Closed season management
Drain down procedures, site security over winter and regular inspections of empty units all help, and a park with a record of frost or theft losses will usually see that reflected at renewal.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Privately owned units assumed to be covered
The park's policy covers the operator's own fleet. Holiday homes bought by private owners are their property and their responsibility to insure, and a park that collects contents or buildings insurance on owners' behalf needs to be clear about whether it is arranging cover or simply holding money.
Flood terms on high risk sites
Where a park sits in a known flood area, insurers may exclude flood altogether, apply a high flood excess or limit cover to certain areas of the site. The terms are worth reading before the season starts rather than after the river rises.
Frost damage during the closed season
Many policies expect water systems to be drained down or kept heated when units are empty. Burst pipes in caravans that were not drained may be declined, and the condition usually applies to the hire fleet and the site mains alike.
Undeclared activities
Adding a swimming pool, boating lake, quad bikes, an entertainment licence or a new touring field changes the liability exposure. Activities not declared at inception may not be covered when the first claim arrives.
Common questions
Do we need to insure caravans owned by our holiday home owners?
Generally no. Private owners insure their own units, and many park agreements require them to. Your policy covers the park's own fleet, buildings and infrastructure, and your liability to owners where the park's roads, trees or services cause damage. Keeping a clear schedule of which units belong to whom avoids disputes after a storm.
Our park is on the coast. Can we still get flood cover?
Often yes, but terms depend on the site's flood history, any defences and the position of units. Some insurers will write flood with a higher excess or exclude the most exposed area of the park. A flood plan covering warning, evacuation and moving vehicles helps the conversation.
What happens to cover when the park closes for winter?
Staff may still be on site, but the units themselves stand empty and need attention. Insurers typically expect water to be drained or heating maintained, regular patrols or inspections and security on vacant units. Tell the insurer what the closed season looks like so the terms reflect it.
Is loss of pitch fees covered if a flood stops owners using their holiday homes?
It can be, where the policy includes pitch fee income in the business interruption section and the cause is an insured event. The indemnity period matters: a flood in early spring may affect the whole season, so a short period can leave much of the loss uninsured.
Does the policy cover our pool and play area?
Public liability can extend to them where they are declared. Insurers will want to know about supervision, depth markings, lifeguard qualifications where applicable, and inspection records for play equipment, and the answers affect both the price and any conditions.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.