Cottage owners have the option of taking out insurance to cover buildings or buildings and contents. There are various optional conditions such as accidental damage and amount of excess all of which contribute to the overall cost. Insurance companies will generally provide a selection of quotes. A basic insurance policy covers fire and theft.

There are various insurance companies that sell holiday cottage insurance. Some deal with holiday homes in the UK only, others also cover popular countries for holiday homes abroad.

• Do view a shortlist of insurance companies to begin your research

One thing to bear in mind when insuring an overseas property is that some countries do not have the equivalent of the FSA to complain to if an insurance company does not pay out. It has been known for insurance companies in Spain to refuse payment. The other disadvantage of obraining insurance in a company abroad is that invariably the policy involves a lengthy booklet of detailed terms and conditions which is bad enough to read  in English but how many people would go to the trouble of reading it in a foreign language, even if you can?

For that reason we would advise holiday home owners to insure their foriegn holiday homes with a UK company even if the cost is slightly higher.