Why Holiday Lets Need Different Cover
Holiday lets operate very differently from traditional buy-to-let properties. Guests come and go frequently, often weekly or even daily. This high turnover creates unique risks that standard landlord insurance doesn't cover.
Key differences include:
- Higher wear and tear: More guests means more use of furniture and facilities
- Accidental damage risk: Unfamiliar guests are more likely to cause damage
- Public liability exposure: More visitors increases injury risk
- Theft risk: Multiple key holders and frequent access
- Unoccupancy periods: Properties may sit empty between bookings
Key Covers to Consider
Buildings Insurance
Protects the structure of your property against fire, flood, storm, and other insured perils. Essential for any property owner.
Contents Insurance
Holiday lets are typically fully furnished to a high standard. Contents cover protects your furniture, appliances, linens, and equipment against damage and theft.
Public Liability
If a guest is injured at your property, you could be held liable. Public liability cover protects you against compensation claims and legal costs. Most policies offer £2-5 million of cover.
Loss of Income
If your property becomes uninhabitable due to an insured event, loss of income cover replaces your lost rental revenue while repairs are carried out.
Accidental Damage
Covers damage caused accidentally by guests—spilled wine on carpets, broken furniture, damaged appliances. This is particularly important for holiday lets.
- Buildings insurance at full rebuild value
- Contents cover for all furnishings and equipment
- Public liability (minimum £2 million recommended)
- Loss of income/rental protection
- Accidental damage by guests
- Theft cover (including by guests)
- Employers' liability if you have staff
Platform Protection Schemes
Platforms like Airbnb offer their own protection schemes, but these shouldn't be relied upon as your only cover.
Airbnb Host Protection Insurance
Airbnb provides up to $1 million in liability coverage and a Host Damage Protection scheme. However, these have significant limitations:
- Only covers bookings made through Airbnb
- Excludes certain types of damage and claims
- Claims process can be lengthy and uncertain
- Doesn't cover your buildings or contents directly
Booking.com Partner Liability Insurance
Booking.com offers liability coverage for hosts, but again, this is supplementary and has exclusions. It doesn't replace the need for proper holiday let insurance.
What to Look For in a Policy
When comparing holiday let insurance policies, check for:
- Cover for short-term letting (not just AST tenancies)
- Acceptance of Airbnb, Booking.com, and direct bookings
- Adequate contents sum insured for your furnishings
- Accidental damage cover included as standard
- Reasonable unoccupancy clause (30+ days)
- No requirement for guest vetting or contracts
- Cover for hot tubs, pools, or other amenities if applicable
Also consider the excess levels. Some policies have high excesses for accidental damage claims, which could make smaller claims unpractical.
Common Exclusions to Watch For
Holiday let policies often exclude:
- Wear and tear: Gradual deterioration isn't covered
- Deliberate damage: Malicious damage by guests may be excluded or limited
- Certain guest types: Some policies exclude party bookings or events
- Unoccupancy: Extended empty periods may void cover
- Business use: If guests use the property for business purposes
- Certain amenities: Hot tubs, pools, and trampolines often need additional cover
Always read the policy wording carefully, or ask your broker to explain any exclusions that might affect your property.
Getting Started
To get a quote for holiday let insurance, you'll typically need:
- Property address and postcode
- Rebuild value of the property
- Total value of contents
- Number of bedrooms and maximum guests
- Expected annual rental income
- Details of any amenities (hot tub, pool, etc.)
- How you market the property (platforms used)
- Claims history
Working with a specialist broker can help you find the right cover. Holiday let insurance is a niche product, and not all insurers offer it. A broker can search the market and find policies that match your specific needs.
Important Disclaimer
This article is for general information only and does not constitute insurance advice. The specific terms, conditions, and exclusions of any policy will vary. Always read your policy documentation carefully and speak to a qualified broker for advice tailored to your circumstances.
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