Holiday Let Insurance Explained

Holiday let insurance is cover for a property let to paying guests on a short-term basis, such as a cottage, apartment or Airbnb-style let. Neither standard home insurance nor an ordinary buy-to-let landlord policy is designed for it, because short-term guests, higher turnover and paying occupation create a different risk. Holiday let cover typically combines buildings, contents, property owners’ liability and loss of rental income, with features built for short-term letting.

A holiday let sits between a home and a business. It is your property, but you are running a small hospitality operation from it, and the insurance has to reflect both the building and the guests coming and going.

What does holiday let insurance cover?

Most policies combine buildings cover for the structure, contents cover for furnishings you provide, property owners’ liability for injury to guests or the public, and loss of rental income if the property becomes uninhabitable after an insured event. Cover for accidental damage by guests, theft, and periods when the property is empty between bookings is commonly included or added.

Why won’t home or buy-to-let insurance do?

Standard home insurance assumes you live there, and letting to paying guests usually breaches it. An ordinary buy-to-let policy assumes a longer tenancy, not a stream of short-stay guests, and often excludes short-term or holiday letting. Using either for a holiday let risks a declined claim, which is why a dedicated policy exists. Our guide to landlord insurance explains the standard let position.

What extra risks does a holiday let carry?

Frequent changeovers mean more wear, more chance of accidental damage, and strangers with keys, which raises the theft and liability exposure. Public liability matters more than for a normal let, because paying guests who are injured can claim. Periods empty between bookings can also trigger unoccupancy conditions, so the cover needs to handle short voids.

Does it matter if I let through Airbnb?

Yes. Letting through a platform such as Airbnb is still commercial short-term letting, and any host protection the platform offers is limited and not a substitute for your own insurance. A proper holiday let policy covers the building, your liability to guests and your income in a way platform guarantees do not.

Getting the cover right

Holiday let cover needs to match how often you let, whether you use a platform, and the periods the property stands empty. A broker can arrange cover built for short-term letting rather than a poorly fitting home or buy-to-let policy. To review your property cover, call 01795 841 310 or speak to the team.

Related guides: tax investigation insurance for holiday let owners.

Who needs holiday let insurance

Anyone taking money from guests for short stays needs cover written for that use. Typical UK examples include:

• A couple letting a cottage in Cornwall, Norfolk or the Lake District for most of the year through an agency.
• The owner of a city flat in Edinburgh, York or Bath let for weekend breaks through booking platforms.
• Families who let their own home or a second home for a few weeks in summer and use it themselves the rest of the year.
• Farms and rural businesses running lodges, converted barns or glamping units alongside the main business.
• Leaseholders letting a flat short term, who also need to check that the lease allows it and how the block buildings policy treats letting.

Safety rules that affect your cover

Many policies include a condition that you comply with the law. Falling short can put a claim at risk, and some breaches are criminal offences.

• Fire safety in England and Wales. The Regulatory Reform (Fire Safety) Order 2005 applies when you charge someone to stay, including in self-catering accommodation. You must carry out a suitable and sufficient fire risk assessment and keep a record of it. Government guidance on making small paying guest accommodation safe from fire explains what is expected.
• Gas safety. The Health and Safety Executive lists rented holiday accommodation, such as cottages, flats and chalets, as covered by landlords’ gas safety duties. That means a gas safety check every year on each gas appliance and flue.
• Scotland. Short-term lets need a licence from the local council. Licence conditions include buildings insurance valid for the duration of the licence and public liability insurance valid for each let, along with a gas safety certificate dated within the last 12 months and electrical safety reports.
• England. Government guidance says a national registration scheme for short-term lets is expected to begin in March 2027. It is not yet in force.

Common exclusions

• Unoccupancy. Many policies restrict cover for escape of water, theft and malicious damage once the property has been empty for a set number of consecutive days.
• Wear and tear and gradual damage, such as slow leaks, damp and rot.
• Theft by guests without forced entry, which some policies exclude or limit unless you add it.
• Parties and events you did not allow, where the policy limits malicious damage by guests.
• Lost bookings for reasons other than insured damage, such as guest cancellations, travel disruption or a quiet season.
• Undisclosed use, such as letting more weeks, to larger groups or for events beyond what you told the insurer.

What affects the premium

• The rebuild cost of the property, which should come from a proper valuation rather than the market price. See our guide to reinstatement cost assessments.
• Location, including flood and subsidence risk and local crime levels.
• Construction, age and listed status. Listed, thatched and older properties usually cost more to rebuild.
• How many weeks a year you let and how bookings are taken.
• The value of contents and any high value items.
• Extras offered to guests, such as hot tubs, pools, bikes or kayaks, which raise the liability risk.
• Security, such as locks, alarms and how keys are handed over.
• Your claims history, the excess you choose and the level of loss of income cover.

How a claim works, step by step

1. Make it safe. Protect guests first, then stop further damage, for example by turning off the water or boarding a broken window.
2. Report crime. For theft or malicious damage, tell the police and keep the crime reference number.
3. Tell your broker or insurer quickly. Most policies require prompt notice.
4. Record everything. Photos, video, booking records, guest details and changeover notes.
5. Keep evidence. Hold on to damaged items unless told otherwise, and keep receipts for emergency repairs.
6. Show the lost income. For a loss of rental income claim, gather cancelled bookings and previous booking records.
7. Agree the repairs. The insurer may send a loss adjuster. Agree the scope of work before major repairs start, other than emergency work.

Worked examples

These examples are hypothetical and are only meant to show how cover can respond.

A burst pipe between bookings

A pipe bursts in a Northumberland cottage during a changeover gap. Ceilings come down and the next six weeks of bookings are cancelled. Buildings cover pays for the repairs, contents cover for damaged furniture, and loss of rental income cover for the cancelled weeks, each subject to the policy limits and excess. Had the cottage been empty for longer than the unoccupancy period, escape of water cover could have been restricted.

A guest injury

A guest trips on a loose stair carpet and breaks a wrist, then claims compensation. Property owners’ liability responds, and the insurer handles the claim. Records showing regular checks between stays help the defence. Our guide to public liability insurance explains how liability claims are assessed.

Frequently asked questions

Do I need holiday let insurance if I only let for a few weeks a year?

Usually, yes. Even occasional paying guests change the risk, and many home policies exclude letting. Some home insurers allow limited letting if you tell them first, so get that confirmed in writing before you take a booking.

Is public liability insurance a legal requirement for holiday lets?

In Scotland, yes: short-term let licence conditions require public liability insurance valid for each let. Government guidance for England says you should have public liability cover, and many agencies expect it.

Does holiday let insurance cover guests’ belongings?

Usually not. Guests’ own possessions are their responsibility, typically through their own travel or home insurance. Your policy covers your contents and your legal liability.

Can I claim for cancelled bookings?

Only where you have loss of rental income cover and the cancellation follows insured damage that makes the property unfit to let. Cancellations for other reasons are not usually covered.

What counts as unoccupied for a holiday let?

Policies usually define it as a set number of consecutive days with no guests and no owner staying. Check how your policy treats long winter gaps and whether visits by a cleaner or caretaker count.

Do I need a separate policy for each holiday let?

Not always. Owners with several properties can often insure them under one policy, with a sum insured and liability cover for each address.