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, get a quote or speak to the team.