Holiday let insurance is a specialist type of property insurance designed for homes that are rented out to paying guests on a short-term basis (like holiday cottages, Airbnb rentals, or second homes used for vacation letting).
A standard home insurance or landlord insurance policy often won’t cover this kind of use because it carries different risks—for example, frequent guest turnover, accidental damage, or long periods of the property being empty.
A typical holiday let insurance policy usually includes:
Buildings insurance – covers the structure of the property against risks like fire, flood, storm, or subsidence.
Contents insurance – protects furniture, appliances, and other belongings provided for guests.
Public liability insurance – essential cover in case a guest is injured or their belongings are damaged while staying in the property.
Loss of rental income – compensation if the property can’t be rented out due to insured damage (e.g., fire or flood).
Accidental damage – cover for mishaps caused by guests, such as spills or broken furniture.
Employer’s liability – if you employ cleaners, gardeners, or maintenance staff.
Legal expenses – in case of disputes with guests, contractors, or suppliers.
It’s important because without the right policy, claims might be rejected if you only had regular home insurance but were letting the property to paying guests.
How holiday let insurance differs from standard landlord insurance:
1. Type of Tenancy
Landlord insurance: Designed for long-term tenants (usually 6–12 month assured shorthold tenancy agreements).
Holiday let insurance: Covers short-term rentals with frequent guest turnover (e.g., weekend or weekly stays).
2. Guest Risk Profile
Landlord insurance: Assumes stable, vetted tenants living in the property as their home.
Holiday let insurance: Assumes a higher risk because guests are short-term, often unfamiliar with the property, and may be less careful.
3. Usage of Property
Landlord insurance: Covers a consistent rental property, usually occupied most of the time.
Holiday let insurance: Covers a property that might be empty for long periods, then fully booked in peak season. This variation increases risks like theft, vandalism, or damage.
4. Loss of Income Cover
Landlord insurance: Protects against loss of rent if tenants stop paying or if the property becomes uninhabitable.
Holiday let insurance: Protects loss of rental income if bookings are cancelled due to insured damage (e.g., a flood right before peak season).
5. Public Liability
Landlord insurance: Includes liability cover for tenants, but usually in the context of long-term residency.
Holiday let insurance: Puts greater emphasis on public liability, since short-term guests are at higher risk of accidents (e.g., slipping on a wet floor, tripping over garden steps).
6. Extras
Landlord insurance: Often includes rent guarantee options (if tenants default on rent).
Holiday let insurance: Often includes accidental damage by guests, cover for things like hot tubs, swimming pools, or bikes provided for guest use.
In short:
If you rent out to long-term tenants → landlord insurance.
If you rent out to holidaymakers or short-term guests → holiday let insurance (or a specialist Airbnb/short-term rental policy).
To secure the right policy for your property and occupancy, contact the Assured Protect Advisers via the enquiry form below.
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