INSURANCE GUIDE Holiday Let Insurance UK - cover for short-term rental properties |
TL;DR
- Holiday let insurance is specialist cover for properties rented to short-term guests - standard home insurance and standard landlord insurance do not cover short-term holiday letting.
- Key differences from landlord insurance: higher guest turnover, furnished property, loss of holiday letting income, and public liability for guests as visitors.
- Loss of rental income cover pays the holiday letting income lost if the property is uninhabitable following an insured event.
- Guest public liability is an important inclusion - guests are visitors to the property and the owner owes them a duty of care under the Occupiers Liability Act 1957.
- Annual premiums typically range from GBP 200 to GBP 600 for a standard holiday cottage depending on location, size, and cover level.
Last reviewed: June 2026
KEY FACTS | |
| What it covers | Buildings, contents, loss of holiday rental income, owners liability, and optional legal expenses |
| Why standard policies fail | Standard home insurance excludes commercial letting. Standard landlord insurance is designed for long-term AST tenancies, not short-term holiday guests |
| Loss of income | Pays the holiday rental income lost while the property is uninhabitable following insured damage |
| Owners liability | Covers injury to guests and visitors at the property - essential given the higher turnover of guests vs long-term tenants |
| Platform letting | Airbnb, Vrbo, and Sykes Cottages all recommend or require host insurance beyond platform guarantees |
| Annual premium range | GBP 200 to GBP 600 for a standard 2-3 bedroom holiday cottage |
What Is Holiday Let Insurance?
Holiday let insurance is specialist buildings and contents insurance for residential properties that are let on a short-term basis to holiday guests, typically through platforms such as Airbnb, Vrbo, Sykes Cottages, or direct booking websites. The risk profile of a short-term holiday let differs significantly from a standard long-term residential tenancy, and both standard home insurance and standard landlord insurance are not designed to cover this use.
A property rented to holiday guests experiences higher occupancy turnover, more frequent different users, higher risk of accidental damage from varied guests, and different liability exposure (guests are visitors to whom the Occupiers Liability Act 1957 applies) compared to a long-term tenant. Holiday let insurance is underwritten to reflect these specific characteristics.
KEY FACTS
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How Holiday Let Insurance Differs from Landlord Insurance
Standard landlord insurance is designed for long-term Assured Shorthold Tenancy (AST) lettings - one or two tenants, typically with 6 to 12 month tenancies, and relatively predictable occupancy. Holiday lets involve: higher guest turnover (potentially 50+ different parties per year); furnished properties with more contents exposure; guests as visitors (higher liability duty of care) rather than tenants; a higher risk of accidental damage from varied guests; and income that fluctuates seasonally. Holiday let insurance reflects all of these factors in its underwriting.
Key additional covers in holiday let insurance compared to standard landlord insurance: loss of holiday rental income (calculated differently from standard loss of rent); guest public liability (owners liability for visitors); accidental damage by guests (higher risk than long-term tenants); and emergency 24-hour assistance for guest issues.
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Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Does standard home insurance cover Airbnb letting?
No. Standard home insurance is designed for owner-occupied residential properties. Letting the property on Airbnb or any other short-term platform is a commercial activity that standard home insurance typically excludes. Using a standard home policy for a holiday let is a material non-disclosure that voids the policy. Specialist holiday let insurance is required.
Does Airbnb insurance replace dedicated holiday let insurance?
No. Airbnb provides a Host Guarantee (covering property damage by guests up to a limit) and Host Protection Insurance (covering host liability). These are supplemental protections, not insurance policies, and have significant limitations. Most holiday let insurance specialists recommend arranging dedicated holiday let insurance for comprehensive protection of the property, income, and liability.
Does holiday let insurance cover long empty periods in winter?
Most holiday let insurance policies cover void periods between lettings. The policy conditions during extended void periods should be checked - some policies require a minimum heating level and property inspection during extended winter voids. Notifying the insurer if the property will be empty for more than 30 to 60 consecutive days is typically required.
Can I get holiday let insurance for a property abroad?
UK-based holiday let insurance is typically for UK properties. Properties abroad require local insurance in the country where the property is located, subject to the local insurance regulatory regime. Some specialist UK brokers can arrange insurance for holiday lets in popular European destinations (France, Spain, Portugal) through local insurer partners.
Does holiday let insurance cover malicious damage by guests?
Most holiday let insurance policies include malicious damage by guests as a covered event. This is important as it addresses the specific risk of deliberate damage by a guest party. Accidental damage by guests is also commonly included. Both are relevant because the high turnover of different guests increases the exposure to both accidental and deliberate damage.
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