Holiday let insurance

What is holiday let insurance?

Holiday let insurance can help protect a property you own that isn't your primary residence. Whether you use it for holidays, rent it out to friends and family or paying guests, you could need specialist insurance.

It's unlikely that a standard home insurance policy will cover you if you're letting out your property. That's because home insurance policies tend to exclude use of a property for commercial gain. This is noteworthy given the rise in popularity of accommodation websites such as Airbnb.

Instead, holiday let insurance is tailored to protect you against the specific risks of letting out a holiday home.

What is covered by holiday let insurance?

A holiday let insurance policy is similar to a home insurance policy in that it can protect a building and its contents. You'll also usually be required to buy buildings insurance at a minimum if you have a mortgage on your let property.

If you decide to include contents insurance, you could be protected against:

Injuries sustained by guests (also known as public liability cover)
Buildings damage sustained as a result of storms or floods
Damage or loss of contents caused by floods, fire, or storms
Stolen contents or malicious damage
Accidental damage

If you buy holiday let insurance, it typically states that your cover could be invalid if the property is left unoccupied (usually beyond 30 days). On that note, there are some common exclusions to be aware of, such as:

Wear and tear
Shoddy workmanship or building work
Contents taken outside of the property

Does holiday let insurance cover accidental damage?

Potentially. Some policies include accidental damage cover as standard, others may offer it for an additional cost.

Accidental damage can provide cover if you or any guests unintentionally damage parts of your property or the contents inside it. If you are considering this type of cover, you should check whether it's included as standard before buying a policy. It could save you a few quid!

Does holiday let insurance cover buildings and contents?

Holiday let insurance tends to cover both buildings and contents in a combined policy. Every insurer is different, so you'll need to double-check this before buying a policy!

If you only need buildings insurance, for example, you should search for holiday let policies that only offer this type of cover. It could help you save money. But it's always worth comparing the cost against a combined policy, it might only be a slight increase and offer you greater peace of mind.

Do I need holiday let insurance?

It's not a legal requirement, but a mortgage lender might insist you have buildings insurance in place. But having holiday let insurance in place could offer peace of mind, especially if you're renting your property out.

If some of the furniture in your holiday let property is broken by paying guests, could you afford to pay to replace or repair the affected items? Or pay for an expensive out of hours call out bill if your property suffers a boiler breakdown?

If a guest falls on the property and decides to claim compensation, can you cover legal fees and any potential payouts?

Holiday let insurance can provide you with cover for these types of situations. It means that should anything go wrong, you won't be left paying out of pocket for unexpected large bills!

What type of holiday lets does the insurance cover?

A cottage, a lodge, or a typical house—holiday let insurance can cover all sorts of properties.

The crucial part is whether the usage of the property meets the criteria set out by an insurer. You'll need to be truthful and transparent when you're searching for a quote.

Insurers will want to know how often you let out your property and what it's primarily used for. This ensures your cover is valid for your own circumstances.

Do I need holiday let insurance abroad?

It'll work in the same way as holiday let insurance does in the UK, especially if you have a second property you use to rent out. Although, there are a couple of points to be aware of:

Make sure the country your property is located in is covered: Insurers typically set out a list of popular destinations where cover is valid. You'll need to check this, as if your country isn't listed, you won't have any cover!
Check your policy over to ensure it protects what you need it to: Is your property near a coastline? It could be at an increased risk of flooding or other natural disasters. It's worth scoping out whether you have cover for these potential eventualities.

If you can't find a UK insurer who can provide holiday let insurance for your property. It might be worth checking out local insurers who can offer a similar policy. Just bear in mind that you'll need cover that extends to commercial use of a secondary property and the associated risks!

How much does holiday let insurance cost?

If you're looking for a combined buildings and contents holiday let insurance policy, prices vary but you can expect to pay between £300-600.

This is a ballpark range, what you pay for insurance is calculated based on a number of factors, including:

How the property is used
The cover you need and the cost of optional extras
The location of the property
The size and type of building
Rebuild cost
How often you let the property

So, there isn't a fixed cost of holiday let insurance. What you pay largely comes down to your own situation.

Frequently asked questions

What insurance do you need for a holiday let?

Letting out your secondary holiday home is different than living in your permanent residence. As such, the associated risks are different. These risks might be excluded under a standard home insurance policy.

So, a specialist policy can ensure you're covered if you decide to let your holiday home—giving you peace of mind!