Holiday let insurance explained: public liability, buildings and contents
Holiday let owners need specialist insurance that goes beyond standard home cover. Public liability, buildings, contents and loss of income protection are all essential. Knowing what is legally required versus what is recommended helps you make the right choices.
Insurance is one of those things you hope you never need, but when something goes wrong, the right policy is the difference between a manageable situation and a financial disaster.
For holiday let owners, the insurance landscape is more complex than for a standard residential property. This guide explains the key types of cover, what is required and what is strongly recommended. For the broader compliance picture, see our holiday let compliance checklist.
Public liability insurance
This is arguably the most important cover for any holiday let owner. Public liability insurance protects you if a guest, visitor or member of the public is injured at your property, or if their belongings are damaged as a result of your property’s condition.
While not technically a legal requirement, it is considered essential by virtually every industry body and most booking platforms. A claim from a guest who trips on a loose step or is injured by a faulty fixture could run into tens of thousands of pounds without cover.
Most policies offer between £1 million and £5 million of public liability cover. We would recommend £2 million as a minimum.
Buildings insurance
Buildings insurance covers the physical structure of your property against damage from fire, flood, storm, subsidence and other insured perils. If you have a mortgage on the property, your lender will almost certainly require this.
Make sure your policy specifically covers holiday letting use. A standard residential buildings policy may not pay out if the insurer discovers the property was being let to paying guests.
Contents insurance
Holiday let contents insurance covers your furniture, furnishings, appliances and equipment against damage, theft or destruction. This includes everything from sofas and beds to kitchen equipment and televisions.
Given that guests will be using your property regularly, accidental damage cover is particularly important. Check that your policy covers guest-caused damage, not just burglary or weather-related events.
Loss of income insurance
If your property becomes uninhabitable due to an insured event, such as a fire or flood, loss of income insurance covers the rental income you would have earned during the repair period. For properties that generate significant seasonal income, this cover can be invaluable.
Employer’s liability insurance
If you directly employ anyone to work at your property, whether that is a cleaner, gardener or maintenance person, employer’s liability insurance is a legal requirement. The minimum cover is £5 million.
If your cleaners and maintenance providers are self-employed or work through a company, this requirement does not apply to you, but check the arrangement carefully.
Additional cover to consider
- Legal expenses cover: Helps with the cost of legal disputes related to the property
- Home emergency cover: Covers call-out costs for boiler breakdowns, plumbing emergencies and electrical failures
- Hot tub or swimming pool cover: Specialist cover if your property has water features
How HolidayHost helps
We do not arrange insurance for owners, but we do advise on what cover you should have in place. Our guest vetting processes also help reduce the risk of damage and claims, and our Local Hosts are on hand to deal with incidents quickly if they arise.
Platforms like Airbnb offer their own protection programmes (such as AirCover), but these should be treated as supplementary, not a replacement for your own comprehensive insurance policy.
For a look at all the costs of running a holiday let, including insurance, see our complete guide.
