Holiday let insurance: what you need and what it costs
Holiday let insurance is not the same as standard home insurance. Owners need specialist cover including buildings, contents, public liability and loss of income protection. Costs typically range from £300 to £800 a year depending on the property.
If you own a holiday let, one of the first things you need to get right is insurance. Standard home insurance will not cover a property that is regularly let to paying guests, and getting caught without the right policy could leave you seriously exposed.
Insurance is one of the key costs of running a holiday let, but it is also one of the most important. Here is what you need, what it covers, and what you can expect to pay.
Why standard home insurance is not enough
A typical home insurance policy assumes the property is your primary residence. When you let it to guests, the risk profile changes completely. There is more footfall, more wear and tear, and a greater chance of accidental damage. Most standard insurers will void your policy if they discover the property is being used as a short-term let.
Specialist holiday let insurance is designed for exactly this situation. It covers the unique risks that come with welcoming guests into your home on a regular basis.
What cover do you need?
A good holiday let insurance policy should include the following:
- Buildings insurance: Covers the structure of the property against fire, flood, storm damage and subsidence.
- Contents insurance: Covers furniture, appliances, fixtures and fittings against damage or theft by guests or third parties.
- Public liability: Protects you if a guest or visitor is injured on your property. Most policies offer between £1 million and £5 million of cover.
- Loss of income: Covers lost rental income if the property becomes uninhabitable due to an insured event.
- Employer’s liability: Required if you employ cleaners, gardeners or other staff directly.
What does holiday let insurance cost?
Costs vary depending on the property size, location, rebuild value and level of cover. As a rough guide:
- Small apartment or cottage: £300 to £500 per year
- Mid-sized family home: £400 to £600 per year
- Larger or high-value property: £500 to £800+ per year
Properties in flood-risk areas or with features like hot tubs, swimming pools or thatched roofs will typically pay more. It is worth shopping around and using a specialist broker who understands the holiday let market.
Does your co-host help with insurance?
At HolidayHost, we do not arrange insurance on your behalf, but we do advise owners on what cover they need as part of our co-hosting service. Our Local Hosts can also help with practical steps that reduce risk, such as maintaining properties to a high standard and ensuring guest vetting is thorough.
For a full overview of the safety and compliance requirements that sit alongside insurance, see our holiday let compliance checklist.
Tips for keeping premiums down
- Maintain smoke alarms, carbon monoxide detectors and fire extinguishers (this also helps with fire safety compliance)
- Install quality locks and security lighting
- Keep a detailed inventory with photographs
- Consider a higher voluntary excess to reduce your annual premium
- Bundle buildings and contents cover with the same insurer
Getting the right insurance in place before your first guest arrives is essential. It protects your property, your income and your peace of mind.
