Renting out a home on Airbnb or as a holiday let is becoming really popular, but regular home insurance doesn’t always cover it. Although you may not think of yourself as a “landlord”, this insurance is often the right choice.

Holiday let landlord insurance is special insurance that protects Airbnb hosts and holiday let owners from risks when you let guests stay in your property in the UK. This guide explains the different types of insurance you might need if you rent out a property in the UK and how to make sure you are fully covered for any unexpected incidents.

What is Holiday Let Landlord Insurance?

Holiday let landlord insurance is designed for UK properties rented to guests for short stays, whether through Airbnb, another site, or privately. It can cover risks that standard home insurance doesn’t, making it essential for anyone looking to make money from short-term rentals.

A property is considered a holiday let if:

• It’s rented to holidaymakers for 31 days or less.
• The entire property is rented out, not just one room.
• The primary use is for rental rather than personal use.

Why Do You Need Holiday Let Insurance?

• Can protect against damage caused by guests and legal claims if someone gets hurt.
• Some mortgage lenders and holiday let platforms require insurance.
• It could cover unexpected problems, like fires, floods, or theft.
• It can ensure that you are compliant with regulations and insurance requirements.
• It can provide peace of mind when renting out your property to strangers.

Does Airbnb Cover You?

• Airbnb has a Host Guarantee, but it’s there’s lots that it doesn’t cover.
• It won’t cover all types of damage, particularly wear and tear.
• Their liability protection only applies to injuries that happen during a guest’s stay.
• If something serious happens, Airbnb might ask you to deal with the guest first.
• You may still be responsible for large repair costs if damages exceed Airbnb’s coverage.
• Airbnb’s coverage does not replace a full insurance policy.

Things to Think About …

Is It Your Main Home or a Second Home?

• Different rules apply if you’re renting out a second home versus your primary residence.
• Some insurers have special policies for second homes with different coverage levels.
• Leaving a property vacant for long periods may require additional coverage.

Do Mortgage and Legal Rules Apply?

• Check with your mortgage lender before renting out your home to avoid contract violations.
• Make sure you follow local council rules on short-term rentals and comply with tax laws.
• Some areas have limits on how many days per year a property can be rented out.

Is Airbnb’s Protection Enough?

• Airbnb’s AirCover doesn’t replace real insurance, so you may not want to rely on it as your only protection.
• Some other holiday letting platforms don’t offer protection at all, which could leave you financially vulnerable.

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Types of Insurance You Might Need

Essential Coverage

• Buildings Insurance: Covers damage to the property from fires, storms, floods, or vandalism.
• Contents Insurance: Protects furniture, appliances, and other belongings from theft or damage.
• Public Liability Insurance: Covers legal costs if a guest is injured at your property.
• Employers’ Liability Insurance: Required if you have staff working at the property, such as cleaners or maintenance personnel.
• Loss of Income Insurance: Helps if the property becomes unlivable, so you can’t rent it out and lose income.
• Fire and Flood Insurance: Ensures protection from natural disasters or unforeseen accidents.

Extra Coverage

• Accidental Damage Cover: Covers accidents like spills, broken furniture, or guest-related mishaps.
• Theft Cover: Protects against theft, even if the guest has a key or there is no forced entry.
• Legal Expenses Cover: Helps with disputes, evictions, and legal fees if a guest refuses to leave or damages property.
• Replacement Locks: Covers the cost of new locks if keys are lost or stolen by a guest.
• Emergency Cover: Helps with urgent repairs, such as plumbing issues or broken heating systems.
• Pet Damage Cover: Covers damage from pets if you allow them, including furniture and flooring damage.
• Alternative Accommodation: Pays for guest relocation if your property becomes unlivable due to damage or repairs.
• Excess Insurance: Helps cover the cost of excess fees when making a claim to reduce out-of-pocket expenses.
• Pest Infestation Cover: Pays for pest control if needed, such as bedbugs, rats, or termites.
• Extended Liability Cover: Ensures protection against legal claims beyond basic public liability coverage.

How to Save Money on Insurance

• Compare Different Quotes: Check multiple insurers to find a good deal.
• Don’t Over-Insure: Make sure your cover matches the actual value of the property and contents.
• Improve Security: Installing strong locks, CCTV, and security systems can help lower costs.
• Choose a Higher Excess: This can lower your premium, but you’ll pay more if you make a claim.
• Bundle Policies: Get buildings and contents insurance together to save money.
• Pay Yearly: Monthly payments usually cost more overall due to added fees.
• Keep a No-Claims Record: Avoid small claims to keep your discount.
• Negotiate With Insurers: Some companies may offer discounts for long-term customers.
• Review Policy Annually: Ensure you’re not paying for unnecessary coverage and update as needed.

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Steps to Take Before You Start Renting

Before Listing Your Property

• Check your mortgage and insurance rules to avoid breaking any agreements.
• Make safety upgrades like installing smoke alarms, carbon monoxide detectors, and fire extinguishers.
• Prepare your home to be clean, well-maintained, and guest-ready.
• Understand Guest Policies: Ensure clear rules about pets, parties, and damages.

Picking the Right Insurance Provider

• Consider insurers that specialise in holiday lets and short-term rentals.
• Don’t just go for the cheapest policy – look for comprehensive cover that fits your needs.
• Check if the provider is FCA-regulated (Financial Conduct Authority) to ensure reliability.

Ready to start your holiday let?

Getting the right insurance is really important if you’re letting out your property, whether it’s on Airbnb or another holiday let site. It can protect you from damage, legal claims, and loss of income. Make sure you read policies carefully, compare insurers, and get the right level of cover for your needs to protect your property and your business effectively.

Protection & Peace of Mind

Insurance isn’t always a legal requirement for every situation, but it can so often provide reassurance and security for you, your business and your family. Explore more types of insurance below – and discover easy ways to compare great quotes from UK insurance companies, thanks to our partnership with Quotezone.co.uk