Holiday Let Insurance

Holiday let insurance protects property owners who want to rent out their holiday home. While letting a property seems simple enough, there are a surprising number of pitfalls to avoid. One of the best ways of doing so is by taking out comprehensive holiday let cover.

This article contains a thorough guide to holiday let insurance. From policy detail to the reasons you might want to consider insurance, we provide informative answers to those questions we most regularly receive.


So what is a holiday home and what is a holiday let?

Technically, a holiday home is any property that is not your primary residence. In most cases, it does not matter what you use the property for. Whether you restrict its use to you and your family, allow friends and family to stay free of charge, or rent the property commercially, if it is not your main home, it is classified as a holiday home.

Holiday lets are a specific type of holiday home. They are any holiday property you rent out for financial gain. However, to qualify the property for relevant holiday let tax breaks, you need to meet two more conditions. The property must be fully furnished and be available to let for at least 210 days in every tax year.


Shows the interior of a beautifully designed holiday home


What does holiday let insurance include?

Usually, holiday home insurance comprises two core components:

  • Building cover
  • Content cover

Building cover encompasses the structure and permanent fittings and fixtures. This typically means features like the ceiling, floors, kitchen, bathroom, garages and outbuildings. However, policies differ in the details, so make sure you check any prospective deals thoroughly.

Content cover includes personal belongings. This is taken to mean items like furniture, appliances, soft furnishings and electrical goods. Typically, it does not include guests’ personal possessions.

As well as these two core components, most holiday let insurance providers allow you to build out your cover with add-ons. This can include the following types of insurance:

  • Accidental damage by guests
  • Theft by guests
  • Loss of income because of cancelled bookings
  • Legal expenses in the event of disputes
  • Property owner liability insurance
  • Employer’s liability insurance


Why is holiday let insurance different from traditional home insurance?

Holiday home insurance differs because the risks associated with holiday properties differ from traditional homes. For instance, as the house is not permanently occupied, it is more vulnerable to break-ins.

Similarly, because you provide access to lots of different people, there is a higher chance of someone taking advantage of the letting arrangement to enter the property without your permission.

However, the main reason holiday home insurance differs is that paying guests can cause significant damage to the property or hurt themselves while staying in the house. As the letting agreement is a commercial arrangement, you may be responsible for those injuries. This aspect of an insurance policy is known as property owner liability cover.

In other words, this type of insurance differs from traditional home insurance because it protects you against risks specific to rental properties.


Holiday let insurance - Shows a grand four poster bed in a cottage


Why do I need holiday home insurance?

Taking out holiday let insurance is a good idea for several reasons. But they generally fall under two umbrella categories – peace of mind and financial protection.

Insurance provides peace of mind by reassuring you that your valuable property is protected should the worst occur. For many holiday let owners, this is invaluable. Constantly worrying about whether your property will be okay is stressful. Insurance alleviates that stress.

When it comes to financial protection, you must recognise that your holiday let is an investment. That investment has to deliver a return. Insurance guarantees that return by promising financial recompense should your income be threatened. In the case of considerable damage, it also enables you to return the property to a rentable standard without paying for repairs out of your pocket.


Do I need to take out holiday lodge insurance?

In general, holiday home insurance is not mandatory. However, in some cases, circumstances make it necessary. For instance, most mortgage providers will insist you take out building insurance before they agree to mortgage the property. This guarantees their investment should anything happen.

Another instance when you are required to take out insurance is if you employ people at the property. In this case, you will need employers’ liability insurance.

Though holiday let insurance is not mandatory, it is highly recommended. Like all significant investments, protecting yourself and your finances is essential.


Wooden lodge in a remote mountain area


What is property owners’ liability insurance?

Property owners’ liability cover is a lesser-understood aspect of insurance. It protects you in cases where a guest has an accident or injures themselves while on your property. If taken to court and found to have acted negligently, you could face severe financial penalties. Something as small as a missing screw in a light fitting or a loose paving slab can lead to negligence claims, so do not underestimate the potential for legal trouble.

Propety owners’ liability insurance covers legal expenses and any compensation you have to pay out due to legal processes. Considering the high fees associated with court cases, it often saves property owners considerable amounts.


What if my holiday let is abroad?

Many insurance companies do not cover holiday lets abroad. This is usually due to the complex differences in rules and regulations between countries. Insuring a property outside the UK requires specialist knowledge of the local market, rules and regulations.

If you are searching for holiday let insurance for a property in another country, we recommend looking for a company with specialist experience dealing with international properties or a broker in the country itself.


Holiday home insurance - Shows a luxury villa in Spain


Park Insurance has provided specialist insurance services to a wide range of industries for more than 30 years. During that time, we earned a reputation for excellence and created many of the industry’s most innovative digital offerings, including Easy2Insure, Pet Secure, Salon Secure and Secure Underwriting.

If you are looking for comprehensive and cost-effective holiday home insurance that covers everything you need, please don’t hesitate to get in touch with one of our experienced and professional team members. They will be more than willing to help you.

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