Insurance for the holiday let market is often confusing. It leaves homeowners unsure of the correct course of action, and unaware of their obligations. The first, and perhaps most important point to clarify, is that normal home insurance will not cover a property if it has paying guests. There are several implications to this, which are further explained in this blog.
As a holiday-let owner, there are two avenues to consider depending on your circumstances.
The first, and perhaps most straightforward, is simply a yearlong policy specifically tailored to holiday let properties. There are various brokers available in the U.K, many of which cover both buildings and contents insurance for your home. The fundamental distinction between holiday let insurance and home insurance is contents cover and public liability; both specifically in relation to paying guests. This means that if a guest is injured in your home and takes legal action – you are covered as long as you have taken out the proper insurance. A normal home insurance policy is void with paying guests.
The second kind of holiday let insurance covers part-time properties. There are companies who provide holiday let insurance on a nightly basis – converting their home insurance into holiday let insurance for a nightly fee. These companies call themselves the insurance providers for the sharing economy, as they clearly fit into the new platform lead home sharing market. This kind of insurance allows for the flexibility of part time holiday letting, while retaining normal home insurance. This strategy would not be economical for a full-time host.
A few important points to note:
- Your holiday let insurance will be void if you do not possess up to date safety certification. This is another reason why your certification should always be up to date. For more information, contact us on firstname.lastname@example.org
- We are not affiliated with any specific provider. Unfortunately, this means we are not able to provide advice or select advisors
- Some platforms, such as Airbnb, provide some form of cover if you are renting out your home. This is by no means comprehensive however, as stated by Airbnb. For more information on the Airbnb Host Guarantee, click here