Short-let properties are not the same as standard buy-to-lets from an insurer’s point of view. Higher guest turnover, longer unoccupied gaps, and additional amenities like hot tubs or log burners all change the risk profile. Many claims are declined because a landlord used a standard landlord policy for a property that was being advertised on Airbnb or booking platforms. This guide explains what specialist holiday-let insurance should include, common exclusions, and how to avoid gaps.
Why Holiday Lets Need Different Insurance
- Paying guests create higher slip, trip and accidental damage risks than a single AST tenant.
- Turnover and cleaners increase keys in circulation and require more robust security conditions.
- Amenities such as wood burners, BBQs, hot tubs or pools add fire, water and injury exposures.
- Seasonality means longer voids, which can trigger unoccupancy conditions and reduced cover.
Core Covers in a Specialist Holiday-Let Policy
- Buildings – reinstating the structure, fixtures and fittings after insured perils such as fire, storm, escape of water and theft. Sums insured should reflect full rebuild cost, including any high-spec kitchens, bathrooms and outbuildings.
- Landlord contents – furniture, appliances, linens, TVs, outdoor furniture and décor that you provide. Tenants’ or guests’ personal effects are not covered by your policy.
- Public liability – protection if a guest, visitor or tradesperson is injured or suffers property damage and alleges negligence. A £5m limit is common for holiday lets given guest numbers and activities.
- Loss of rent or loss of booking income – pays income lost while the property is uninhabitable after an insured event. Check whether the policy measures loss by booked stays or by a general rent proxy and confirm the time limit.
- Accidental damage by guests – often available as an extension. Useful where you provide furnishings and electronics.
- Malicious damage by guests – not always standard. Some policies only cover malicious damage by tenants, not paying guests. Ask specifically.
- Employers’ liability – required in law if you employ cleaners, gardeners or maintenance staff directly.
- Trace and access – covers the cost of locating the source of a leak, especially helpful where multiple bathrooms are present.
Common Exclusions and Conditions That Catch Hosts Out
- Using a standard landlord policy – many policies exclude paying guests. Advertising on Airbnb without a suitable endorsement can invalidate cover.
- Theft without forcible entry – some wordings will not pay if there is no sign of forced entry. Key-safe usage should follow the policy’s security conditions.
- Unoccupancy limits – cover can reduce after 30 days empty unless you heat, drain down and inspect at set intervals. Holiday lets often face seasonal voids, so check the schedule carefully.
- Hot tubs, pools and saunas – bacteria control, covers, fencing and signage may be required. Neglect of maintenance can void related claims.
- Pets – damage caused by pets is frequently excluded unless you purchase a specific extension.
- Business interruption nuance – booking cancellations due to lack of demand or travel disruption are not insured. Policies generally respond only when physical damage at the property makes it unusable.
- Contract works – refurbishing between seasons needs a works endorsement and proof that contractors carry their own insurance.
Loss of Rent vs Booking Cancellation
These terms are often confused. Loss of rent or booking income pays when an insured peril, for example a fire, flood or major leak, renders the home uninhabitable. It does not cover empty calendars caused by market conditions, bad reviews or travel restrictions. Booking cancellation protection, where available, is usually provided by the platform or a separate travel insurance policy taken out by guests. Hosts should not rely on property insurance to replace seasonal demand.
Security and Key Management
- Follow any lock standards specified in your policy, for example BS3621 on external doors.
- Use a robust key-safe and rotate codes frequently. Keep a log of changes and guest issue dates.
- Where smart locks are fitted, maintain software and access logs and document procedures for lost credentials.
- Install external lighting and, if appropriate, a monitored alarm. Confirm any alarm requirements in the policy wording.
Documentation That Speeds Up Claims
- Proof that the property is insured on a holiday-let or paying-guest basis, not standard AST.
- Guest house rules and safety information, including instructions for stoves, BBQs and hot tubs.
- Cleaning and maintenance logs, particularly for water hygiene in hot tubs and pools.
- Electrical and gas safety certificates, chimney sweep records where relevant, and appliance manuals.
- Photographic inventories at the start of each season and after significant guest-reported incidents.
Platforms, Mortgages and Leases
Before listing, check that your mortgage conditions and any lease or head lease permit short-term letting. Breaching mortgage or lease terms can have serious consequences and may also affect insurance if you fail to disclose a material fact. You should disclose platform use, typical occupancy, and amenities to your insurer or broker at quotation stage.
Example Scenarios
- Kitchen fire during a weekend stay. Buildings and landlord contents respond, with loss of booking income until reinstatement. The insurer will ask for photos, guest statements and compliance documents.
- Theft of a TV with no sign of forced entry. Claim declined where the wording requires forcible and violent entry. A stronger key-safe protocol would have helped.
- Hot-tub leak damages flooring. Covered where accidental damage and trace and access are in place and water-treatment logs are up to date.
Checklist Before You Renew
- Confirm the policy is rated for holiday-let or paying-guest use, not a standard landlord AST.
- Review public liability – consider £5m as default for guest-facing properties.
- Check that accidental and malicious damage by guests are included where available.
- Set realistic loss-of-income limits based on peak-season rates and typical reinstatement times.
- Verify unoccupancy conditions for off-season voids and schedule inspections accordingly.
- Document key-safe or smart-lock procedures and comply with any security warranties.
Final Thoughts
Holiday lets and Airbnb properties are entirely insurable when you choose the right wording and follow the conditions. Most problems arise from using a standard landlord policy, overlooking guest-related exclusions, or missing unoccupancy rules. Treat documentation and maintenance logs as part of your insurance. With a specialist policy, claims are more straightforward and income is better protected.
Request your quote or call-back
The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.
Alternatively, you can use the form below to request one of our team to give you a call back.
Publication date: Tuesday 18 November 2025
