Insurance
Holiday Let Insurance:- What You Need To Know
By Heim Management | Based in North West England
No holiday let business is immune to the unexpected. That’s why having the right holiday let insurance is one of the most important steps in protecting your investment, and your income.
Why Standard Home Insurance Isn’t Enough
If your property is a second home and used for guest stays, standard home insurance won’t cut it. Holiday let insurance is tailored to cover the specific risks associated with short-term letting, including high turnover of guests, periods of vacancy, and the legal responsibilities of hosting.
It typically covers:
• Buildings and contents
• Public liability
• Accidental damage
• Theft or malicious damage
• Loss of income
• Legal expenses
• And more, depending on your provider
What Should You Disclose?
Always let your insurer know about key features of your property — such as hot tubs, swimming pools, ponds, wood burners, or any recent renovations. These elements can affect both your premium and your cover.
What You’ll Likely Need
Here are the key types of cover we recommend for our clients:
Buildings Insurance
Covers the structure of your property, including permanent fixtures like kitchens and bathrooms. Be sure to:
• Insure for the rebuild cost, not market value
• Include outbuildings, fences, and garages
• Check for restrictions on unoccupied periods
Contents Insurance
Covers furniture, appliances, and personal items inside your property. Consider:
• An accurate total sum insured
• Cover for high-value items
• Guest-related damage or theft
Public Liability Insurance
Absolutely essential — this protects you if a guest is injured on your property or causes damage to someone else’s property. Most agencies (including ours) require a minimum of £2 million in liability cover.
Theft, Malicious Damage & Security
Not all policies include theft or intentional damage by guests, so check this carefully. You’ll also want cover for:
• Loss of keys and lock replacements
• Security standards for doors and windows
Loss of Income
If your property becomes uninhabitable due to insured damage, this covers cancelled bookings and lost revenue.
Legal Expenses
Covers costs from legal disputes such as guest overstays, accidents, or property boundary issues. Often an inexpensive add-on, but well worth including.
Accidental Damage
Covers common incidents like broken furniture, stained carpets, or damaged appliances — especially important in high-traffic properties.
Alternative Accommodation
Should your property become uninhabitable during a guest stay, this can cover relocation costs and booking penalties.
Getting the Right Cover
When applying for insurance, have these details ready:
• Property value and rebuild cost
• Contents valuation
• Previous claims history
• Any known risks (e.g. flooding, structural changes)
How Much Does It Cost?
The average cost of holiday let insurance in the UK is around £481/year, but your premium will depend on:
• Property location and construction
• Security measures
• Guest turnover
• Past claims and cover levels
Properties near water, listed buildings, or homes with special features may carry higher premiums. It’s also worth comparing providers and reading reviews to assess customer service and claims handling.
Key Tips from Heim Management
• Always check your policy wording
• Be upfront about property features
• Review your cover annually, especially after any upgrades
• Speak to your insurer before making renovations
⚠️ Disclaimer: Regulations and insurance requirements can vary by region and Country. Heim Management is based in North West England, so always check with your local authority or governing body to ensure full compliance.
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