Do you need holiday home insurance?

Whether you've got a spare room on Airbnb or spend summers in a second property overseas, your insurance requirements can quickly become complicated. 

Here, we explain the kinds of cover you'll need if you let out part of your main - or a secondary - home, leave your house unoccupied for extended periods, or need to cover a holiday home.

Do I need special insurance for a holiday let?

The answer is likely to be yes if you rent out a holiday home to seasonal guests, let out your own home while you're on holiday, or put spare rooms on a hosting website such as Airbnb.

If you're using part of a property for commercial gain or business purposes, it's crucial that you tell your insurer - whether it's a 'normal' insurer or one providing a more specialised type of cover.

If you're using the property in this way and haven't declared it, it could invalidate your cover.

You'll likely need specialised cover to be fully protected should something go wrong with the let.  

Holiday let or host insurance 

Some home insurance policies offer host insurance as a standard add-on, which will increase your monthly premiums but save you in the long run if guests come to harm in your home or damage it.

Alternatively, you might choose to get supplementary cover from another provider.

Airbnb cover

Airbnb offers its own protection, known as AirCover, when you apply to be a host.

This reimburses your costs if guests damage the property and provides liability insurance if they're hurt. 

It won't necessarily provide all the cover you want, and it isn't a replacement for your standard home insurance, so it will still be necessary to check that you're sufficiently covered. You may still need to buy supplementary insurance. 

• Find out more: home insurance add-ons, fees and charges explained

What else do I need to consider before renting out my home?

• Your landlord Breaching your lease could result in penalties, so check the terms and conditions.
• Your mortgage provider While short-stay lodgers are generally allowed, check before you rent out your entire home. You may be asked to move onto a buy-to-let mortgage.
• Building rules If you live in a block of flats, there may be rules on renting out your property.
• Tax Income tax will apply to any money you make, although the Rent a Room Scheme allows you to earn up to £7,500 a year tax-free (and avoid filling in a tax return) if you also live in the property.

Holiday home insurance

If you own an additional home which you or your family occupy seasonally, and/or is let out for paying guests, standard home insurance won't cut it - you'll need to buy specialised holiday home insurance. Like standard home insurance, holiday home cover levels vary by provider. But a good policy should provide options to protect the buildings and contents within the property, and against events such as fire, storm, flood, escape of water, theft and malicious damage. Some will also cover accidental damage caused by guests. 

How is insuring a holiday home different from insuring my permanent home?

Because you're not occupying the property full-time, the risks of covering a holiday home are different than for covering a main residence. 

• If a leak occurs or an electrical fault sparks, it may take longer to discover, and the damage could be significantly worse.
• Empty houses are easier to break into.
• Guests may cause damage to your property or injure themselves.
  

Find out more: best home insurance 2026

What does insurance for holiday homes cover?

In addition to the usual things covered by standard home insurance, features of specialised holiday home cover can include: 

• emergency travel – if you need to travel to your holiday home to fix a leaky dishwasher or burst pipe
• loss of income – if you're letting the property and lose out on rental income while it's being repaired
• liability insurance – covers the cost if someone takes you to court because they have been harmed in your home. You'll also need this if you employ any staff.

If you're planning to use your holiday home for stag or hen parties, extended lets, or if you have more than a certain number of bedrooms, check with the insurance provider before taking out a policy, as they may not be covered.  

Do UK insurers cover overseas holiday homes?

Yes. This means you can secure comprehensive coverage without needing insurance from the country where your holiday home is located. Popular European destinations such as France, Spain, Portugal and Italy are often covered by UK insurers.

Choosing insurance from UK providers has its benefits. You'll communicate with English-speaking staff and have all your paperwork in English, making the claims process easier, especially if you're not fluent in the local language.

Cover may vary depending on factors such as the risk of natural disasters in the area. However, UK insurers aim to meet the needs of individuals seeking to protect their holiday homes abroad, ensuring peace of mind for property owners regardless of their location.

• Find out more: overseas mortgages explained

How much does it cost to insure a holiday home? 

The cost of holiday home insurance will vary from property to property. Your insurance provider will consider such factors as its size, location, how often it's occupied, and the value of the property and its contents. 

When deciding how much to charge guests, consider the premiums alongside the property's running costs and mortgage payments (if you have one).

Insuring your home while you're on holiday

Most normal home insurance policies have 'unoccupancy periods' of between 30 and 60 days. This is the number of consecutive days you can leave your home empty while retaining full insurance cover. 

If your home is likely to be empty for longer periods - for example if you're travelling or have a job that requires you to live away from home for a sustained period - you may need to get unoccupied property insurance to protect it. 

As with all other forms of cover, protection levels vary between policies. Some may cover you against malicious damage, storm damage, theft and escape of water (for example, leaking pipes), whereas the most basic policies may only protect against fire.