What Insurance do I need for a holiday let?
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When looking for the right insurance policy for a holiday let mortgage, it’s important to clarify what you should not do! Do not, under any circumstances, just source a normal residential buildings and contents policy and think you are sorted.
You will not be insured with a standard home insurance policy, and you risk losing many thousands of pounds. Furthermore, you could find yourself being taken court by one of your holiday let customers.
Finding the right policy
You will need to source and buy a specially tailored commercial holiday let insurance policy. The main difference between holiday let insurance and standard buildings and contents insurance is that the holiday let insurance cover needs to cover Public Liability. The fact that your property will be having regular visitors in and out means a specialist policy is required.
Most importantly, your policy needs to be insuring or covering a property that will be empty and unoccupied for long periods of time. Properties left empty are at greater risk to storm and frost damage, burst pipes and, of course, burglaries, hence they fall into a higher risk band that most residential homes.
Ultimately, if you are a holiday let owner, you are a commercial landlord and you should be advised on the correct insurance products.
Holiday Let insurance is not a legal requirement but an owner would be taking a disproportionate risk not having the proper cover. If there is a mortgage on the property, the lender will insist on the correct insurance and may ask to see your insurance schedule.
At House and Holiday Home Mortgages Ltd, we can assist you in arranging the correct cover by referring you to bona fide brokerages who will take the time and trouble to assess your needs.
A good holiday let buildings and contents insurance policy will ensure the following risks are all accounted for and covered:
- The fabric of the buildings to insure your property against storm and flood
- Public Liability Insurance. This is to cover you against a claim by a property visitor or one who may have tripped on an uneven path, or perhaps even one who has suffered a stray roof tile landing on them!
- Garden furniture such as hot tubs, swings and slides and shed contents.
- Loss of rent or income maybe because the property is unusable due to a storm claim
- You need to know that the contents in your property are covered against loss or damage by your staying guests. For example, they lose a set of keys meaning the locks need changing
- Chances are you are an employer if you own a holiday let. You may employ a gardener and cleaners. So, you will need to make sure you have employer’s liability cover.
A final note of caution…
If you rent a room on an Airbnb type basis, please ensure you have upgraded and changed your buildings and contents policy to reflect this change. Having paying guests in your home will probably negate your insurance cover. It’s often best to speak with an expert.
As with all the advice we give on the House and Holiday Home Mortgages website, we strongly urge you to take expert advice from a firm registered and authorised to sell general insurance products. Please explain that you are looking for 5-star Defacto type Holiday Let cover.