A Guide to Holiday Let Insurance, Including Airbnb

If you run a holiday let in the UK, including properties listed with Airbnb, you’re no longer just a homeowner; you’re operating a small hospitality business. This matters more than most people realise, particularly when it comes to insurance.

Assuming that your existing cover “should be fine” can be a problem, especially if you discover at the claim stage that your insurance policy doesn’t stretch nearly as far as you thought. With the growth of platforms like Airbnb, that gap is getting wider.

This guide cuts through the generic advice and explains what holiday let insurance actually needs to cover, based on how these properties are really used.

Why holiday lets are treated differently by insurers

On paper, a holiday let may resemble any other residential property. In reality, it behaves very differently as you have:

• Frequent guest turnover
• People unfamiliar with the layout
• Higher use of kitchens, bathrooms and heating systems
• Periods where the property sits empty

From an underwriting perspective, that introduces more risk and more unpredictability. That’s why most standard home insurance policies include clauses that either restrict or exclude:

• Short-term letting
• Paying guests
• Business use of the property

If you’re actively letting – even occasionally – you need a policy designed for that purpose. That’s where holiday let insurance comes into play.

The Airbnb question: What is covered?

Airbnb has done a good job of making hosting feel straightforward, including the impression that protection is built in. It is, however, important to separate marketing from reality.

Airbnb’s host protections (such as AirCover) can help in certain situations, but they:

• Come with conditions and exclusions that can be difficult to navigate
• Don’t always cover loss of income or long-term disruption

In practical terms, they’re a secondary layer, not your primary protection.

For example, there have been cases where:

• Damage is classed as “wear and tear” and declined
• Claims take longer than expected to resolve
• Lost bookings following damage aren’t fully compensated

A properly structured holiday let insurance policy fills those gaps, particularly around liability, structural damage and income protection.

What a good holiday let insurance policy should include

Not all policies are built the same, and this is where a lot of landlords get caught out, especially if they buy purely on price.

Buildings and contents insurance (with guest use in mind)

This isn’t just standard cover. You need protection that reflects the reality of:

• Frequent use of appliances and furniture
• Accidental damage by guests
• Higher turnover than a typical household

If your property is marketed as a premium stay, your contents value may also be significantly higher than that of a standard home, which some policies may underestimate. It’s always worth checking your contents insurance policy.

Public liability insurance (arguably the most important element)

If a guest is injured during their stay, you could be held liable. That might be:

• A slip on decking
• A fall on poorly lit steps
• An issue with fixtures or fittings

In a short-term let, the risk increases simply because guests don’t know the property. A robust public liability section isn’t optional; it’s essential.

Loss of rental income

This is where many lower-cost policies fall short. If your property becomes uninhabitable due to:

• Fire
• Flood
• Major damage

You’re not just paying for repairs; you’re losing bookings.

Stronger policies will cover:

• Lost rental income
• Cancelled stays
• In some cases, the cost of relocating guests

For landlords relying on seasonal income, this can be the difference between a setback and a serious financial hit.

Cover during unoccupied periods

Holiday lets naturally have gaps, particularly during the off-season. Those empty periods can increase risks with:

• Undetected leaks
• Burst pipes
• Break-ins

A good policy will account for:

• How long the property is left empty
• Any inspection requirements
• Seasonal usage patterns

Internal cover gaps: Linking to other insurance products

One of the most common issues we see is gaps in coverage between different types of insurance products. For example:

• If you occasionally let your property but mostly use it yourself, you may also need second-home insurance considerations
• If you transition into longer-term letting, elements of landlord insurance become relevant
• If you employ cleaners or maintenance staff, you may need employers’ liability cover

This is why a joined-up approach matters. Treating holiday let insurance in isolation can leave blind spots.

What affects the cost of holiday let insurance?

Pricing isn’t random; it’s based on how your property is used and the risks attached to it.

Location

Properties in coastal or flood-risk areas tend to cost more to insure. High footfall tourist areas can also increase exposure.

Letting frequency

A property listed year-round on Airbnb will usually carry a higher premium than one used occasionally.

Property value and specification

Higher rebuild costs and more expensive contents naturally increase premiums.

Security and management

Regular inspections, alarm systems and clear maintenance routines can reduce risk and sometimes cost. From a broker’s perspective, the aim isn’t just to reduce premiums, but to make sure the cover matches reality.

Alternative accommodation insurance cover 

If something goes wrong and your property can’t be used, alternative accommodation cover steps in. It pays for your guests to stay elsewhere, helping you avoid emergency costs, negative reviews and the stress of finding last-minute solutions.

Legal and regulatory considerations 

Insurance doesn’t sit in a vacuum. If you’re running a holiday let, particularly via Airbnb, you also need to be aware of:

• Local authority regulations on short-term lets
• Mortgage lender conditions (some require specific cover)
• Health and safety responsibilities (fire safety, gas checks, etc.)

If your setup doesn’t meet these requirements, it can impact your ability to claim. In other words, insurance works best when it’s aligned with compliance.

Common mistakes a landlord may make

Over time, certain patterns come up repeatedly:

“It’s covered under my home insurance”

In most cases, it isn’t. At least not fully.

Relying entirely on Airbnb protection

Useful as a backup, but not a substitute.

Underestimating liability risk

This is often the biggest financial exposure.

Not updating policies as usage changes

A property that moves from occasional letting to full-time Airbnb use needs a different level of cover.

From holiday let insurance to holiday home insurance 

The starting point is simple: be honest about how the property is used.

Ask yourself:

• How often is it let?
• Through which platforms?
• What’s the realistic worst-case scenario?

From there, it’s about structuring a policy that protects against those risks, not just ticking boxes. This is where a specialist insurance broker that understands the market, such as Greenfield Insurance, is a valuable business asset for landlords.

Final word

Holiday lets sit in that grey area between personal use and commercial activity. That’s exactly how insurers treat them, and it’s why holiday let insurance exists as a specialist product.

If you’re using platforms like Airbnb, the risks are slightly different again: higher turnover, higher expectations, and often less control over who’s staying.

The question isn’t whether you need cover. It’s whether your current policy genuinely reflects how your property operates today. Get in touch with a member of the Greenfield Insurance team to see how our many years of experience within the holiday let insurance market can help safeguard your property or properties.