Holiday home insurance

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

If you own a second home for occasional use (such as for holidays), a standard home insurance policy won't cut it. 

As you won't be occupying the property full-time, the risks involved in it will be different:

• If a leak occurs or an electric fault sparks up, it may take longer to be discovered, and therefore, the damage caused could be significantly higher.
• Empty houses are easier to break into.
• Guests may cause damage to your property or injure themselves.

You'll need to take out specialised cover to ensure the home is fully protected. 

• Find out more: Best home insurance 2025.

Types of holiday home insurance

Holiday home insurance 

Like standard home insurance, holiday home cover levels vary by provider. But a good policy should cover you against events such as fire, storm, flood, escape of water, theft and malicious damage. Some will also cover accidental damage caused by guests. 

Unoccupied home insurance

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, you may need to get unoccupied property insurance to protect it. 

As with all other forms of cover, the levels of protection 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.    

What does insurance for holiday homes cover? 

Similar to your home insurance, your holiday home cover will protect your home with standard and optional elements of cover. These can include: 

• Standard buildings insurance and contents insurance Cover for the building and your possessions inside it.
• Accidental damage cover Unanticipated damage caused by you or your guests.
• Emergency travel If you need to travel to your holiday home to fix a leaky dishwasher or burst pipe. 
• Loss of income Where 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.

It may not cover stag or hen parties; if the let is for an extended period of time, or if you have more than a certain number of bedrooms. 

If you are planning to use your holiday home for these reasons, check with the insurance provider before taking out a policy. 

• Find out more: Is flooding covered by my home insurance?

Do I need special insurance for a holiday let?

You might rent out a holiday home to seasonal guests, or perhaps let out spare rooms in your own home via a hosting website such as Airbnb.

The first important point to be aware of is that if you're using part of a property for commercial gain or business purposes, it's crucial that the insurer of that property knows, whether they're a 'normal' insurer or are 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.

As with a situation where you're insuring a second home, you'll likely need some specialised cover to be fully protected should something go wrong with the let.  

Holiday let or host insurance 

Many home insurance policies offer host insurance as a standard add-on, which will increase your monthly premiums but will save you in the long run if a guest damages themselves or your home.

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

Airbnb cover

Airbnb does offer its own protection in the form of 'Aircover' when you apply to be a host.

This provides hosts with reimbursement of costs should guests damage the property and liability insurance should a guest hurt themselves. 

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,and you may still need to buy supplementary insurance. 

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

Do UK insurers cover overseas holiday homes?

Yes, UK insurers commonly offer coverage for holiday homes abroad, including buildings and contents insurance similar to UK residential properties. 

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.

Coverage may vary depending on factors such as the risk of natural disasters in the area. However, UK insurers aim to cater to 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 take several factors into consideration, such as size, location, how often it's occupied, and the value of the property and contents within it. 

When considering how much you want to charge for your holiday rental to guests, it's important to take into account running costs, a mortgage if you have one and your insurance premiums.

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

It's not just insurance that you need to think about when renting out a room or entire property:

• Your landlor: 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, it's possible there are rules on renting out your property.
• Tax Income tax will apply to any money you make, though 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're also resident in the property.