Holiday let insurance compared to standard home cover
Last Updated on February 16, 2026 by admin
Owning a holiday let can be a rewarding investment, whether it is a coastal cottage, countryside retreat, or second home used for short-term rentals. However, many owners underestimate the importance of having the correct insurance in place. Holiday let insurance is essentially different from standard home insurance, and failing to arrange appropriate cover can leave property owners exposed to significant financial risk.
Why standard Home Insurance isn’t enough
A common misconception is that a standard home insurance policy will adequately protect a holiday let. Most standard policies are intended for owner-occupied homes and clearly exclude commercial use or short-term rentals. Once a property is let to paying guests, it is considered a business activity, even if it is only rented out for part of the year.
Holiday let insurance is specifically structured to cover the unique risks associated with short-term occupancy, frequent guest turnover, and periods when the property may be unoccupied. Without specialist cover, claims related to guest damage, liability, or loss of income could be declined.
What is Holiday Let Insurance?
Holiday Let Insurance, sometimes referred to as holiday cottage insurance, is a specialist policy designed for properties used as short-term, self-catering accommodation. It typically combines buildings and contents cover with additional protections that reflect how the property is used.
For owners of a second home that is not their main residence, secondary self-catering holiday home insurance ensures the property is protected whether it is occupied by guests, empty between bookings, or used occasionally by the owner.
Key differences: Holiday Let vs Standard Home Insurance
Understanding the differences between holiday let insurance and standard Home Insurance is essential:
- Public Liability cover: Holiday let insurance includes liability protection in case a guest is injured or their property is damaged while staying at the home.
- Guest-related damage: Cover typically extends to accidental damage caused by paying guests, which is often excluded under standard policies.
- Loss of rental income: If the property becomes uninhabitable due to an insured event, holiday let insurance can compensate for lost bookings.
- Unoccupied periods: Holiday lets may be empty for weeks at a time; specialist policies reflect this risk more accurately.
- Employer’s Liability: If you employ cleaners, gardeners, or maintenance staff, this cover may be required by law.
These features highlight why standard home insurance is rarely sufficient for holiday lets.
Buildings and contents cover
Holiday let insurance provides buildings cover for the structure of the property, including walls, roofs, and permanent fixtures. Contents cover protects furniture, appliances, soft furnishings, and items provided for guest use. Given the higher wear and tear associated with short-term lets, it is important that sums insured accurately reflect replacement costs.
For furnished properties, holiday cottage insurance is particularly important, as guest use increases the likelihood of accidental damage.
Liability and legal protection
One of the most critical aspects of Holiday Let Insurance is Public Liability cover. Guests, visitors, or contractors could suffer injury on the premises, and claims can be costly. Adequate liability limits offer peace of mind and financial protection.
Some policies also include legal expenses cover, helping with disputes involving guests, neighbours, or regulatory issues.
Seasonal use and flexibility
Many holiday homes are only let during certain times of the year. Secondary self-catering holiday home insurance is designed to be flexible, covering mixed usage where owners may occupy the property themselves outside of the rental season.
It is important to disclose how the property is used, as incorrect information can invalidate cover.
Choosing the right policy
When selecting holiday let insurance, owners should consider:
- How often the property is let
- Maximum guest numbers
- Whether pets are allowed
- Location and exposure to risks such as flooding or coastal weather
- Compliance with safety regulations, including fire and gas safety
Working with a specialist broker ensures policies are tailored correctly and that cover evolves as the property’s use changes.
Final thoughts
Holiday lets come with unique risks that standard home insurance simply does not address. Investing in specialist Holiday Let Insurance or holiday cottage insurance protects not only the property but also rental income and personal liability. For owners of second homes used for short-term rentals, secondary self-catering holiday home insurance is essential to ensure comprehensive protection year-round.
Speak to the experienced team at Boshers, who understand these nuances. You can be confident that a policy bought through us will allow you to protect your investment properly and operate with confidence, knowing your insurance reflects the reality of how your property is used, to protect you and your guests properly.
Call us on 01237 429444 to chat about your situation.
