Standard landlord insurance won't cover your short-term rental. Discover the key differences between landlord and holiday let policies before you're caught out.
If you own a property and rent it out, you need specialist insurance. But "specialist insurance" is not a single product — and one of the most common mistakes made by new holiday let owners is taking out a standard landlord insurance policy and assuming it covers their short-term rental.
It almost certainly does not. The distinction matters enormously, and getting it wrong can leave you with a voided policy, a rejected claim, and potentially hundreds of thousands of pounds in exposure.
This guide explains clearly how landlord insurance and holiday let insurance differ, what each type covers, and how to make sure your property is correctly insured.
Disclaimer: This article is for informational purposes only and does not constitute professional financial, legal, or tax advice. Consult a qualified professional for your specific circumstances.
The single biggest distinction between landlord insurance and holiday let insurance is the type of occupancy each policy is designed for.
Landlord insurance is designed for properties let under assured shorthold tenancy (AST) agreements, the standard residential tenancy arrangement in England and Wales (or private residential tenancy agreements in Scotland). These are long-term arrangements, typically six or twelve months minimum, where the same tenant occupies the property continuously.
Holiday let insurance is designed for properties let on short-term licences to multiple different guests throughout the year — the Airbnb model, OTA bookings, and direct holiday bookings. Occupants stay for days or weeks, not months.
This distinction affects virtually every aspect of risk and therefore virtually every aspect of cover.
From an insurer's perspective, a landlord property and a holiday let carry very different risk profiles.
A landlord's property has one set of occupants for an extended period. The landlord knows who they are, has references and a tenancy agreement, and the tenant has a long-term interest in looking after the property.
A holiday let has many different occupants, often unknown to the owner beyond a name and an email address. Each changeover introduces new risk. A family with children, a group of hens on a weekend break, a couple celebrating an anniversary — each brings different behaviour and different risks.
A tenanted property is typically continuously occupied. A holiday let may be vacant for weeks at a time — particularly in winter, or between bookings. Unoccupied properties carry elevated risks: they are more vulnerable to burst pipes, undetected water ingress, and opportunistic break-ins.
Landlord policies generally assume continuous occupancy. Holiday let policies are designed to accommodate regular vacancies.
A residential tenancy normally involves the tenant bringing their own furniture and appliances. Many landlord properties are let unfurnished or part-furnished.
Holiday lets are invariably fully furnished and fully equipped — and those contents are used by multiple different guests throughout the year. The risk of accidental damage to a well-furnished property is significantly higher than for a residential tenancy.
A holiday let is a commercial activity in a way that a residential tenancy is not. The owner is running a hospitality business. This changes the legal and insurance landscape fundamentally.
A standard landlord insurance policy typically includes:
Some landlord policies also cover:
Landlord insurance policies typically contain the following terms that make them unsuitable for holiday lets:
Holiday let insurance is specifically engineered for the short-term rental model. A comprehensive holiday let policy should include:
Buildings and contents cover broadly similar to landlord insurance, but with important modifications:
Holiday let public liability is calibrated for a property receiving large numbers of paying guests. It recognises the hospitality context and the heightened duty of care the law places on commercial operators.
Standard limits are £1 million to £5 million. Given the potential scale of personal injury claims, choosing the highest limit available is advisable.
This is the holiday let equivalent of loss of rent cover. If the property is damaged and becomes unfit for guests, the policy reimburses you for the bookings you are unable to fulfil — at the rates you actually charge.
This is particularly important for hosts with high-season bookings, where a week's revenue may be substantial.
If you directly employ cleaners, gardeners, or maintenance staff, employers' liability cover is a legal requirement. Holiday let policies are more likely to include or offer this as an add-on than standard landlord policies.
Some property owners use their home as both a primary residence and a holiday let — renting it out for periods while they are away, or letting a separate annexe. This creates a complex insurance position.
In this situation:
Similarly, some owners transition properties from residential tenancies to holiday lets, or vice versa. During any such transition, make sure your cover is appropriate for the actual use of the property at any given time.
The consequences of holding the wrong type of insurance can be severe:
| Feature | Landlord Insurance | Holiday Let Insurance |
|---|---|---|
| Designed for | AST tenancies | Short-term/holiday lets |
| Vacancy allowance | Usually 30–60 days | Flexible — built for vacancies |
| Guest turnover | Not designed for it | Core use case |
| Public liability | Landlord-tenant focus | Hospitality/commercial focus |
| Malicious damage by occupants | Sometimes included | Usually included |
| Loss of income | Loss of rent | Loss of letting income |
| Employers' liability | Rarely included | Often available |
| Contents use | Owner-provided to tenant | Used by multiple guests |
When shopping for holiday let insurance, look for specialist providers rather than general insurers. Companies such as Schofields Insurance, Intasure, Saga, and Towergate have dedicated holiday let products with the right underwriting assumptions.
Key questions to ask any insurer:
Get at least three quotes and compare not just the premium but the actual terms and exclusions. A cheaper policy with a restrictive vacancy clause or low liability limit may cost you far more in the event of a claim.
Having the right insurance is one pillar of a professionally run holiday let. LetPilot helps you manage the rest — from bookings and owner statements to guest communications and property task tracking, all in one place. A well-organised operation reduces risk and gives you the records you need if you ever have to make an insurance claim. Try LetPilot free at letpilot.co — no credit card required.