Holiday home insurance

Looking at renting out your holiday home?

What do you need to consider in your insurance?

With the increase of staycations set to continue into 2022, we look at what you need to consider when renting out your holiday home.

Being able to rent out your holiday home when you are not using it has its perks – it can help you to cover any mortgage you have, make extra cash and benefit from tax breaks.

Over the past two years, staycations, also known as domestic or local tourism, have risen hugely in the population. According to holidaycottages.co.uk 4 in 5 Britons (84%) planned a 2021 staycation and The Mirror suggests that inquiries about breaks in Britain for 2022 are up by 74%.

Holiday lets are not normally covered by standard home insurance due to extra risks that are associated with them. There is specialist holiday homes or holiday let insurance but always check the policy carefully to ensure it covers you for what you need.

Here are three things you need to consider when renting out your holiday home.

Property damage risk mitigation

  • There are a number of ways that you can help to prevent any fire, contents or building damage. Consider adding in restrictions to the number of guests allowed, if you are happy to have dogs and where they should sleep, whether smoking is acceptable in the house and if BBQ’s can be used in the garden and where to place them.
  • An escape of water can be triggered by faulty workmanship, leaking appliances and burst pipes. Have a guest welcome pack available with emergency contact numbers for recommended suppliers. Make sure they know where the stopcock is. Make sure that you regularly check your property for damp patches or signs of leaks, anything missed or ignored could lead to an insurance claim and the house may not be used for many months.

Theft or vandalism

  • Install suitable cameras that you can access remotely to check in and see what is going on. Make certain that any intruder alarm codes are shared with guests and that they are reminded to turn them on when they leave the property.
  • Use a Key Safe so that if any keys are to be left on the property they are securely hidden and not easily accessed.
  • Don’t keep any sentimental or valuable or precious items in the property, especially if it will be left empty for a period of time.

Guest liability

  • You will need public liability for the health and safety of your guests. Make certain that any obstacles or potential slips or trips are made safe. You could ask a Health and Safety expert to come around and give you any potential issues to sort out.

If you are considering letting out your holiday home, we can help you to work out the best policy for your holiday let that provides the cover you need, give us a call on 01905 21681.