A Quick Guide to Holiday Let Insurance

If you let your property to paying guests, regular home insurance won’t cover you. You need specialist holiday let insurance, which usually combines buildings and contents cover with public liability insurance. If you employ anyone to help, such as a cleaner or gardener, employers’ liability insurance is a legal requirement too.

Insurance can feel like a maze, and getting it wrong can leave you with a big bill when something goes wrong. We’ve been helping Lake District owners let their homes for over 25 years, so we’ve put together this friendly guide to the cover you need, what it typically costs, and the questions owners ask us most.

Quick links

• What insurance do I need for a holiday let?
• Types of cover at a glance
• How much does holiday let insurance cost?
• Am I covered if my holiday let is empty?
• Your holiday let insurance checklist
• Holiday let insurance FAQs
• Get your free Owner Guide

What insurance do I need for a holiday let?

Holiday let insurance isn’t a legal requirement in itself, but going without it leaves you exposed to the cost of damage, accidents and lost bookings. Here’s what a good policy usually includes, and what you’ll want to check.

Buildings insurance

Buildings cover protects the structure of your holiday home: the walls, roof and permanent fixtures such as your kitchen and bathroom.

You’ll need to know what it would cost to rebuild your property. This is often different from what it would sell for, so it’s worth getting right. A chartered surveyor can help you work it out, or speak to your mortgage lender.

Got a mortgage? Your lender may insist on buildings insurance and may have other requirements for a holiday let, so give them a call and check.

Contents insurance

In a holiday let, it’s not just the building you need to protect. Contents cover protects your furniture and belongings against things like fire, theft and damage. You can buy it on its own or as part of a holiday let policy.

Guest damage is where specialist cover really matters. Look for a policy that covers accidental or malicious damage and theft by paying guests, as standard policies often don’t.

Public liability insurance

Public liability covers you if a guest or visitor is injured at your property and makes a claim against you. It’s essential for any holiday let, and at Lakelovers we ask all our owners to have at least £2 million of public liability cover.

Many Lake District homes have plenty of character, which can mean steep staircases, low beams or slate floors that get slippery when wet. If your property has features like these, or a hot tub or pool, check the small print to make sure your level of cover is right.

Employers’ liability insurance

If you employ anyone to help look after your holiday let, even just one cleaner, gardener or maintenance person, employers’ liability insurance is a legal requirement. According to GOV.UK, you must be covered for at least £5 million, and you can be fined £2,500 for every day you’re not properly insured. There are some exemptions, for example if you only employ close family members.

Loss of rent (loss of income)

If a fire, flood or burst pipe leaves your property unusable for a while, you may have to cancel bookings. Loss of rent cover helps make up the income you’d lose. If you rely on your letting income, it’s well worth considering.

Types of holiday let cover at a glance

How much does holiday let insurance cost?

The cost depends on the cover you choose and your property. As we explain in our guide to the costs of running a holiday let, these are typical starting points:

What affects the price?

• The cover you choose and your level of public liability
• Your property’s size and type, and what it would cost to rebuild
• The value of your contents
• Location, including flood or subsidence risk. You can check your long-term flood risk on GOV.UK
• Security, such as locks and alarms
• Extra features, such as a hot tub or pool

To get cover that’s tailored to your holiday home, Lakelovers and the Sykes family of brands have partnered with Pikl Insurance*, specialists in holiday let insurance.

Am I covered if my holiday let is empty?

Your holiday let is most at risk when it’s empty for long stretches. In a Lake District winter, a leak or burst pipe can go unnoticed for days in an empty property.

Many policies have limits on how long a property can be unoccupied before cover is reduced or conditions apply, often around 30 days. Check your policy for:

• How many days in a row the property can be empty
• Any conditions, such as regular inspections or keeping the heating on a low setting
• Whether the water needs to be turned off and drained

If you’re planning a quiet spell over winter, let your insurer know in advance.

Your holiday let insurance checklist

Before you buy or renew, run through these questions:

• Is the policy designed for holiday letting, not standard home or buy-to-let cover?
• Is your buildings cover based on the rebuild cost, not the market value?
• Do you have at least £2 million public liability (the Lakelovers minimum)?
• Do you need employers’ liability because you employ a cleaner, gardener or maintenance person?
• Does the contents cover include accidental and malicious damage by guests?
• Is your hot tub or pool covered under public liability?
• What are the rules if the property is empty?
• Would loss of rent cover protect your income?
• Does the policy meet your mortgage lender’s requirements?
• Does it cover every way you take bookings?

Holiday let insurance FAQs

What insurance do you need for a holiday let?

Most owners need specialist holiday let insurance covering buildings and contents, plus public liability insurance. If you employ anyone, employers’ liability insurance is a legal requirement. Loss of rent cover is optional but useful if you rely on the income. Lakelovers owners need at least £2 million of public liability cover.

Am I covered if my holiday let is empty for a while?

It depends on your policy. Many insurers limit how long a property can be unoccupied, often around 30 days, before cover is reduced or extra conditions apply. Check your policy and tell your insurer about any long empty periods.

Do I need extra insurance for a hot tub?

Check that your liability cover includes hot tubs and pools, as some policies don’t. You may need to pay extra to include this cover.

Am I covered if a guest damages my property?

Only if your policy includes it. Standard home insurance often won’t cover damage by paying guests, so look for a specialist holiday let policy that includes accidental and malicious damage, and theft, by guests.

Do I need holiday let insurance if I take bookings through Airbnb or direct?

Yes. However you take bookings, through an agency, a platform like Airbnb or direct with guests, you’re letting your property to paying guests, so you still need the right cover. Tell your insurer how you take bookings and check the policy covers all of them. Don’t rely on a booking platform’s host protection in place of your own insurance.

Is holiday let insurance a legal requirement?

Holiday let insurance itself isn’t a legal requirement, but employers’ liability is if you employ staff. Your mortgage lender may also insist on certain cover, and GOV.UK guidance advises holiday let owners to have dedicated holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting.

Keep reading

Insurance is just one part of running a successful holiday let. These guides will help with the rest:

• UK holiday let rules and regulations, including fire, gas and electrical safety
• The costs of running a holiday let
• Holiday let tax guide 2026
• Running a holiday let business in the Lake District

Get your free Owner Guide

Whether you’re just starting your holiday letting journey or ready to take bookings, our friendly local team is here to help. Request your free Owner Guide and we’ll talk you through everything, from insurance to what your Lake District home could earn.

Thinking about switching agents or listing your property for the first time? Call our local Lakes team on 015394 88855 or complete the form below to request your FREE Owner Guide.

You can also email newowners@lakelovers.co.uk or visit our Let Your Cottage page.

This guide is for general information only and isn’t financial or legal advice. Insurance policies vary, so always read the terms and conditions of any policy before you buy. As a holiday let owner, you’re responsible for having suitable insurance in place.

*Sykes Cottages Ltd is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346 who are authorised and regulated by the Financial Conduct Authority firm number 773457. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.