Do I Need Holiday Home Insurance?

When you own a holiday home, you’re buying into a piece of a destination you love. So, whether you’re staying there yourself or renting it out to others, holiday homes come with their own set of unique responsibilities and risks.

Unlike a primary residence, holiday homes are often left unoccupied for long periods of time, out of season or in times of low interest for example. This means that the associated risks of loss or damage to property are larger than with standard homes, which in turn affects insurance.

So, do you need holiday home insurance?

In this helpful guide, we’ll break down why you should invest in the premium for holiday home insurance and deep dive  into why it’s so different from standard home cover.

What is holiday home insurance?

Holiday home insurance is an insurance policy that can provide extra protection for properties that serve as holiday spots for short-term rent. Unlike standard home insurance, this cover is designed to address the unique risks that come when a property is left unoccupied for long periods of time such as off seasons.

It aims to protect the property with insurance cover from theft, vandalism or damage all year round, whether occupied or not.

Why home insurance may not cover your holiday home

There are various  reasons why standard home insurance policies may not be suitable for holiday homes.

• Standard policies have limits to the amount of time a property can be left unoccupied — sometimes as short as 30 consecutive days.
• Most policies do not cover properties that are let out to paying guests, meaning that any damage or accidents involving guests might be excluded from the cover.
• Any damage caused by guests under the cover of regular home insurance could be excluded by insurers, which wouldn’t be the case with the correct holiday home insurance.

What does holiday home insurance cover?

Holiday home insurance covers all sorts of risks, both standard and unique to holiday homes.

Buildings and contents coverage

It protects the structure of your holiday home and items inside, even during periods when the property is unoccupied. However, guests should insure their own valuables as the contents cover only applies to the property owner’s items.

Public liability insurance

This offers financial protection if a guest is accidentally injured or has their property damaged while at your holiday home, covering potential legal defence claims, where the accident is alleged as your responsibility.

Rental activity cover

This provides specific coverage for short-term rentals, including protection against accidental damage caused by guests.

Unoccupied property coverage

This ensures that the property remains covered during times when it’s vacant, such as between rentals or during off-seasons.

Who needs holiday home insurance?

It’s important to know whether you really need holiday home insurance. You don’t want to be paying for a premium you don’t need but you also don’t want to be left open to the risks that come without insurance.

If you’re unsure whether you should invest in holiday home insurance, follow this checklist. If even one of these options applies to you, you should look into our holiday home insurance.

• You rent to short-term guests: If you rent your property out through platforms like Airbnb, you’ll likely need holiday home insurance to cover the additional risks posed by  short-term tenants.
• You own a second home: If you have a second home used primarily for vacations, especially if left unoccupied for long periods, you might benefit from holiday home insurance for protection all year round.
• You have a holiday home for yourself that you occasionally rent out: Even if you only rent out your holiday home to friends or family on occasion, holiday home insurance helps ensure you’re covered in case of damage or accidents.

Holiday home insurance is ideal for owners who want peace of mind, knowing their property is secure when they’re not around or if it’s being rented out.

Key benefits of having holiday home insurance

There are all sorts of benefits that holiday home insurance gives to owners like you in the UK:

• Damage and theft protection
• Public liability protection
• Short-term rental protection
• Peace of mind

These all help to give you a better and safer experience as a holiday home owner, protecting your finances, your property and possessions.

How to choose the right holiday home insurance policy

Choosing the right holiday home insurance will always depend on how you and your property operate across the year. However, no matter how you run your property, the same needs and risks can pop up. To help with your choice, you may want to:

Determine your rental intentions

If you plan to rent out the property, choose a policy that offers coverage for rental activities, including liability for guest-related incidents.

Look for unoccupied property coverage

Check any policy you’re looking into for coverage during unoccupied periods and any requirements, such as regular inspections or specific security measures.

Look for the most coverage possible

Choose a policy that covers buildings, contents and public liability to protect against all the risks you can.

Compare insurers

Research different insurers and their policy offerings, looking for reputable providers who specialise in holiday home insurance. Comparing features and pricing can help you find the best fit for your needs.

Holiday home insurance from Towergate

If you’re unsure about your holiday home insurance needs, consulting with a specialist can help clarify which type of coverage best suits your property and lifestyle.

Get a holiday home insurance quote

Our experts at Towergate can get you a quote that will suit your specific holiday home insurance needs. It's quick and easy to get a holiday home insurance quote online or by calling us on 0345 266 8561.

About the author

James Cooper is a respected industry leader with around 10 years' experience in the home and property insurance sector. He works across a broad range of insurance product and policy development and delivery, including product development; customer sales and marketing; and P&L accountability. 

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.