Holiday home insurance

A clear guide for UK holiday homeowners

Holiday home insurance is a specialist type of cover for properties that are not your main residence. It protects against risks that standard home insurance may not fully cover, such as long periods when the property is empty, short-term guest stays, and higher exposure to weather in coastal or rural locations. If you own a cottage in Cornwall, a lodge in the Highlands, or a seaside flat in Wales, the way your property is used - and when it is empty - has a real impact on risk and price.

In 2025, typical holiday home insurance can cover your buildings, your contents, accidental damage, theft, public liability, and alternative accommodation costs after an insured event. Policies are designed around how often the home is occupied, whether you let it to paying guests, and local risk factors. Premiums vary widely, commonly from around £200 to £700 per year, with higher or lower prices depending on location, property age, security, and your claims history. Across the market, home premiums have generally risen, reflecting higher repair costs and frequent weather-related claims.

Owners choose this cover for financial protection and peace of mind. Insurers paid significant sums for storm and water damage recently, and holiday homes are often in exposed areas that face strong winds, heavy rain, or frozen pipe risks. Holiday let owners also need liability protection if a guest is injured on the property. This guide explains what is typically covered, how claims work, what affects your premium, and the practical steps to buy with confidence. No jargon, no assumptions - just clear, balanced guidance to help you decide what is right for your situation.

Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are.

What is covered and how it works in practice

A typical policy includes buildings insurance to cover the structure, fixtures, and permanent fittings against perils like fire, storm, flood, escape of water, vandalism, and theft. Contents insurance protects furniture, appliances, and valuables kept at the holiday home. Many policies include accidental damage for common mishaps, though you may need to opt in or meet certain conditions. Public liability is vital if you host paying guests, covering legal costs and compensation if someone is injured or their property is damaged at your home.

There are important limitations. Unoccupancy clauses often apply after a set number of days empty. You may need to drain water systems, keep heating at a minimum temperature, or arrange regular inspections during cold months. Theft cover typically requires approved locks and visible signs of forced entry. Guest-related damage may be limited to accidental damage, with deliberate acts excluded. If you let via a platform, you must disclose this and ensure you have the correct commercial or holiday let wording.

Claims are straightforward when the policy and records are in order. Report incidents promptly, take photos, keep receipts, and prevent further damage. For escape of water, turn off the supply and contact the insurer for their repair network. For storm or flood, document damage carefully and keep evidence of maintenance. Settlements can be cash or repair. Rebuild costs are based on your declared sum insured, so keeping valuations accurate helps avoid underinsurance and disputes.

Who benefits most - and when it may not be needed

This insurance suits owners of second homes and holiday lets across the UK, especially properties in coastal, rural, or exposed areas. If you rent to paying guests - whether through a local agent or platforms like Airbnb - you will typically need public liability and specific holiday let wording. Owners of older or listed buildings benefit from specialist cover because rebuild costs and materials can be higher and more complex.

If you rarely use the property, or leave it empty for extended periods, a tailored policy helps manage unoccupancy risk. Likewise, if your holiday home contains valuable contents or technology, contents and accidental damage cover reduce financial exposure. On the other hand, if a property is your main residence and you do not let it to guests, a standard home policy with suitable endorsements may be sufficient. Always check whether your current insurer can accommodate occasional short stays by friends or family without payment. If letting becomes frequent or commercial, you will usually need to switch to a specialist holiday or holiday let policy.

Choosing a level of cover that fits

1. Essential

   • Buildings cover for core perils like fire, storm, flood, escape of water, and theft.
   • Basic contents limit and standard unoccupancy conditions.
   • May exclude accidental damage and guest-related liability unless added.
   • Suits low-risk, newer properties with limited contents and minimal letting.

2. Standard

   • Buildings and contents with higher limits and optional accidental damage.
   • Public liability suitable for short-term holiday lets.
   • Some cover for loss of rent or alternative accommodation after an insured event.
   • Wider unoccupancy allowances when risk controls are met.

3. Enhanced

   • Higher buildings and contents limits, accidental damage included.
   • Public liability with higher limits for busy holiday lets.
   • Loss of rent or business interruption for let periods.
   • Trace and access, emergency assistance, and enhanced storm or flood provisions.

4. Optional add-ons

   • Accidental damage for buildings and contents.
   • Higher liability limits for guest-heavy properties.
   • Loss of keys, pedal cycles, or garden outbuildings.
   • Malicious damage by tenants or guests where available.
   • Home emergency cover and boiler breakdown.
   • Increased unoccupancy window with specific winterisation steps.
   • Gadget or valuables extensions for high-value items.

Use the policy wording to compare unoccupancy rules, security requirements, excesses, and exclusions. If you let out the property, confirm that the policy explicitly covers holiday lets, not just family use. When in doubt, ask the insurer to confirm key conditions in writing.

What it costs and why prices vary

Prices are indicative. Insurers increasingly use local risk data and AI tools to refine quotes based on postcode, construction, and occupancy patterns.

Who can apply and what insurers ask for

Most UK property owners with a second home or holiday let can apply, including individuals, couples, and family trusts. You will be asked about the property address, construction type, roof and window materials, year built, and any flat roof areas. Insurers ask whether the home will be let to paying guests, how often it is occupied, and what security measures are in place. For listed or older buildings, you may need details of renovations and specialist materials.

You will need accurate rebuild and contents values. Many homes are underinsured when sums insured are estimated rather than calculated. A professional rebuild assessment or trusted calculator can help. Insurers may require photos, proof of ownership, and recent valuations for high-value items. Common reasons for decline include significant structural defects, very high flood risk, subsidence history, or undisclosed commercial activities. Being transparent about letting arrangements and unoccupancy helps avoid issues at claim time.

From quote to claim in simple steps

1. Gather property details, rebuild value, contents total, and security information.
2. Get multiple quotes with identical cover limits for a fair comparison.
3. Confirm holiday letting use, occupancy pattern, and any platform listings.
4. Review exclusions, unoccupancy clauses, and winter requirements closely.
5. Choose a cover level and add-ons that match real risks and budget.
6. Buy the policy and set reminders for inspections and maintenance tasks.
7. Keep photos, receipts, and inventories updated throughout the year.
8. If something happens, report quickly, prevent further damage, and document evidence.

Benefits and drawbacks to weigh up

Key checks before you commit

Read the schedule and wording carefully. Pay close attention to the excess you will pay for each type of claim, as escape of water and subsidence may carry higher amounts. Review unoccupancy rules, winter heating or drain-down requirements, and any inspection frequency you must follow. Check whether theft requires forceful entry and what locks are accepted. Confirm your buildings sum insured reflects the full rebuild cost, including professional fees and debris removal, and that contents limits match what is actually kept at the property. Note any waiting periods for specific covers, renewal pricing practices, and documentation you must keep, such as guest logs and maintenance records. Clarity now avoids surprises later.

Alternatives if your needs differ

1. Standard home insurance
   • Suitable for main residences without guest letting. May not cover long unoccupancy.
2. Landlord insurance
   • Designed for longer term tenancies rather than short holiday lets.
3. Unoccupied property insurance
   • Short-term cover for homes empty during sale or renovation.
4. Travel insurance for guests
   • Protects visitors for their own belongings and trip issues, not your building.
5. Home emergency cover
   • A bolt-on or standalone policy for urgent callouts and repairs.

Frequently asked questions

Q: Do I need special insurance to host paying guests? A: Yes. You typically need holiday let wording with public liability cover. Standard second home policies may not cover paid stays. Always disclose how often you let and through which platforms.

Q: Why is the premium higher than my main home? A: Holiday homes face added risks from unoccupancy, guest turnover, and location. Prices often fall between £200 and £700, but can be higher for older buildings or exposed areas.

Q: How can I reduce the cost without cutting essential cover? A: Improve security, maintain the property, set realistic sums insured, and compare quotes. Timing your renewal mid to late year and negotiating can also help reduce costs.

Q: Are storms and floods covered? A: Most policies cover storm and flood, subject to exclusions and excesses. In high-risk areas, terms may be tighter or premiums higher. Check roof, guttering, and drainage conditions are maintained.

Q: What happens if my home is empty in winter? A: You may need to keep heating at a set temperature or drain the system, plus arrange periodic inspections. Not following these rules can affect escape of water claims.

Q: How do insurers calculate the rebuild value? A: They rely on your declared sum insured. Use a reputable calculator or professional assessment to reflect materials, labour, professional fees, and debris removal. Underinsurance can reduce payouts.

Q: Does platform host protection replace insurance? A: Platform protections are not a substitute for proper insurance. They often include limitations, exclusions, and claim thresholds. A dedicated policy is designed for your property and risks.

What to do next

If a specialist policy sounds right, start by listing the real risks your property faces, from weather exposure to guest activity. Compare like-for-like quotes, check unoccupancy conditions, and confirm liability limits. Take your time, ask questions, and only proceed when you are comfortable with the wording and the price.

Important note

This guide is general information, not personal financial advice. Policy terms and prices vary by insurer and your circumstances. Always read the full policy wording and schedule, and confirm key conditions in writing before you buy.