Holiday lets: Why it’s vital to have the right insurance in place

The number of holiday homes available in the UK has soared in recent years. Analysis of council figures by the BBC showed that in three years to 2022, there was a 40% increase in properties being let out on a short-term ‘holiday’ basis, commonly known as ‘holiday lets.’

Properties, often in rural locations, with plenty of space and outbuildings, are increasingly being renovated to cater for holiday lets, enabling homeowners to generate additional income via their homes.

Scarborough, North Devon, the Cotswolds, the Isle of Wight, and Norfolk, have seen particular rises in demand for holiday lets in recent years. The rising demand for this type of accommodation is owed, in part, to the growing ‘staycation’ trend, where holidaymakers opt to stay on UK soil rather than travelling overseas. Brexit and the Covid-19 pandemic have both played a role in people choosing to holiday at home rather than abroad.

As we approach the summer months, holiday lets are being snapped up, particularly in the most desirable areas.

Owning and managing a holiday home is much more demanding than merely receiving a passive income. Damages to property, loud guests, and miscommunication, are some of the most common challenges property let ‘hosts’ can run into.

For anyone who lets a property on a short-term accommodation basis, it is vital that they have the right insurance in place to ensure themselves, their family, property, possessions, and their guests are covered in case anything goes wrong.

As allowing paying guests to use a property for holiday purposes comes with additional risks, the policyholder will need to have an alternative bespoke insurance solution in place.

Once a policyholder decides to use their home as a holiday let, the standard household insurance market will no longer be sufficient.

This is where Nelson can assist. We can provide tailored insurance products, such as the policyholder having a main home, plus an attached/detached self-contained annex, which is used for holiday letting by paying guests. Or the policyholder allows a bedroom in the main home to be used for holiday letting purposes (usually on a bed and breakfast basis). Another example is a policyholder who owns a separate home, which is used for holiday letting by paying guests when they are not using it.

Whatever the unique requirements are, Nelson can provide the right cover for the growing holiday let market in time for the busy summer season. Get in touch with our friendly team today to find out more about our holiday let products.