Compiled by HolidayLetContracts from the sources listed below, checked on 5 November 2026. We sell the templates linked on this page.
Holiday let insurance in the UK: what cover you need and what to ask
As of November 2026, official guidance for self-catering hosts in England says you should have dedicated holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting. In Scotland, a short-term let licence requires valid buildings insurance and public liability insurance for the duration of each let. A home policy written for a home you live in may not cover paying guests, so tell your insurer how you use the property and get the answer in writing.
What the official guidance says
The GOV.UK guidance for letting out a self-catering holiday home in England says you should have dedicated holiday let insurance, public liability cover, and building and contents cover suitable for short-term letting. It also tells you to check the specific rules around holiday let insurance in your local area.
In Scotland, insurance is a mandatory condition of a short-term let licence. The holder must make sure there is valid buildings insurance for the duration of the licence and valid public liability insurance for the duration of each let agreement. The Scottish guidance adds that the buildings insurance must cover the short-term let activity, whether through your own policy, a shared policy such as one for an apartment block, or insurance taken out by the owner.
| Nation | What the official source says | Source |
|---|---|---|
| England | Should have dedicated holiday let insurance, public liability cover, and building and contents cover suitable for short-term letting | GOV.UK self-catering guidance |
| Scotland | Licence condition: valid buildings insurance for the licence period and public liability insurance for each let; buildings cover must cover the short-term let activity | Scottish Government licensing guidance; Licensing Order 2022 |
| Wales | Not covered in the official page checked for this guide. Ask your insurer and local authority. | Not applicable |
Why home insurance may not be enough
An ordinary home policy is written for a home you live in. The official guidance asks for cover suitable for short-term letting, and the Scottish rule says buildings cover must cover the let activity, so the question for any policy is whether the insurer knows paying guests will stay and has agreed to cover that use.
Do not assume. Tell the insurer in plain words how the property is let, how many nights a year and to how many guests, then ask for confirmation in writing. A claim is a poor time to find out that the policy excluded letting.
The types of cover to ask about
Only buildings, contents suitable for short-term letting and public liability are named in the official guidance. The others below are options to raise with an insurer or broker, and what each policy actually includes varies, so read the wording.
| Cover | What to check | Official position |
|---|---|---|
| Buildings | Does it cover the property while it is let to paying guests? | Named in GOV.UK (England) and required in Scotland |
| Contents | Does it cover the furniture, fittings and linen you provide, and is it suitable for short-term letting? | Named in GOV.UK (England) |
| Public liability | Does it cover injury to guests or damage to their belongings, and for what limit? | Named in GOV.UK (England) and required in Scotland |
| Employers' liability | Needed if you employ people, such as a cleaner on your payroll. At least £5 million from an authorised insurer. | Compulsory for employers under GOV.UK rules |
| Loss of income | Does it pay for lost bookings after an insured event, and for how long? | Not in the official guidance; ask your insurer |
| Accidental damage by guests | Is damage caused by guests covered, and what excess applies? | Not in the official guidance; ask your insurer |
Mortgage lenders and landlords
Your mortgage lender, or your landlord if you do not own the property, may have its own rules about holiday letting or about insurance. Read your mortgage or lease terms and ask in writing before you take bookings. The insurer and the lender both need the same accurate description of how the property is used.
In Scotland, where the property is in a block or the owner holds the policy, check whose policy covers the let activity before you apply for your licence.
What it costs
No UK price figure is quoted here because we did not find a current, attributed one from an official source. Premiums depend on the property, its location, how it is let and the cover chosen. Ask several insurers or a broker for quotes on identical cover and compare the excess and limits as well as the premium. Check the firm is authorised on the Financial Conduct Authority register.
Keeping your cover in order
Review your policy at each renewal and whenever you change how the property is let, add a hot tub or take on staff. Keep the schedule, the written confirmation about letting and your risk assessments together.
Insurance works best alongside clear paperwork. A security deposit policy that follows consumer law and house rules guests actually follow reduce disputes, and the fire safety guide covers the written risk assessment.
Get the free Holiday Let Insurance Cover Review Sheet: 17 questions and a signed declaration, emailed to you as a print-ready form.
Free template
Get the print-ready Holiday Let Insurance Cover Review Sheet
A print-ready sheet to record what each policy covers, the questions you put to the insurer, the written answers you received and your renewal date. Free, and yours to keep.
Frequently asked questions
Do I need special insurance for a holiday let?
GOV.UK guidance for England says you should have dedicated holiday let insurance, public liability cover, and building and contents cover suitable for short-term letting. In Scotland a licence requires buildings insurance and public liability insurance.
Does standard home insurance cover holiday guests?
Do not assume it does. Home policies are written for a home you live in, and official guidance asks for cover suitable for short-term letting. Tell the insurer how you let the property and ask for written confirmation that paying guests are covered.
Is public liability insurance compulsory for a holiday let?
In Scotland, valid public liability insurance for each let agreement is a licence condition. In England, GOV.UK says you should have it. It is a sensible baseline everywhere, so confirm the limit with your insurer.
Do I need employers' liability insurance for cleaners?
If you employ people, GOV.UK says you must have employers' liability insurance of at least £5 million from an authorised insurer, and you can be fined £2,500 a day without it. Check with an insurer whether a self-employed cleaner is treated differently.
Does my mortgage lender need to know about holiday letting?
Check. Your mortgage or lease terms may restrict holiday letting or set insurance conditions, so read them and ask your lender or landlord in writing before taking bookings.
Sources
- Letting out a self-catering holiday home in England: rules and regulations, GOV.UK
- Short term lets licensing scheme part 1: getting ready to apply, Scottish Government
- The Licensing of Short Term Lets (Scotland) Order 2022, Schedule 3: mandatory conditions, legislation.gov.uk
- The Licensing of Short Term Lets (Scotland) Order 2022, legislation.gov.uk
- Employers' liability insurance, GOV.UK
- Financial Conduct Authority register, Financial Conduct Authority
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Guest terms, deposit rules and house rules agreed at booking, so a bad weekend is handled by the paperwork.
Hosts who run the let as a business.
These articles are general guidance for UK holiday let owners and hosts, not legal, tax or insurance advice. Holiday let rules differ between England, Scotland, Wales and Northern Ireland, so check the position for your property. Our documents are editable templates to adapt to your own lets.