Check out your holiday let insurance before your guests check-in

Self-catering holiday lets are experiencing an upsurge in popularity as people turn to booking their customised holidays direct with holiday let owners. Also, those with empty holiday homes are realising the income potential that holiday letting can generate, contributing to mortgage repayments and maintenance costs.

However, many holiday let owners are leaving themselves exposed by not having adequate holiday letting insurance and underestimating the unforeseen that could destroy both their letting season and guests holidays.

So before your guests arrive at your holiday cottage or villa, ensure your holiday let insurance is protecting you for the following...

Alternatively, insure your holiday let

Your insurance could be invalid if your holiday home is commercially let

This might seem obvious, but check that your insurance company is aware that your home is a commercial holiday let and not just used by your family and friends. Some insurers will limit, alter or invalidate cover in some circumstances when the property is used for letting.

This could lead to expensive consequences should something go wrong and you discover you’re uninsured.

Holiday let public liability insurance

Letting season is in full swing and unfortunately accidents happen. If they do, you don’t want to be held legally (and financially) responsible for any injury to third parties. Public liability insurance for holiday lets is essential, especially with the current trend toward litigation. It enables you to safeguard yourself from any legal hassles that are associated with renting out your property.

For instance, if a holidaymaker gets injured because of faulty wiring in your property, or slips in your cottage, they can take you to court and sue - leaving you to face a legal battle and the prospect of compensating for injury and loss of earnings.

Even if you just let friends use your holiday home without charge, they can also sue you for damages if they have an accident. Get protected.

Check that your public liability insurance for holiday lets covers:

• a minimum indemnity limit of between £3 to £5 million
• covers liability claims arising from an accident involving your swimming pool, for example slip and trips or cuts from broken tiles
• if you employ casual labour in the process of running your holiday let, you will need employers liability insurance cover to protect you against legal action from injured domestic employees - such as caretakers or changeover staff. Again, minimum indemnity limit of between £3 to £5 million is recommended

Accidental damage insurance for holiday lets

When holiday letting, it is likely that your property will have an array of equipment that is likely, by the law of averages, to be damaged by a constant stream of visiting guests.

Comprehensive holiday let contents insurance that covers accidental damage (including malicious damage) by holidaymakers is essential to protect you for incidents - like a damaged TV, cigarette burns on the sofa or wine stains on the carpet.

Check that your insurance extends to cover damage by guests when holiday letting, as some policies only cover damage by family members or friends. This can take the worry out of letting strangers into your holiday rental who might not be as careful as you.

Note: Although it is recommended that holiday rental owners take a refundable damage deposit from guests, you still need insurance should the damage far exceed the deposit taken - a fire for example.

What happens when disaster strikes at your holiday rental?

Dread to think something serious happens during the holiday letting season which results in your property being uninhabitable, a flood or fire for example. If the worst happens you'll need to have your self catering insurance fix things as soon as possible.

Provision of alternative accommodation
If your holiday let is occupied you will need to put you, your family or rental clients in alternative accommodation, being a holiday rental or hotel. Your insurance should cover these expenses.

Emergency travel expenses
Does your insurance cover the cost of emergency travel expenses? Check it does because you'll probably need to be onsite to get things fixed and oversee repairs following loss or damage.

Loss of rental income
If your holiday home becomes uninhabitable, all the rental income from your advanced bookings can be lost almost overnight. Check your policy covers you for loss of rental income so you don’t loose out. This cover is essential during the peak summer months when owners rely on income to contribute to mortgage repayments.

Check that the maximum figure that you can claim under the three areas discussed above is sufficient.

Theft and break-ins

Unfortunately break-ins are common in summer as holidaymakers offer prime pickings after arriving with cash, cards and small valuables. Check if your holiday lettings insurance covers theft by non-forcible entry as keys might get into the wrong hands or a window might get left open.

Also, check that your expensive garden furniture is covered for theft whilst it’s left outside.

Note: Remind holidaymakers in your booking contract that it is their responsibility to take our travel insurance to cover theft of their personal possessions.

Is your insurance null and void if security measures are not utilised?

Does your insurer insist specific security measures are put in place when your home is left empty, such as locking shutters, even for a short period? Is your insurance null and void if these security measures are not utilised?

This can be a problem as getting guests to lock the shutters every time they go out (to the shops, beach, pool area etc.) would be difficult to police and unreasonable. Don’t be left to foot the bill. Check your security obligations with your insurance company

Protect your holiday let

Before your holidaymakers check-in, check out the advice above to ensure your holiday letting insurance protects you and your guests should the worst happen.

Our holiday let insurance is designed for holiday home owners who commercially let their second homes in the UK and abroad. Our holiday lettings insurance offers extensive protection to safeguard against unforeseen incidents. Get a quote

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