Owning a holiday home in Wales is a fantastic investment, but ensuring it is properly protected is essential. Specialist holiday home insurance provides peace of mind by covering potential risks such as property damage, theft, and liability claims.
Protecting your holiday home and holiday let in the UK requires specialist insurance. Unlike standard home insurance, holiday home insurance addresses the unique risks associated with properties used for personal getaways or short-term rentals. With the UK staycation market remaining strong, understanding your insurance needs is more important than ever. In this guide, we’ll explore everything you need to know about holiday home insurance, from what it covers to how to choose the best policy for your needs.
At Menai Holiday Cottages, we’ve helped hundreds of property owners across North Wales protect and manage their holiday lets. From coastal retreats on Anglesey to countryside cottages in Snowdonia, we understand the unique needs of holiday home insurance and how to make your investment work for you.
Carry on reading for a comprehensive 2025 guide to holiday let insurance and second home insurance in the UK…
What is Holiday Home Insurance?
UK holiday home insurance is a specialised type of property insurance designed for second homes in the UK that are used for personal use or short-term rentals. Unlike standard home insurance, it accounts for the unique risks associated with properties that are unoccupied for extended periods or rented out to guests, it addresses:
- Extended unoccupancy
- Guest-related liability
- Rental income protection
- Weather and environmental risks
Whether you’re renting through Airbnb, with a letting agent like Menai Holiday Cottages, or simply enjoying the property yourself, this tailored protection ensures you’re covered for today’s complex risks.
Why Do You Need Holiday Home Insurance?
Standard home insurance policies often exclude cover when the property is unoccupied or let out. Key reasons to consider a specialist holiday let insurance UK policy:
Unoccupancy Periods
Empty homes are more prone to burglary, vandalism, and issues like leaks or pest infestations going undetected.
Guest Rentals
Letting your property—even occasionally—exposes you to liability claims, accidental damage, or disputes.
Weather-Related Risks
Climate change is increasing the frequency of:
- Storm damage
- Coastal erosion
- Flooding in low-lying areas
Working with a wide variety of owners, from traditional stone cottages to luxury sea-view apartments, Menai Holiday Cottages has seen firsthand how essential tailored insurance is. We’ve supported owners through unexpected events like storm damage, guest accidents, and even insurance disputes—so we know how important it is to get the right cover in place from the start.
Having the right insurance gives you protection, ensures compliance with mortgage lenders, and gives your guests reassurance.
What Does Holiday Home Insurance Cover?
A comprehensive policy typically includes:
1. Buildings Insurance
Covers the physical structure—walls, roof, and fittings—against fire, storm, flood, vandalism, and more.
2. Contents Insurance
Protects your furnishings, appliances, and personal items against theft, accidental damage, or loss.
3. Public Liability Insurance
Covers injury or damage claims from guests staying in your property.
4. Loss of Rental Income
If your property becomes uninhabitable, this reimburses you for lost booking income.
5. Alternative Accommodation
Pays for guest re-housing during insured repairs.
6. Accidental Damage
Includes mishaps like red wine on carpets or broken windows.
7. Employer’s Liability Insurance
Required if you employ cleaners, gardeners, or maintenance staff.
8. Cyber and Smart Tech Protection (New in 2025)
Covers smart locks, guest portals, and connected devices—helpful in modernised holiday lets.
Top Tip: Installing smart security systems and leak detectors could reduce your premiums by up to 20%. Ask your insurer if you qualify for discounts.
How to Choose the Best Holiday Home Insurance Policy
1. Assess Your Risks
Location and usage affect your cover needs. Flood-prone or coastal areas may require specific insurance.
2. Compare Policies
Use comparison websites and brokers to find the best deal for your level of risk.
3. Check Exclusions
Common exclusions include general wear and tear or malicious guest damage.
4. Review Unoccupancy Terms
Insurers often limit how long a property can remain empty before coverage changes—some allow up to 60 days.
5. Look for Optional Add-Ons
Key loss cover, legal expense protection, or emergency repairs may be worthwhile extras.
If you’re unsure where to start, our team at Menai Holiday Cottages can help you assess your property’s risk profile and recommend suitable insurance considerations based on your location and letting activity.
How Much Does Holiday Home Insurance Cost?
The cost of holiday home insurance varies depending on factors such as:
- Location: Properties in high-risk areas (e.g., flood zones) may have higher premiums.
- Property Value: Larger or more luxurious homes cost more to insure.
- Rental Frequency: Regularly rented properties may require enhanced coverage.
- Security Measures: Features like alarms, CCTV, and secure locks can help lower costs.
Typical premiums in 2025 range from £200 to £700 annually, depending on your specific circumstances.
Where to Find the Best Holiday Home Insurance
To find the right policy:
- Use comparison websites like MoneySuperMarket or ComparetheMarket
- Speak with insurance brokers for tailored advice
- Read customer reviews about claims processing
- Consider specialist providers like Pikl, who focus solely on holiday let and second home policies.
In 2025, some insurers now offer AI-powered quote tools to customise your policy based on location, reviews, and occupancy data.
Maintaining Your Holiday Home Insurance
After securing the right insurance for your holiday home, it’s important to maintain your policy:
- Regular Reviews: Periodically review your coverage to ensure it remains adequate, especially after making significant changes to your property.
- Routine Maintenance: Regular maintenance can prevent common issues and reduce the likelihood of claims.
- Keep Records: Maintain detailed records of your property’s condition, maintenance activities, and any incidents to streamline the claims process if needed.
Top Tip: Installing smart security systems and leak detectors could reduce your premiums by up to 20%. Ask your insurer if you qualify for discounts.
Holiday Home Insurance FAQs
Q: Do I need special insurance if I let out my holiday home?
A: Yes. Standard home insurance usually doesn’t cover short-term lets or guest stays. Holiday home insurance includes essential extras like public liability cover and protection for periods of unoccupancy.
Q: Is holiday let insurance more expensive than standard home insurance?
A: It can be, depending on the level of cover, location, and how frequently the property is let. However, many insurers offer competitive rates for well-maintained properties with good security.
Q: What’s the difference between second home insurance and holiday let insurance?
A: Second home insurance typically covers properties used privately, while holiday let insurance is designed for homes rented out to paying guests. If you use your property for both, look for a flexible policy.
Q: Can I get cover for guest damage or cancellations?
A: Yes. Many policies offer accidental damage cover, and some even include or offer optional cancellation cover to protect rental income.
Q: Who can help me find the right insurance for my property?
A: Agencies like Menai Holiday Cottages work closely with trusted providers and can guide you on the right type of insurance based on your property and letting activity.
Final Thoughts on Holiday Home Insurance
Holiday home insurance is a crucial safeguard for property owners, whether you use your home for personal retreats or as a rental investment. By choosing the right coverage, you can protect against unexpected costs, ensuring your holiday home remains a secure and enjoyable asset for years to come.
Take the time to compare policies, assess your specific needs, and invest in comprehensive coverage to provide peace of mind. Need help finding the right holiday home insurance? Start comparing providers today!
Join Menai Holiday Cottages
Based in North Wales, Menai Holiday Cottages has supported a diverse range of property owners—from seaside apartments in Llandudno to remote retreats in Snowdonia. We help maximise your bookings and guide you through the essentials like holiday let insurance, compliance, and guest management.
*Menai Holiday Cottages is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346 who are authorised and regulated by the Financial Conduct Authority firm number 773457. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.
Note: The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time, so please contact our prospective new owner team if you’d like to hear how. Nothing in this article constitutes the giving of financial, tax or legal advice to you; please consult your own professional advisor (accountant, lawyer etc). in this regard. If we have referred within the article to a third-party provider of unregulated holiday let mortgages, this is due to the fact that such mortgages aren’t currently regulated by the FCA.As a helpful reminder, your home may be repossessed if you do not keep up repayments on a mortgage, so again anything you decide to do in this particular area this is one on which you should take your own professional advice on too, as we aren’t providing and can’t provide you with this.
As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
