Airbnb Insurance UK: Essential Coverage for You (2026)
Disclaimer: This article is for informational purposes only and does not constitute financial or insurance advice. Please consult with qualified insurance experts or a broker to find a policy that meets your specific needs.
Renting your holiday home or primary residence on Airbnb in the UK is a great way to earn extra income. But this form of short-term Airbnb holiday letting exposes your home to unique risks that standard homeowner's insurance will not cover.
Many hosts are surprised to learn that their standard home policy is voided the moment a paying guest steps inside. This guide addresses the most frequently asked questions about specialist Airbnb Host Insurance in the UK and outlines what you need to be fully protected.
Key Takeaways for UK Hosts
- Airbnb's AirCover (which replaced the old Host Guarantee) is not a regulated insurance policy and has many exclusions.
- Your standard homeowner's insurance is likely void the moment you start renting out your property, as this is a business activity.
- Standard landlords' insurance for Longer-term AST lets does not cover the high turnover of short-term holiday accommodation.
- You need Specialist insurance (a 'short-term let' policy) to be fully covered for public liability, guest-related property damage, and loss of rent.
- You must check with your mortgage provider before hosting, as it may violate your loan terms.
- You must comply with local rules, such as the 90-day rule in London or the Scottish government's licensing scheme.
- The cost of your specialist policy is a tax-deductible expense, so inform the Inland Revenue of tax relief.
What is AirCover for UK Hosts (And Is It Enough)?
Airbnb offers its hosts a protection program called AirCover for Hosts. This automatically applies and replaces older programs, such as the Host Guarantee and Host Protection Policy. It includes:
- Guest identity verification
- Reservation screening
- $3m Host Damage Protection
- $1m Host Liability Insurance
- A 24-hour safety line
When a guest-related claim occurs, you must typically try to resolve it with the guest first via the dispute resolution centre in your host account. If that fails, you can file a reimbursement request, which may require submitting an intake form with evidence.
However, AirCover has significant limitations:
- It Is Not an Insurance Policy: AirCover is a "protection program," not a regulated insurance contract. You cannot appeal to the UK's Financial Ombudsman Service if you disagree with a claim decision.
- It Has Key Exclusions: It does not cover gradual wear and tear, theft of cash, or damage from natural disasters (like UK storms and floods). It also may not cover damage to common areas in a block of flats, only your own unit.
- You Cannot Opt Out: Although the liability portion is provided to all hosts, it serves as the primary policy. This can complicate claims with your own, more comprehensive specialist insurance.
Airbnb's own website states that AirCover is not a substitute for personal insurance. Significant protection gaps could expose you to serious financial risk.
What about Experiences & Services Liability Insurance?
If you host an "Experience" (like a walking tour or cooking class), Airbnb provides a separate Experiences & Services Liability Insurance policy. This ELI Program covers you if you are found legally responsible for bodily injury to a guest. This is crucial if your Experience involves things like navigating public transport or even giving café and restaurant recommendations that lead to illness.
The "Insurance Gap": Why Your Home Policy is Void
This is the most critical risk. The policy for your primary residence does not allow hosting paying guests.
The reason is that a standard homeowner's insurance policy contains a "business activity exclusion clause." Insurers see a fundamental difference in risk:
- Standard Home Policy: Covers your domestic life, not a commercial serviced accommodation business.
- Standard Landlords Insurance: This policy is also incorrect. It is designed for Longer-term AST lets (6-12 month contracts), not the high turnover and specific risks of a holiday home.
If a guest starts a fire or has an accident, your insurer will likely invalidate your entire policy, leaving you with no cover. This applies whether you let your whole home or just a room.
Key Features of a Specialist UK Host Insurance Policy
To fill the 'insurance gap,' you need a Specialist insurance policy, often called Short-Term Let Insurance or Holiday Let Insurance. This is a business policy that replaces your home insurance and is designed to cover the risks associated with hosting.
Here is what a comprehensive policy should include.
1. Buildings and Contents Insurance
This is the core of your policy.
- Buildings Insurance: Covers the physical structure of your property (walls, roof, kitchen) against property damage from events like fire, flood, or storms.
- Contents Insurance: Covers your belongings inside. This must include damage caused by guests, theft or attempted theft (even if it occurs without forced entry, which standard policies typically exclude), and malicious damage. It covers everything from your sofas to your electric appliances. It will not cover gradual wear and tear.
2. Public Liability (Liability Cover)
This is the most critical protection. It provides personal liability protection in the event a guest suffers bodily injury or property damage and holds you responsible.
- Real-world example: A guest suffers a serious injury by slipping on a wet tile and sues you. This liability cover pays for your legal defence and any compensation awarded, typically up to £5 million.
3. Loss of Rent (Business Interruption)
This is vital for your income. Also known as loss of rental income or business interruption insurance, it covers your lost earnings if your property becomes uninhabitable due to a covered event.
- Real-world example: A pipe bursts, flooding your living room. You have to cancel three months of bookings. This policy pays you for the loss of booking income you would have earned, helping you continue making mortgage payments.
4. Home Emergency & Alternative Accommodation
- Home Emergency: A valuable add-on that provides a 24/7 call-out service for failures of your central heating, plumbing, or electrics. Note this usually excludes gradual mechanical faults.
- Alternative Accommodation Cover: If your property becomes uninhabitable, this coverage can help with the cost of rehousing a guest or yourself (if it's your primary residence).
5. Legal Expenses (Legal Cover)
This legal cover add-on pays for legal fees in a range of disputes, including property recovery (if a guest refuses to leave), tax investigations by the Inland Revenue, and employment disputes.
6. Employers' Liability (ELI Program)
This is a legal requirement in the UK for anyone who employs anyone, including part-time cleaners. It covers you if they are injured while working at your property.
High-Risk Features & Property Types You Must Declare
Failing to declare "high-risk" features is one of the fastest ways to invalidate your policy.
- Hot Tubs and Swimming Pools: A significant public liability risk.
- Wood-Burning Stoves & Open Fires: A Significant Fire Risk.
- Allowing Pets: Requires a specific add-on for pet-related damage.
- Property Type: You must be clear if it's a standard house, a flat with common areas, or a static caravan, as these all have different risk profiles.
Legal, Mortgage, and Tax Considerations
Insurance is only one part of the puzzle. You must also consider:
- Your Mortgage Provider: You must get permission from your mortgage provider. Hosting without permission can be a breach of your loan terms, and they may demand repayment of your entire mortgage.
- Local Rules & Planning Permission:
- The 90-Day Rule: In Greater London, you cannot let your entire home for more than 90 nights per calendar year without planning permission. Your occupancy strategy must take this into account.
- The Scottish Government: Hosts in Scotland must now be part of an administrative registry and obtain a licence, which requires proof of adequate liability cover and safety certificates.
- Other local rules apply in cities like Manchester and Edinburgh.
- Rent-to-Rent Contracts: If you rent a property and then sublet it on Airbnb (a rent-to-rent model), you need the landlord's permission and a specialist policy that covers subletting.
- Tax & Inland Revenue: Your hosting income is taxable. You must declare it to the Inland Revenue. The good news is that your insurance policy, cleaning fees, and other expenses are eligible for tax relief.
Other Insurance: Host vs. Guest
It's essential to know the difference:
- Host Insurance (This Article): Protects you (the host) and your property.
- Guest's Travel Insurance: Protects the guest from their own risks, such as trip cancellations, lost baggage, or medical care. A guest's travel insurance (which may be provided by companies like Europ Assistance) has no bearing on your host responsibilities.
How to Get Your First Airbnb Insurance Quote
You will not find this specialist insurance on standard comparison sites. Here’s how to get the correct insurance quotation.
- Gather Your Information: You will need your property's rebuild cost, contents value, and details of any high-risk features.
- Contact Specialist Providers:
- Specialist Brokers: Talk to insurance experts who can compare policies.
- Direct Insurers: Look for companies that specialise in this field. Examples include Pikl Insurance (which offers "top-up" policies that work with your home insurance) and established brands.
- Standard Insurers: Some standard home insurers may offer a "host cover" add-on for casual, private room hosting (e.g., up to 60-90 days per year).
- Use Online Resources: Websites like a landlord advice hub can provide more context and comparisons of providers.
- Check the Details: When comparing quotes, look beyond the price. Check the excess (the amount you pay per claim), the exclusions (like gradual wear and tear or mechanical faults), and the public liability limit.
Conclusion: Don't Risk Your Biggest Asset
While AirCover's Host Protection Policy offers a helpful safety net, it is not a substitute for a comprehensive insurance policy. Relying on it or your standard homeowner's insurance leaves you, your income, and your most valuable asset exposed to massive financial risk.
By investing in the correct specialist insurance for your holiday accommodation or serviced accommodation business, you are protecting your property, your income, and your peace of mind.
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