Short-term letting has surged in popularity thanks to platforms like Airbnb, Vrbo, and Booking.com. For many property owners, it’s a great way to generate income with more flexibility than long-term tenancies. But what many landlords don’t realise is that standard home or landlord insurance isn’t designed for short-term lets.
If you’re hosting paying guests—even occasionally—you need to ensure your insurance reflects the unique risks of short-term rental activity. In this article, we’ll break down what short-term rental insurance is, why it matters, and how to make sure you’re properly covered.
Why Standard Insurance Falls Short
Standard landlord or home insurance typically assumes one of two things:
- The property is your main residence
- The property is let on a long-term basis
In contrast, short-term rentals are:
- Frequently occupied by different guests
- Often booked with little notice
- More likely to involve wear and tear or accidental damage
Because of this, insurers view short-term letting as higher risk. If you haven’t disclosed this use, any claims made while the property is being rented out could be rejected.
What Risks Do Short-Term Rentals Face?
Accidental Damage
Guests may not treat your property as carefully as long-term tenants. Spills, breakages, and furniture damage are more common.
Theft or Vandalism
With frequent turnover, there’s a higher chance of items being stolen or damaged—especially if key handovers aren’t managed securely.
Liability Risks
If a guest injures themselves on your property—say, due to a loose stair tread—you could be liable for compensation.
Fire, Flood, and Escape of Water
Damage caused during a guest’s stay (even accidentally) may not be covered under standard policies.
Loss of Income
If your property becomes uninhabitable and you lose bookings, you could miss out on income without specialist cover.
What Does Short-Term Rental Insurance Cover?
At Carbon Insurance Brokers, we offer specialist policies that can be tailored to suit short-term let properties. These often include:
- Buildings & Contents Cover – Including accidental and malicious damage by guests
- Public Liability Insurance – Essential if guests suffer an injury or damage occurs to their belongings
- Loss of Income Cover – Protecting your revenue if the property can’t be rented out due to an insured event
- Legal Expenses Cover – Support for resolving disputes or claims
- Flexible Terms – Cover whether you rent out all year or just seasonally
Do You Need Insurance If You Only Rent Occasionally?
Yes. Even if you’re only renting your home for a few weekends a year, you still need to tell your insurer. Failing to do so could invalidate your cover altogether. Many insurers now offer short-term let add-ons or flexible specialist cover to suit casual hosts.
Top Tips for Landlords Using Airbnb and Similar Platforms
Be Honest with Your Insurer
Always disclose your property use. If you plan to rent short-term, say so from the outset.
Screen Your Guests
While platforms like Airbnb offer reviews, consider setting rules and asking questions before confirming a booking.
Secure the Property
Use smart locks, security cameras (in shared spaces only), and fire alarms. These reduce risks—and may lower your premiums.
Have Clear House Rules
Communicate rules in writing to help prevent damage and reduce the risk of liability claims.
Maintain Your Property
Regular maintenance checks can help spot issues before they become insurance problems.
Contact Us
At Carbon Insurance Brokers, we specialise in non-standard and complex property cover. Whether you’re letting a city flat occasionally or run a full-time holiday rental, we can help you find flexible, tailored insurance that truly protects your property and income.
Speak to our expert team for a quote or personalised advice today by calling us on 0333 043 1300 or making an enquiry.
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