Holiday home insurance UK: Your essential guide

Despite it's unreliable climate, the UK has huge appeal as a second holiday home destination. Whether you're looking at buying a second property in a sleepy Cornish surf town, or up in the breathtaking Scottish highlands, you'll need holiday home insurance. Having the right cover will give you peace of mind that your property will be protected against unexpected risks, should the worst happen.  

In this guide, we'll explore everything you need to know about holiday home insurance in the UK, from the cover you'll need, what to know about holiday lets, and how you can save money along the way.  

What's covered:

• What is holiday home insurance?
• What does holiday home insurance in the UK cover?
• What cover do I need to rent out my holiday home in the UK?
• How much does holiday home insurance cost?
• 6 ways to reduce the cost of your UK holiday home insurance
• Your next step
• FAQs

Are you looking for holiday home insurance for your property in the UK? At Howden, our team of trusted experts can help you find a policy that’s the perfect fit for you.

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What is holiday home insurance?

Holiday home insurance is a specialised policy designed for holiday homes or second properties that are used for leisure or short-term letting, rather than as your main residence.

Holiday homes are often left unoccupied for long periods of time or rented out to paying guests, leaving them exposed to increased risks. A standard home insurance policy won't be suitable for a holiday home, which is why specialist cover is essential to protect your property against these risks.

What is the definition of a holiday home for insurance?

Insurers class a home to be a holiday home or second home if it:

• Is used by the owner and family/friends for recreational use for holidays or short breaks.

• Is let out for financial reward providing the property is let for recreational holidays or short breaks, no single let can exceed 6 weeks.

• Is located in an area that insurers perceive would be used in for holiday use.

• Is of standard construction, being built of brick, stone or concrete and roofed with slates, tiles asphalt or concrete. However underwriters will consider other construction if it complies with building regulations.

What does holiday home insurance in the UK cover?

Similar to standard home insurance, there are three main types of cover: buildings, contents, or a combined buildings and contents policy. For holiday homes, it’s strongly recommended to have both buildings and contents insurance as the bare minimum.

UK holiday home insurance often includes these core elements, plus additional options for extra protection:

• Unoccupancy cover

• Accidental damage cover

• Alternative accommodation cover

• Emergency travel costs cover

• Legal cover

If you plan to rent out your property, you should also consider:

• Loss of rental income cover

• Employers' liability cover

Note: If your holiday home insurance doesn’t already include these features, you can usually add them as optional extras to make sure your cover fits your needs.

Let's take a look at each type of insurance in more detail:

Buildings insurance

Buildings insurance protects the structure of your UK holiday home and permanent fixtures against risks such as fire, storm damage, flooding, and vandalism. This includes walls, roofs, fitted kitchens, and bathrooms.

Important: If your holiday home is mortgaged, buildings insurance is usually required by the lender.

Contents insurance

Contents insurance covers items inside your property, such as furniture, appliances, and personal belongings, against loss or damage.

Escape of water or oil

Typically included as standard, this covers damage caused by leaks from pipes, heating systems, or household appliances. It applies to both structural elements (walls, floors, ceilings) and your contents.

Public liability insurance

Public liability insurance protects you if a guest or third party is injured or their property is damaged while staying at your holiday home. This is strongly recommended if you rent out your property.

Accidental damage cover

This provides protection for your property and contents against accidental damage, including incidents caused by guests.

Unoccupancy cover

Holiday homes are often left empty for long periods, which increases risks like theft and leaks. Unoccupancy cover extends protection beyond the standard 30-day limit, often up to 60 days or more, subject to conditions such as removing valuables.

Legal cover

Holiday home legal insurance provides cover in the event of a legal dispute related to your holiday home in Spain. This could include:

• Contract - If you have a dispute about:

• Buying or renting out your holiday home for leisure purposes,

  • buying or hiring,

  • your tenancy or a lease where you are a tenant or lessee.

• Property - Against another party who causes damage to your holiday home, nuisance or trespass.

• Tax - To have help from an accountant if HMRC investigate your personal tax affairs.

• Legal defence - For the cost of legal representation if you are investigated for or charged with an incident arising out of the letting out of your holiday home.

Alternative accommodation cover

If your holiday home becomes uninhabitable due to an insured event, this cover pays for temporary accommodation so you and your family have somewhere to stay during repairs.

Also read: The importance of alternative accommodation cover

Emergency travel costs

This cover reimburses the cost of travelling to your holiday home in an emergency, such as a burst pipe, fire, or storm damage.

What cover do I need to rent out my holiday home in the UK?

While there is no legal requirement to have insurance for holiday lets in the UK, it's strongly recommended to have public liability insurance, protecting you against any claims made by guests for injury or damage to their property.

The following cover options are also recommended for holiday lets:

Loss of rent cover

If your holiday home becomes uninhabitable due to an insured event such as fire, flooding, or storm damage, loss of rent compensates you for income lost from cancelled bookings.

Employers’ liability insurance

If you employ staff at your holiday home, (e.g., cleaners, gardeners, or maintenance workers) employers’ liability insurance is legally required in the UK.

It protects you if anyone you employ are injured or fall ill while working, covering both medical and legal costs.

How much does holiday home insurance cost?

Insuring a holiday home in the UK can be more expensive than standard home insurance because of the additional risks involved. Costs vary between providers and depend on several factors, including:

• Location of the property

• Type and size of the home

• Rebuild value

• Security measures in place

• Value of your contents

• Claims history

• Overall risk of loss or damage

As a general rule, properties considered higher risk tend to attract higher premiums.

6 ways to reduce the cost of your UK holiday home insurance

Looking to reduce the cost of your insurance? Here are six practical tips:

1. Stay on top of maintenance

Regular upkeep reduces the risk of claims and helps keep premiums lower.

2. Improve your security

Install alarms, approved locks, and cameras to deter break-ins and potentially lower costs.

3. Increase your excess

Opting for a higher excess can reduce premiums, but make sure it’s an amount you can comfortably afford if you need to claim.

4. Use a single insurance provider

Combining your buildings, contents, and any extras with one insurer is usually cheaper than taking out multiple policies.

5. Pay annually

Paying your premium in one yearly lump sum often costs less than monthly instalments.

6. Compare quotes

Shop around online and compare holiday home insurance quotes before committing to a policy.

Your next step

Are you looking for holiday home insurance for your property in the UK? Whether it's for personal use or holiday lets, at Howden, our team of trusted experts can help you find the right cover for your needs. Get a quote today or call us at 0117 403 3000

Hear from our insurance expert…

What’s new or changed in the holiday home insurance market which I should be made aware of?

"One of the most common claims on holiday homes is for escape of water e.g. pipes bursting. Holiday homes tend to be left unoccupied for longer periods, so any damage may not be found quickly, resulting in high claim costs - especially with the cost of construction/living in recent years. Holiday home insurers have started increasing their escape of water excess to reduce claims, so if you are adding a voluntary excess, check if that’s on top of the escape of water excess."

Rob Neal, holiday home insurance expert.

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