Airbnb Insurance UK: Essential Cover for Hosts & Properties

Hosting your property on Airbnb in the UK can be a great way to earn extra income. However, it brings unique risks that standard home insurance does not cover.

When guests stay in your property, you face potential liability claims and property damage. These issues could cost thousands of pounds.

Airbnb provides basic protection through their AirCover programme, but this coverage has significant gaps that could leave you financially exposed. Many UK hosts only realise they need specialist insurance after facing a loss.

Understanding your insurance options is crucial for successful hosting. You need to review Airbnb’s protection schemes, compare dedicated holiday let insurers, and check for coverage gaps in your current policy.

What Is Airbnb Insurance in the UK?

Airbnb insurance in the UK combines the platform’s built-in protections with specialised policies you buy separately. Standard home insurance does not cover commercial letting activities like hosting guests.

Definition and Key Features

Airbnb insurance in the UK includes two main parts: Airbnb’s coverage and additional policies you purchase yourself.

AirCover for Hosts is Airbnb’s free protection programme. It provides £1 million in liability insurance for guest injuries and £3 million for damage to your home and belongings caused by guests.

UK hosts receive this liability insurance automatically when they list their property on Airbnb. You cannot opt out.

Additional insurance policies fill the gaps that AirCover does not cover. These include holiday let insurance and specialist Airbnb host insurance from UK providers.

Key features of comprehensive Airbnb insurance include:

• Public liability coverage for guest injuries
• Property damage protection from fire, flood, or theft
• Contents insurance for your belongings
• Loss of income cover if you can’t host due to damage
• Legal expense protection for disputes

How It Differs From Standard Home Insurance

Your regular home insurance does not cover you when you rent out your property on Airbnb. Most standard policies exclude commercial activities and paying guests.

Insurers view hosting strangers for money as a business activity. This increases your risk level.

Key differences include:

Standard Home Insurance	Airbnb Insurance
Covers personal use only	Covers commercial letting
Excludes paying guests	Includes guest-related claims
Lower liability limits	Higher liability coverage
Cheaper premiums	Higher cost due to increased risk

Holiday let insurance covers the risks of hosting strangers, such as damage from parties, theft by guests, and injuries on your property.

You must tell your current insurer about your Airbnb activities. If you do not, you risk voiding your policy.

Importance for Airbnb Hosts

Proper insurance protects your property investment and finances from costly claims. Guest injuries, property damage, and legal disputes can be expensive.

AirCover alone does not provide enough protection. It has many exclusions and will not cover all situations you might face as a host.

Financial protection is the main benefit. If a guest causes £20,000 of damage or suffers a serious injury, you could face huge bills without proper coverage.

Legal compliance matters too. Some mortgage lenders require specific insurance for holiday lets, and local councils may have their own requirements.

Peace of mind lets you focus on hosting instead of worrying about risks. Comprehensive coverage prepares you for most situations.

Without proper insurance, a single bad incident could force you to stop hosting or face financial ruin. The cost of premiums is small compared to potential claims.

Types of Airbnb Insurance Cover Available

Airbnb hosts in the UK need specialist insurance that covers property damage, guest injuries, and legal disputes. Standard home insurance usually excludes short-term rental activities, so dedicated cover is essential.

Airbnb Host Liability Insurance

Host liability insurance protects you if guests get injured at your property. This cover handles legal costs and compensation claims for injuries during their stay.

Public liability insurance covers accidents like slips, falls, or injuries from faulty equipment. Most policies provide £2 million coverage as standard.

Product liability protects against claims from defective items in your property, such as broken furniture or faulty appliances that cause harm.

Key benefits include:

• Legal defence costs
• Medical expenses for injured guests
• Compensation payments
• Court fees and solicitor charges

Some insurers require safety measures like smoke alarms and carbon monoxide detectors. You must maintain your property to reasonable standards to keep coverage valid.

Employers’ liability insurance is mandatory if you hire staff like cleaners or maintenance workers. This separate cover costs extra but is legally required.

Buildings and Contents Protection

Buildings insurance covers the structure of your property against damage from fire, flood, storm, and vandalism. Contents insurance protects furnishings, appliances, and personal belongings inside.

Buildings cover includes:

• Structural repairs from weather damage
• Vandalism by guests or intruders
• Subsidence and ground movement
• Alternative accommodation during repairs

Contents protection covers:

• Furniture and soft furnishings
• Kitchen appliances and electronics
• Bedding, towels, and linens
• Accidental damage from guests

Many policies offer accidental damage cover for guest mishaps. This includes spilled wine on carpets, broken furniture, or damaged electronics.

Theft protection covers stolen items even when guests have keys. Standard home insurance often excludes theft without forced entry.

Coverage limits vary between insurers. Check that your sum insured amounts match your property’s rebuild costs and contents value.

Legal Expenses Cover

Legal expenses insurance helps with disputes involving guests, neighbours, or local authorities. This cover pays for solicitor fees, court costs, and legal representation.

Common claims include:

• Guests who refuse to leave
• Property damage disputes
• Planning permission challenges
• Tenancy deposit disagreements

Most policies provide £100,000 legal expenses cover. This amount covers most disputes without extra costs to you.

Employment disputes with staff like cleaners or maintenance workers are also covered. This includes unfair dismissal claims and workplace injury cases.

Some insurers offer 24/7 legal helplines with immediate advice. This service helps resolve issues before they become expensive legal battles.

Prosecution defence protects against health and safety charges from local councils. This is important if guests report safety issues to authorities.

You usually need a reasonable chance of success before insurers approve legal action. Insurers will not fund frivolous claims or clear-cut losses.

Airbnb’s Own Insurance Programmes

Airbnb provides two main insurance programmes for UK hosts: the Host Guarantee covering property damage up to £600,000 and Host Liability Insurance offering £1 million in coverage. Both programmes come free with your hosting account but have important limitations.

Airbnb Host Guarantee

The Host Guarantee protects your property and belongings when guests cause damage during their stay. This programme covers up to £600,000 per incident in the UK.

You can claim for damage to your furniture, electronics, and other personal items. The programme also covers structural damage to your property caused by guests.

What’s included:

• Furniture and appliance damage
• Electronics and personal belongings
• Structural damage to walls, floors, and fixtures
• Theft of your items by guests

You must report damage within 14 days and provide photos, receipts, and detailed descriptions. Airbnb reviews each claim individually and may request repair quotes or replacement costs.

Host Liability Insurance by Airbnb

Host Liability Insurance gives you £1 million in coverage if guests get injured on your property. This protection is automatic for all UK hosts.

The insurance covers medical bills if a guest gets hurt during their stay. It also protects you if guest belongings are damaged or stolen at your property.

Coverage includes:

• Guest injuries on your premises
• Damage to guest belongings
• Legal costs if you’re sued
• Claims against co-hosts and cleaning staff

The insurance applies when you are legally responsible for the incident. You must file claims through Airbnb’s online form.

A third-party insurer manages all claims and assigns a representative to your case.

Limitations and Exclusions of Airbnb’s Policies

Both programmes have significant gaps that could leave you exposed. Standard home insurance often does not cover commercial letting activities like Airbnb.

Key exclusions include:

• Intentional damage by you or guests
• Normal wear and tear
• Cash and valuable items above certain limits
• Business equipment and inventory

The Host Guarantee does not cover everything your home insurance might exclude. Many claims are rejected due to insufficient evidence or policy limitations.

Host Liability Insurance excludes hosts offering experiences or services. It also does not cover stays in Japan or through certain Airbnb booking channels.

You must follow Airbnb’s terms of service to keep your coverage. Breaking these rules could void your protection.

Comparing Dedicated Airbnb Insurance Providers

Specialist Airbnb insurance differs from standard home policies in coverage and cost. Major UK insurers like Towergate and Pikl offer dedicated short-term rental protection with liability limits up to £10 million.

Specialist Insurance vs. Standard Home Insurance

Your standard home insurance does not cover guests staying in your property. Most home policies exclude commercial activities like short-term letting.

Key differences include:

Standard Home Insurance	Specialist Airbnb Insurance
Excludes paying guests	Covers guest-related incidents
Limited liability cover	Up to £10m liability protection
Personal use only	Commercial letting included
Lower premiums	Higher costs but proper cover

Specialist policies protect you when guests cause damage or suffer injuries. They cover malicious damage caused by guests.

Standard policies may become void if you let your property without telling your insurer. You could face refused claims and cancelled coverage.

Leading UK Insurers Offering Airbnb Cover

Several UK insurers now offer dedicated Airbnb host insurance with varying coverage levels and features.

Towergate provides liability cover up to £2 million for third-party claims and £10 million for domestic staff like cleaners. They offer specialist holiday let policies for short-term rentals.

Pikl offers flexible coverage up to £5 million in public liability per claim. Their policies cover both accidental and malicious guest damage and have 5-star Defaqto ratings.

Proper Insurance focuses on comprehensive STR coverage, including buildings, contents, and business revenue protection. They cover pet damage and even bed bug infestations.

These providers understand short-term rental risks better than standard insurers. They offer faster claims processing and dedicated support teams.

How to Select the Right Provider

Start by comparing liability limits across different providers. Look for at least £2 million cover, but consider higher limits for valuable properties.

Check what types of damage the policy covers. Some policies exclude intentional damage, while others include malicious acts by guests.

Essential questions to ask:

• Does the policy cover guest accidents?
• Are contents included in the coverage?
• What’s the excess amount for claims?
• Is legal expense cover included?

Read policy exclusions carefully before buying. Some insurers won’t cover certain property types or locations.

Get quotes from several providers to compare costs. Prices vary based on property value and letting frequency.

Consider extra features like emergency accommodation cover and loss of rental income protection. These can help during lengthy repairs.

Key Considerations When Choosing Cover

Your choice of Airbnb insurance affects how well you protect your property and finances. Policy details, coverage duration, and costs determine if you have enough protection when claims arise.

Policy Inclusions and Exclusions

Standard inclusions cover property damage from guests, public liability claims, and contents protection. Most policies include accidental damage to furniture and fittings.

Common exclusions often include:

• Deliberate damage by guests
• Wear and tear from normal use
• High-value items like artwork or jewellery
• Business interruption losses

Review your policy wording carefully. Some insurers exclude certain types of guests or booking platforms beyond Airbnb.

Liability coverage should protect you if guests injure themselves on your property. Standard amounts range from £1 million to £5 million.

Contents coverage varies between insurers. Check if your valuable items need separate coverage or higher limits.

Duration and Flexibility of Cover

Annual policies suit hosts who rent regularly throughout the year. These provide continuous protection and often cost less per day.

Short-term policies work better for occasional hosts. You can activate coverage only when you have bookings.

Automatic renewal helps prevent coverage gaps. Some insurers offer this to keep your policy active without interruption.

Seasonal adjustments may be available if you only host during certain months. This can reduce your premiums.

Check if you can adjust your coverage levels during the policy term. Your hosting patterns might change as your business grows.

Cost and Excess Considerations

Premium factors include property value, location, guest capacity, and claims history. Urban properties usually cost more to insure than rural ones.

Excess amounts affect your premium and out-of-pocket costs when claiming. Higher excesses reduce premiums but increase your financial risk.

Payment options vary between insurers:

• Monthly instalments
• Annual lump sums
• Pay-per-booking arrangements

Discount opportunities include multi-property discounts, no-claims bonuses, and security system reductions.

Compare total costs, including arrangement fees or cancellation charges. The cheapest premium may not offer the best value if coverage is limited.

Claims Process and Host Responsibilities

When damage or injury occurs during an Airbnb stay, you need to understand the claims process and your responsibilities as a host. The process requires specific documentation and actions to ensure a successful claim.

How to Make a Claim

Report incidents through Airbnb’s platform as soon as possible after they happen. This applies to property damage, guest injuries, or any other covered events under your Host Liability Insurance.

Log in to your Airbnb host account and go to the resolution centre. Complete the incident report form with accurate details about what happened, when it occurred, and who was involved.

For property damage claims, use Airbnb’s Host damage protection. For guest injuries or third-party property damage, file under the Host Liability Insurance programme.

The process usually involves:

• Initial incident reporting through the platform
• Assignment of a claims adjuster or third-party handler
• Investigation period with possible delays
• Final determination and payout if approved

Contact Airbnb’s 24-hour safety line immediately for serious incidents. This ensures proper documentation from the start.

Documentation and Evidence Required

Strong documentation improves your chances of a successful claim. Start collecting evidence immediately after discovering damage or receiving notice of an injury.

Essential documentation includes:

• Photos of damage from multiple angles
• Police reports for criminal activity or serious injuries
• Medical reports for guest injuries
• Witness statements when available
• Communication records with the guest
• Original receipts for damaged items

Take photos before cleaning up or making temporary repairs. Document the scene exactly as you found it to provide clear evidence.

Keep detailed records of all expenses related to the incident. This includes repair estimates, replacement costs, and any temporary accommodation you arranged for affected parties.

Store all documentation digitally with backup copies. Claims processors need clear, detailed evidence to verify your claim.

Host Obligations to Remain Covered

Your coverage under Airbnb’s Host Liability Insurance depends on meeting ongoing obligations. Failing to meet these requirements can void your coverage.

You must keep your property safe for each stay. This includes working smoke detectors, secure railings, and hazard-free common areas.

Key obligations include:

• Maintaining accurate property listings with disclosed amenities
• Ensuring guest identity verification through Airbnb’s platform
• Responding promptly to safety concerns raised by guests
• Complying with local regulations and licensing requirements

Avoid activities that could void coverage, such as using undisclosed cameras in private areas or hosting events beyond your property’s capacity.

If you have six or more active Airbnb listings, extra insurance requirements may apply. The Host Liability Insurance may only provide excess coverage above your primary commercial insurance policy.

Keep your listing information current and accurate. Misrepresenting your property’s features or safety measures can result in claim denials and coverage cancellation.

Conclusion

Getting the right Airbnb insurance protects your property investment and gives you peace of mind. Standard home insurance won’t cover short-term letting, so you need specialist cover for guest damage, liability claims, and lost rental income.

AirCover provides basic protection, but it’s not enough on its own. You need proper commercial insurance that covers accidental damage and public liability. This investment protects your business from expensive claims and repairs.

Ready to protect your Airbnb property? Contact JF Property Partners today for expert advice on insurance requirements and property management solutions. Our team understands the UK short-let market and can help you choose the right coverage.

Get in touch via email at info@jfpropertypartners.com, call us on +44 7457 427143, visit our website, or fill out our contact form. We’re here to help you navigate the complexities of Airbnb insurance with confidence.

Frequently Asked Questions

Many Airbnb hosts in the UK have similar concerns about insurance requirements and coverage options. Knowing the specific types of insurance available and their benefits helps you make informed decisions about protecting your property and rental business.

What insurance do we need for Airbnb?

You need specialised short-term rental insurance, as standard home insurance usually excludes commercial letting. Essential cover includes buildings insurance for property structure, contents insurance for furnishings and appliances, public liability insurance for guest injuries, and loss of rental income cover. Check your mortgage terms, as some lenders require buildings insurance.

What does the Airbnb insurance cover?

Airbnb property insurance typically covers guest damage, including theft and malicious damage, fire, flood, storm damage, and water escape. It protects contents like furniture and electronics, handles structural repairs, and includes liability protection up to £5 million. Most policies also cover loss of rental income, emergency access costs, lock replacement, and may include legal expenses.

What is the best insurance for Airbnb hosts?

The best insurance depends on your property type, location, and rental frequency. Look for policies specifically mentioning short-term lets or Airbnb hosting with adequate coverage limits. Consider insurers offering 24/7 claims support, UK-based customer service, and coverage for empty periods between bookings. Always read policy exclusions carefully.

Is it worth it to get Airbnb insurance?

Yes, Airbnb insurance is essential protection for UK hosts. The cost of damage or repairs typically exceeds insurance premiums, and standard home insurance won’t cover commercial letting activities. Loss of rental income protection maintains cash flow during repairs, whilst the financial protection and peace of mind justify the cost for most hosts.

Do Airbnb owners need insurance?

Yes, UK Airbnb owners need specialised short-term letting insurance. Standard home insurance excludes commercial use and paying guests, and using it for Airbnb could invalidate your policy. Mortgage lenders often require building insurance, and operating without proper cover exposes you to significant financial risk from guest injuries, property damage, and theft claims.

Can Airbnb hosts in the UK require guests to have their own travel insurance?

You cannot require guests to purchase travel insurance when booking, but you can recommend it. Guest travel insurance typically covers trip cancellations, medical expenses, and personal belongings.