Buying a holiday home feels like a place to escape the 9-to-5, gather family, or even earn a little extra income. But there’s also the not-so-sunny side: protecting that slice of paradise usually costs more than you expect.
In the UK, the average holiday home insurance premium is 20–50% higher than a standard home policy. Why? Because a cottage sitting empty in Cornwall for three months, or a lake house with new guests every weekend, carries far more risk than the average family home.
At Policy Powerhouse, we know that balancing cover and cost can be tricky. So, let’s cut through the confusion and get straight to the point – what you’ll really pay, why it costs what it does, and how to make sure you’re getting genuine value for your money.
Holiday home insurance is more expensive than standard home insurance because the risks are higher.
Empty properties are more vulnerable to theft, burst pipes, and unnoticed damage. If you let your property to guests, there’s also the added risk of accidental damage or liability if someone gets injured.
Insurers take all this into account, which means your premium reflects the property’s exposure, and not just its postcode.
The price of holiday property insurance depends on:
When your property is empty, there’s no one around to spot a leaking pipe or a broken window. Most insurers consider properties unoccupied after 30–60 days, which increases risk and therefore cost.
Installing smart water sensors, security alarms, or arranging caretaker visits can reduce those premiums.
Insider tip: Some insurers offer discounts for remote monitoring or “smart home” tech that alerts you to damage or motion when you’re away.
The UK’s most popular holiday spots are often the riskiest to insure. Coastal homes in Cornwall or Norfolk, for example, may face higher flood or storm damage premiums, while rural cottages in the Lakes or Wales might be far from fire services or mains water. However, proximity to a fire station or reliable water supply can reduce premiums by up to 15%.
If you rent your property out, even occasionally, you’ll need holiday let insurance rather than standard holiday home cover. This includes public liability insurance, which protects you if guests are injured on your property.
Guest stays mean more wear and tear and greater exposure to accidental damage. The good news is that Policy Powerhouse offers flexible cover for both private and rental use, so you only pay for what’s relevant to you.
Modern wiring, solid locks, and a well-maintained roof can all reduce the risk of claims. Neglect, on the other hand, is a red flag for insurers. Keep up with small repairs, and document maintenance work, to prove your property is cared for.
So, how much does holiday home insurance cost in the UK? Here’s what you can expect on average:
|
Property Type |
Typical Annual Premium |
|
1-bedroom holiday home |
Around £290 |
|
2-bedroom |
£320–£350 |
|
3-bedroom |
£430–£450 |
|
4-bedroom |
£600 |
|
Short-term holiday let (includes guest cover) |
£650–£800 |
Premiums vary by provider and location, but most include buildings and contents cover, liability, and loss of rental income protection.
Policy Powerhouse tip: If you combine buildings and contents cover into one policy, you could save between 5–15% annually.
Cover limits matter. A higher rebuild value or expensive furnishings mean you’ll need broader protection.
Typical limits include:
Adding extras like accidental damage or legal expenses cover increases peace of mind, and your premium, but for many owners, it’s worth it.
Cheaper policies often mean higher excesses or missing features. Look out for exclusions around:
Always check what’s not included before signing.
What’s typically covered:
What’s usually not covered:
If your property isn’t your main residence, you’ll need specialist home insurance for holiday homes to stay fully protected
Did you know? Homes with monitored security systems are 30% less likely to experience theft claims – and insurers reward that.
It’s not a legal requirement, but most mortgage lenders will insist on it. And without it, any damage, theft, or liability claims fall entirely on you.
Not safely. Most home insurance excludes second homes due to increased risk and periods of unoccupancy. Always opt for specialist holiday property insurance instead.
Yes, guest use raises liability and damage risks. But a tailored policy ensures you’re covered fairly, without unnecessary extras.
Location, occupancy, rebuild value, and rental activity. Properties near the coast, in flood zones, or let frequently will generally cost more.
Yes. Multi-property cover simplifies management and can lower the overall cost.
Once a year, or after any major change – renovation, rental activity, or new security features can all affect premiums.
With 30+ years in insurance, we specialise in holiday home buildings insurance, covering even non-standard or complex properties.
Our tech-driven platform uses data enrichment to simplify the application process, so you spend less time on forms and more time enjoying your property.
We partner with top-rated UK insurers to offer dependable protection and competitive pricing.
From Cornish cottages to Cotswold barns, we protect second homes of every shape and size – including options for letting, unoccupied periods, and unusual property types.
Owning a holiday home is great, but protecting it properly is essential. Whether you use it for family holidays or short-term rentals, our specialist holiday home insurance gives you the cover you need, without the fuss.
Get a tailored quote today for your holiday home and discover how easy it is to insure your property with Policy Powerhouse.
