Holiday Lets holiday let insurance – what does it cover?

Policy Powerhouse

22 November 2021

Holiday let insurance covers scenarios that standard buildings and contents insurance won't cover when renting your property on a short-term commercial basis. Find out what's included.

Holiday Lets About

Protection for Holiday Let Owners

Holiday Lets is a buildings and contents insurance policy provided by Policy Powerhouse, to cover properties that are occupied by paying and non-paying guests. Often referred to as holiday let insurance,  it covers scenarios that standard buildings and contents insurance won’t cover when renting your home to paying guests on a short-term commercial basis.

If you rent your second home out, you should check whether your insurance covers claims caused by guests occupying your property.

What’s included?

A Holiday Lets policy from Policy Powerhouse includes:

  • Buildings insurance up to £1,000,000. We use RICS (Royal Institute of Chartered Surveyors) Building Cost Information Service calculator to estimate the rebuild cost of the property and provide you with this guidance, but you can select your sum insured
  • Contents insurance up to £10,000, with the option to increase your sum insured to £100,000
  • Public liability up to £5m, including cover for accidental bodily injury and accidental damage to property 
  • Accidental damage to buildings
  • Landlords contents up to £10,000
  • ID Fraud up to £25,000 
  • Alternative accommodation for guests if your property cannot be lived in following damage
  • Fire and water damage including when caused by guests
  • Replacement locks following the theft or loss of keys
  • Employers’ liability insurance a legal requirement if you employ staff such as a cleaner or gardener
  • Loss of rental income if the premises cannot be occupied as a result of damage insured – ‘standard’ cover equivalent to 25% of the building’s sum insured for a period of 24 months or longer if required. The following is covered:
    • Loss of rent receivable if your buildings cannot be lived in or access to them is denied as a result of damage insured 
    • Ground rent 
    • Professional accountant charges
    • Automatic rent review an increase to reflect the revised rent receivable amount

Additional optional cover:

  • Theft and malicious damage caused by guests
  • Home emergency cover giving you and/or your guests immediate assistance
  • Legal expenses cover
  • Accidental damage to contents

For more information you can refer to our Holiday Let FAQs.

How to obtain a quote / purchase

Our digital platform makes obtaining a quote and purchasing your cover quick and easy. The site will be available soon, but in the meantime please send your details to us by clicking here.

The Insurer

Holiday Lets policies is provided by Modus Underwriting Limited and underwritten by Great Lakes Insurance SE and are unique to Policy Powerhouse. Great Lakes Insurance SE is part of the Munich Re Group which is one of the largest insurers worldwide.The insurer details provided below can be checked on the Financial Services Register by visiting: or contacting the Financial Conduct Authority on 0800 111 6768.


Claims should be made via the Policy Powerhouse claims line as per the policy document.

Find out more