Holiday Home Insurance: Cover for UK and Overseas Second Homes

What is holiday home insurance?

Holiday home insurance is a specialist form of property insurance designed for second homes used mainly for leisure rather than as a main residence. This could be a cottage in the Lake District visited a few times a year, a coastal property let out to holidaymakers, or a villa abroad used for part of the year and left empty the rest of the time.

Standard home insurance policies are usually written with the assumption that a property is occupied as someone's main residence for most of the year, so they often include restrictions on unoccupancy that make them unsuitable for a holiday home. Holiday home policies are built around the reality that these properties sit empty for extended periods and may also be let to paying guests.

Who needs holiday home insurance?

Anyone who owns a second property used primarily for holidays, whether for personal use, letting to others, or a mix of both, should consider a specialist holiday home policy rather than relying on standard home insurance. This applies whether the property is in the UK or overseas, though overseas properties often need policies specifically designed for that jurisdiction or a UK insurer with international holiday home experience.

It's particularly important for owners who let their property out, since many standard home insurance policies exclude or restrict cover where a property is used for paying guests, and a dedicated holiday let or holiday home policy is usually needed to cover the associated risks properly, such as guest liability and loss of letting income.

What's typically covered

Holiday home insurance generally covers the building and contents against standard risks such as fire, storm, flood, theft and escape of water, but with terms adjusted for extended unoccupancy, since the property may be empty between visits or bookings. Many policies also include public liability cover, which is important if the property is let out, as it protects the owner if a guest is injured or their property is damaged while staying there.

Additional covers commonly available include loss of rent or booking income if the property becomes uninhabitable following an insured event, accidental damage caused by guests, and cover for owner's contents left at the property between visits. Some policies also offer cover for alternative accommodation for the owner if needed.

• Buildings and contents cover adapted for extended unoccupancy
• Public liability cover, particularly important if letting to guests
• Loss of rent or booking income following an insured event
• Accidental damage cover, often more relevant with holidaymaker use

What affects the price

Premiums for holiday home insurance depend on factors including the property's location, rebuild cost, construction type, and how it's used — whether it's purely for personal use, let out commercially, or a combination. Properties that are let out generally require broader cover, which can affect price, as can the frequency and duration of unoccupied periods.

Other factors include the security measures in place, especially important for a property that's regularly empty, local crime and flood statistics, and whether the home is in the UK or overseas, as international properties can involve additional considerations around local building standards and legal requirements.

Tips for insuring a holiday home

Be upfront with insurers about how the property is used, including how often it's occupied, whether it's let out, and for how long it typically sits empty, as inaccurate information here is a common reason claims are disputed. If you let the property, check that the policy includes adequate public liability cover and consider whether loss of income cover is worthwhile given your rental income.

For overseas holiday homes, check whether the policy is valid under local law and whether you also need separate local cover for certain risks; a specialist broker can help clarify this. Reviewing cover regularly, particularly if your usage pattern changes from personal use to letting or vice versa, helps ensure the policy remains appropriate.

How to get a quote

Because holiday homes don't fit neatly into standard home insurance, speaking to a specialist broker can help you find cover suited to how you actually use the property. Complete the short form on this page and an FCA-authorised specialist broker will be in touch to discuss your holiday home, with no obligation to proceed.

Frequently asked questions

Can I just use standard home insurance for a holiday home?

Usually not advisable, as standard policies often restrict cover after a set number of unoccupied days and may exclude use by paying guests, which doesn't suit most holiday homes.

Does holiday home insurance cover me if I let the property out?

Specialist holiday home and holiday let policies typically include public liability cover and other protections relevant to paying guests, which standard policies often don't provide.

Will my policy cover a property I own abroad?

Some UK insurers and brokers arrange cover for overseas holiday homes, though it's worth checking that the policy is valid under local law and covers risks specific to that country.

What happens if my holiday home sits empty for months?

Holiday home policies are generally designed to accommodate extended unoccupancy, unlike standard home insurance, though insurers may still require reasonable security and maintenance measures.

Does holiday home insurance cover lost rental income?

Many policies offer optional cover for loss of rent or booking income if the property becomes uninhabitable due to an insured event such as fire or flood, though this isn't always automatic.