Holiday Let Insurance in Wales When You Live Abroad: What We Learned
One of the owners we work with lives in mainland Europe. A few weeks ago he forwarded me his home insurance renewal and asked a simple question: was it fine for the flat in Cardiff?
It wasn't. It was a standard residential policy — the kind you buy for a home you live in — and it said nothing about paying guests. So we set about finding proper cover, and discovered very quickly how much harder that is when the owner doesn't live in the UK. Online quote forms wouldn't accept his home address. Comparison sites went nowhere. In the end a specialist holiday-home broker quoted a policy with £10 million of public liability and contents cover, the owner reviewed it and signed it himself, and the flat was properly protected within days.
If you own a holiday let in Wales and live abroad — or you simply aren't sure your policy covers guests — this is what we learned about holiday let insurance along the way.
Why your home insurance probably doesn't cover guests
A standard home policy assumes you live there, or that it is let on a normal tenancy. Short-term letting to paying guests is a business use, and most residential policies either exclude it or expect you to tell them about it. Consumer guidance is consistent on this point: if part of the property is used to make money and the insurer doesn't know, you risk the cover being void.
What happens if you don't disclose it depends on the circumstances. Under the rules for consumer policies, if the insurer decides a misrepresentation was deliberate or reckless, it can cancel the policy and keep the premium. If it was careless, the insurer can treat the policy as if it had known the truth — which can mean a proportionate payout. If you paid two-thirds of the premium you should have paid, you might receive two-thirds of the claim. Business policies have their own "fair presentation" duty, with similar consequences. Either way, the lesson is the same: tell the insurer exactly how the property is used, in writing, and keep a copy.
What holiday let insurance in Wales should include
Policies vary a great deal, so read the schedule rather than the headline. These are the items we check for every owner:
Public liability for guests and visitors. £5 million is a common standard; many owners choose £10 million.
Contents, including furniture, linen and electricals supplied for guests.
Accidental and malicious damage by guests. Some insurers include it, others exclude it where there are paying guests — check.
Loss of rental income, which normally only pays after an insured event such as a fire or flood stops you letting. It won't cover a quiet month or a bad review.
Employers' liability if you employ anyone directly, such as a cleaner on your payroll. It is a legal requirement once you employ staff, with a minimum of £5 million of cover.
Legal expenses, useful for disputes with guests or contractors.
Unoccupancy conditions. Many policies restrict cover if the property is empty for more than 30 or 60 days, and set conditions for winter heating.
If it's a flat, the building is usually someone else's policy
In a block or a converted house, the buildings insurance is normally arranged by the freeholder, the managing agent or the residents' management company, and recharged through the service charge. Your own policy then covers your contents and liability. In our owner's case, the building was insured under the block policy held by the building's management company, so his new policy needed to cover contents and public liability, and to say clearly that the flat is let to holiday guests.
Three things to check before you let:
Tell the block insurer. The building's insurer may load the premium, raise the excess or decline a short-let flat — and an undisclosed change of use can cause problems for everyone in the building.
Read your lease. A clause limiting use to a "private residence" can rule out short lets entirely. The Upper Tribunal has held that stays of days or weeks can breach that kind of covenant.
Ask your lender. If there is a mortgage, most lenders need written consent for holiday letting.
AirCover is not your insurance
This catches a lot of owners out. Airbnb's AirCover for Hosts combines host liability insurance of up to $1 million with up to $3 million of host damage protection — but Airbnb itself says the damage protection is not an insurance policy, that it only applies to Airbnb bookings, and that it is not a substitute for your own insurance. Damage claims also have to be made within 14 days of checkout.
Booking.com offers free partner liability insurance of up to £1 million in the UK for injury to guests and damage to their property, but it does not cover damage to your own home and Booking.com describes it as extra cover alongside your own policy. If you take bookings on more than one channel — and most well-run lets do — you need a policy that covers every booking, whatever the source.
Living abroad: why getting quoted is harder
Since Brexit, UK insurers who want to serve customers living in an EU country have to comply with that country's rules, and many simply stopped. Some insurers ask for a UK passport, a UK bank account or a UK-based managing agent before they will quote an overseas owner. In our experience, mainstream online quote journeys are often the first thing to fail, because they expect a UK home address.
What worked for us was going directly to a specialist holiday-home broker and explaining the situation in writing: where the owner lives, how the flat is let, who manages it, and how the building is insured. A few practical tips:
Use an FCA-authorised broker and check them on the FCA register, including that the contact details match. Clone firms do exist.
Put everything in writing. It protects you on disclosure, and if English isn't your first language it gives you time to read the policy properly.
Authorise your manager to speak to the broker if you'd like help with the practical questions. Our owner emailed his broker to confirm we could deal with them on his behalf — but the decision and the signature stayed his.
Two more things that trip overseas owners up
The Non-Resident Landlord Scheme. If your usual home is outside the UK, a UK letting agent that receives your rent must normally deduct basic-rate tax unless HMRC has approved you to be paid gross, which you apply for on form NRL1. You will still need to file a Self Assessment return. Speak to an accountant about how it applies to your setup.
The end of the furnished holiday lettings regime. The special tax treatment for furnished holiday lets was abolished from April 2025, so holiday-let income is now taxed much like other property income. It doesn't change your insurance, but it is worth knowing if your figures were planned under the old rules.
What's coming in Wales
Every visitor accommodation provider in Wales now needs to join the new register with the Welsh Revenue Authority by 31 March 2027. The register doesn't ask for insurance evidence — but the licensing scheme that follows will. Under the Development of Tourism and Regulation of Visitor Accommodation (Wales) Act 2026, holding public liability insurance will be a licence condition, with the amount set later in regulations. The Welsh Government expects licensing to launch in 2029, and the legal default date for most of the standards is March 2030. Getting your insurance right now means one less thing to fix later.
Before you buy cover: a checklist
The policy names short-term or holiday letting to paying guests.
Public liability of at least £5 million — consider £10 million.
Contents cover, plus accidental and malicious damage by guests.
Loss of rent, with a limit and indemnity period you understand.
Employers' liability if you employ anyone directly.
Legal expenses cover.
Unoccupancy and winter conditions you can actually meet.
The freeholder or block insurer told in writing, and your lease checked.
Lender consent, if there is a mortgage.
A broker on the FCA register who accepts your country of residence.
Gas safety certificate, fire risk assessment and alarms in place — insurers can ask for proof when you claim.
Frequently asked questions
Does my normal home insurance cover Airbnb guests?
Usually not. Standard home policies assume you live in the property or let it on a normal tenancy. Letting to paying guests is a business use that most residential policies exclude unless you tell the insurer and it agrees to cover it.
Is Airbnb's AirCover enough?
No. Airbnb says the damage protection part of AirCover is not insurance, it only applies to Airbnb bookings, and it is not a substitute for your own policy.
Can I insure a UK holiday let if I live in the EU?
Yes, but fewer insurers will quote, and online forms often expect a UK address. A specialist holiday-home broker authorised by the FCA is usually the quickest route.
How much public liability cover should a holiday let have?
£5 million is a common standard, and many owners choose £10 million. When licensing arrives in Wales, the minimum will be set in regulations.
Who insures the building if my holiday let is a flat?
Usually the freeholder or the building's management company, under a block policy. You still need your own cover for contents and liability, and the block insurer should be told the flat is short-let.
How we help
We don't sell insurance and we never sign anything on an owner's behalf. What we do is read the documents properly, explain them in plain language — in Spanish or Portuguese if that helps — and make sure the broker has the facts they need. If you own a holiday let in South Wales and you'd like a second pair of eyes on your cover, get in touch.
This article is general information based on our experience and the sources below as at October 2026. It is not insurance, legal or tax advice. Always confirm cover with an FCA-authorised broker or insurer.
Comments