Short-Let Insurance for London Landlords: What You Need
Many London landlords assume that their existing landlord insurance covers a short let. Often it does not. Policies written for a tenant on a long agreement can exclude paying guests altogether, and the first you find out is when a claim is refused.
This guide explains why standard cover falls short, which protections a short-let policy should include, what you can expect to pay, and the questions to ask before you put a guest in the property.
Quick answer: If you let a London property to paying guests, you need an insurance policy that is written for short lets, with buildings and contents cover, public liability of at least £2 million (£5 million is common), and ideally loss of income and accidental damage cover. Tell your insurer exactly how the property is used and get confirmation in writing.
Why standard landlord insurance often is not enough
Standard residential landlord policies are built around a simple idea: one household living in the property on a tenancy of six months or more. Short lets are a different risk. Guests change often, stay for a few nights, and may have less incentive to treat the property carefully.
For that reason, many policies exclude short-term letting or require you to declare it. The risk is not only that a claim is refused. If you fail to tell the insurer a material fact, such as the property being let to paying guests, the insurer may be able to refuse the claim or cancel the policy. As one broker’s guide to holiday-let cover puts it, answering “a paying guest” on a residential wording can lead to the claim being declined.
The covers a short-let policy should include
Buildings insurance
This covers the structure, fixtures and fittings against fire, flood and similar events, usually on a rebuild basis. If you own a leasehold flat, the freeholder or management company normally insures the building, so you need to check the lease and what that policy covers rather than doubling up.
Contents insurance
This covers furniture, appliances, linen and kitchenware that you provide. Short lets are usually fully furnished, so contents cover matters more than it does for an unfurnished let. Check the limits and any restrictions on high-value items.
Public liability
This is the cover that matters most if a guest is injured or a guest’s property is damaged. One insurance broker’s guide says £2 million is the practical minimum and that £5 million is what many letting agencies now ask to see. Cover below the level your platform, manager or lease requires can leave you exposed.
Loss of rental income
If the property cannot be let after an insured event such as a fire or a flood, this cover replaces lost booking income for a set period. It is worth considering for a property that depends on a steady calendar.
Accidental damage
Standard policies often cover only sudden events, not wear and tear. If you want cover for accidental damage by guests, such as spills on a sofa or a broken appliance, check that it is included and what the excess is.
Employers’ liability
If you employ cleaners or other staff directly, employers’ liability insurance may be a legal requirement. If you use a managing company or a cleaning contractor, check how they are insured.
What short-let insurance costs
Prices vary with rebuild cost, location, how many guests the property sleeps and features such as a balcony or a hot tub. The same broker’s guide suggests most owners pay somewhere in the region of £300 to £1,500 a year. Central London, higher rebuild values and higher guest numbers tend to push premiums up. Treat that range as a rough guide, not a quote, and always compare what is covered, not only the price. You can read that guide at Simply Quote.
Do platform protections replace insurance?
Platforms such as Airbnb offer host protection programmes, but they are not a replacement for your own policy. They have conditions, limits and exclusions, and they do not cover everything an insurance policy covers. Read the terms carefully and keep your own cover in place.
Questions to ask before you buy
Use this short list when you talk to a broker or insurer.
- Is short-term letting to paying guests covered, in writing?
- Does the policy apply to a London property and to the way it is built, for example a flat in a block?
- What is the public liability limit, and does it match what my lease, platform or manager requires?
- Is loss of rental income included, and for how long?
- What is excluded? Look for exclusions for unoccupied periods, unattended guests and damage by guests.
- What is the excess, and how does it apply to different claims?
- Does the policy cover corporate lets of 90 nights or more?
- What do I need to do to keep cover valid? Some policies require specific smoke alarms, locks or safety checks.
Insurance and the rest of your compliance
Insurance sits alongside other duties. You also need to hold current safety certificates, track your nights against London’s cap, and check your lease and mortgage terms. Our guide to the England short-term let register includes a pre-registration checklist that covers insurance, safety and night tracking, and our guide to London’s 90-night rule explains the planning limit.
If you let on a long-let basis as well as a short-let basis, the right policy may differ. Our guide to corporate lets in London explains why insurers need to know exactly how the property is occupied.
Keeping your policy valid
A policy is only useful if it responds when you need it. A few habits help.
- Declare everything. Tell the insurer how often the property is let and to whom.
- Keep records. Certificates, inventories, photographs and cleaning logs help if you claim.
- Update when things change. If you add a bedroom, change use or move from long lets to short lets, tell your insurer.
- Review every year. Rebuild costs and rules change.
How we handle it
At Corporate Stays we check that each property we manage has the right cover for how it is let, and we keep compliance records on file so owners are not left guessing. If you would like to know what your property could earn and what it needs to be let properly, you can get a free income estimate or message us on WhatsApp.
Frequently asked questions
Does standard landlord insurance cover Airbnb guests?
Often not. Standard landlord policies usually assume one household on a long tenancy. If you tell the insurer the property is let to paying guests, the policy may not respond, and if you do not tell them, a claim can be declined. Always confirm in writing that short lets are covered.
How much public liability cover do I need for a short let?
One insurance broker’s guide describes £2 million as the practical floor and £5 million as what many letting agencies ask to see. Check what your lease, your platform and any manager require.
How much does short-let insurance cost?
The same broker’s guide suggests most owners pay roughly £300 to £1,500 a year, depending on rebuild cost, location, guest capacity and features. Quotes vary, so compare cover as well as price.
Does Airbnb's AirCover replace insurance?
No. Airbnb’s host protections are not a substitute for your own insurance, and they have conditions and limits. Read the terms and keep your own policy in place.
Do I need insurance for a corporate let of 90 nights or more?
Yes, and you still need to tell the insurer how the property is used. Longer corporate stays are usually furnished and serviced, which is different from a standard tenancy, so confirm the policy covers it.
This guide is general information, not insurance, legal or financial advice. Cover limits and prices vary by insurer and property, and the figures quoted come from a broker’s guide. Speak to a regulated insurance broker about your own situation. Last reviewed October 2026.
