Accommodation Insurance

All rented accommodation – from guest houses to hotels – will need insurance of some sort. Fortunately several UK companies specialise in insurance for accommodation providers.

The most difficult time of year to find accommodation insurance at a reasonable price is during the winter months. It’s then that rented properties, particularly holiday homes, are likely to be empty for extended periods of time – therefore more vulnerable to the effect of violent weather and undetected problems like electrical faults and water leakages. Does your property need buildings cover, contents cover, or both?

Buildings cover:

Of course this will vary from one policy to the next. Full accidental buildings cover ensures peace of mind, though, as you’ll be covered against any costs incurred for the repair of damage suffered by your property – whether accidental or malicious. If your land includes more than one building, and/or some walls etc, all should be included within the accidental buildings insurance for accommodation providers.

Contents cover:

The most comprehensive option is full accidental contents cover, which is fairly self explanatory! Note that it also includes damage caused by a tenant and theft, even without forcible entry.

From the list below, determine your priorities - many of them will come as standard but check your policy provides the necessary cover. Clarify the excess on your accommodation insurance policy – it varies considerably from under 50 pounds to well over one thousand.

• Theft (or damage caused by an attempted burglary)
• Natural causes – the weather (storms, floods, earthquakes), fire etc
• Landslide, subsidence
• Human damage – to the business or property as a result of vandalism, violence, protests etc
• Escaped water damage (burst pipes, tanks, apparatus etc)
• Oil damage
• Falling lampposts, telegraph poles, or falling trees.

Business interruption cover:

If you are unable to offer the usual service due to illness, damage, or other unforeseen circumstances, this part of your accommodation insurance will protect your business against any loss of income.


Public liability insurance:

An essential requirement for accommodation providers; Public liability insurance will protect your property and your business against the costs of any legal action from employees or guests.