If you rent out a property through Airbnb, Booking.com or another short-term rental platform, having the right insurance is an important part of protecting your investment.
Standard residential landlord or home insurance is not necessarily designed for properties occupied by a succession of short-term paying guests. In some cases, operating a short-term let without telling your insurer could also affect whether a future claim is covered.
For London property owners, the safest approach is therefore to arrange insurance specifically suitable for short-term or holiday letting and make sure the insurer understands exactly how the property is being used.
This guide explains the main types of insurance London hosts should consider, what Airbnb’s AirCover does and does not provide, and what to check before accepting your first booking.
Do You Need Special Insurance for Airbnb in London?
In most cases, you should have insurance specifically suitable for short-term letting.
The UK Government’s current guidance for self-catering holiday accommodation in England says operators should have:
- dedicated holiday-let insurance;
- public liability cover; and
- buildings and contents cover suitable for short-term letting.
This is particularly important because ordinary residential insurance policies may have restrictions concerning paying guests, holiday letting or commercial use of the property.
Before starting short-term letting, property owners should therefore tell their insurer how the property will be used and obtain confirmation that short-term paying guests are covered.
What Insurance Should a Short-Term Rental Property Have?
There isn’t one universal policy that is suitable for every property. Coverage will depend on whether you own a flat or house, whether the property is leasehold, how frequently it is rented and what is included within the building’s existing insurance.
However, there are several important types of cover to consider.
1. Buildings Insurance
Buildings insurance protects the physical structure of the property against insured risks such as fire, flooding, storms and other major damage.
For leasehold flats in London, buildings insurance is frequently arranged by the freeholder or managing agent through a block insurance policy.
That does not necessarily mean short-term letting is automatically covered.
If your property is leasehold, check:
- whether the block insurance permits short-term or holiday letting;
- whether there are restrictions on commercial use;
- whether individual owners need additional insurance; and
- whether the insurer must be notified about short-term occupation.
The lease itself should also be checked separately, as insurance approval does not override restrictions contained within a lease.
2. Contents Insurance
A furnished Airbnb can contain thousands of pounds worth of furniture, appliances and household equipment.
Contents insurance can protect items including:
- furniture;
- televisions and electronics;
- kitchen appliances;
- beds and mattresses;
- curtains and furnishings; and
- other equipment belonging to the property owner.
The policy should specifically allow the property to be occupied by short-term paying guests.
You should also check whether accidental and malicious damage caused by guests is covered, as exclusions and limits can vary considerably between policies.
3. Public Liability Insurance
Public liability insurance is particularly important for short-term accommodation.
It can provide protection where a guest or another person suffers an injury or property damage and the property owner is found legally liable.
For example, a guest could fall on a damaged staircase or suffer an injury caused by an unsafe fixture.
Claims involving serious injuries can potentially be substantial, making the liability limit an important consideration when comparing policies.
UK Government guidance specifically recommends public liability cover for self-catering holiday accommodation. (GOV.UK)
4. Accidental Damage Cover
Even carefully vetted guests can accidentally damage a property.
Common incidents include:
- broken furniture;
- damaged televisions;
- stained carpets;
- damaged worktops;
- broken glass;
- damaged appliances; and
- water damage caused by guest error.
When comparing insurance, check whether accidental damage by paying guests is included automatically or needs to be purchased separately.
5. Malicious Damage
Accidental damage and deliberate damage are not necessarily treated in the same way by insurers.
A specialist short-term-let policy may offer protection against malicious damage caused by guests, although limits, excesses and exclusions can apply.
Owners of higher-value London properties should pay particular attention to the maximum amount an insurer will pay for this type of claim.
6. Loss of Rental Income
A major insurance claim can leave a property unavailable for weeks or even months.
For example, significant fire or water damage could make an apartment temporarily uninhabitable.
Loss-of-rent or business-interruption cover may compensate the owner for qualifying rental income lost while insured repairs are completed.
Check carefully how the insurer calculates lost income and the maximum period for which compensation is available.
Does Airbnb Provide Insurance?
Airbnb’s AirCover for Hosts provides several protections for qualifying Airbnb bookings.
As of 2026, AirCover includes up to US$3 million of Host Damage Protection and US$1 million of Host Liability Insurance.
Host Liability Insurance can cover a host’s legal liability for certain bodily injuries or property damage suffered by guests or third parties during an Airbnb stay. (
However, there is an important distinction.
AirCover should not be considered a replacement for appropriate property insurance.
Airbnb itself states that AirCover does not replace homeowners’, renters’ or adequate liability insurance and recommends that hosts review their own insurance arrangements.
Host Damage Protection is also not an insurance policy.
For this reason, London property owners should generally regard platform protection as an additional layer of protection rather than their primary insurance strategy.
What About Bookings Outside Airbnb?
This is another reason why relying exclusively on Airbnb protection can create gaps.
A professionally managed property may receive reservations through several channels, including:
- Airbnb;
- Booking.com;
- direct bookings;
- corporate accommodation;
- relocation bookings; and
- other short-term rental platforms.
Airbnb’s Host Liability Insurance applies to qualifying stays booked through Airbnb’s platform. (Airbnb)
A specialist short-term-let insurance policy can therefore be particularly important for owners using a multi-channel distribution strategy.
Short-Term Let Insurance vs Standard Landlord Insurance
Traditional landlord insurance is generally designed around longer residential tenancies rather than frequently changing short-term guests.
Since 1 May 2026, England’s tenancy system has also changed substantially: existing assured shorthold tenancies became assured periodic tenancies, and new ASTs can no longer be created. Holiday lets remain outside this assured tenancy regime. (GOV.UK)
The insurance requirements and risk profile of the two models can therefore be quite different.
Policy wording varies significantly between insurers, so owners should never assume a particular risk is covered simply because a policy is marketed as landlord or holiday-let insurance.
Insurance Considerations for Leasehold Properties
A large proportion of London’s short-term rental market consists of leasehold apartments.
These properties require additional checks.
The freeholder may already maintain buildings insurance for the entire building, but the owner may still need separate contents, liability and short-term-let cover.
You should also check whether:
- the lease permits short-term letting;
- the building insurance allows short-term guests;
- the mortgage lender permits short-term letting; and
- the insurer has been correctly informed about the property’s use.
These are separate issues. Having appropriate insurance does not automatically mean that short-term letting is permitted under the lease or mortgage.
What Should You Tell Your Insurer?
Accuracy is important when arranging insurance.
Explain that the property will be offered as furnished short-term accommodation and tell the insurer how bookings are generated.
Relevant information may include:
- property type;
- location;
- approximate property value;
- estimated contents value;
- maximum number of guests;
- whether the property is your primary residence or an investment property;
- whether bookings come through multiple platforms;
- whether direct bookings are accepted;
- whether a professional management company operates the property; and
- whether the property may remain vacant between bookings.
Giving the insurer an accurate picture of how the property operates helps ensure that the policy you purchase is actually appropriate for the risk.
Questions to Ask Before Buying Short-Term Let Insurance
Before purchasing or renewing a policy, consider asking the insurer or broker:
- Does the policy explicitly cover Airbnb and other short-term paying guests?
- Are direct bookings covered?
- Does it include public liability insurance?
- What is the liability limit?
- Are the building and contents covered?
- Is accidental guest damage included?
- Is malicious guest damage covered?
- Is theft by guests covered?
- Does the policy cover escape of water?
- Does it cover loss of rental income following an insured event?
- Are there maximum vacancy periods?
- Are there minimum security requirements?
- Are there restrictions on the number or type of guests?
- What excess applies to each type of claim?
- Does the policy require particular guest-vetting procedures?
It is worth obtaining answers in writing and keeping your insurance documents together with other property compliance records.
Reducing Insurance Risk
Insurance is only one part of managing property risk.
Good operational procedures can reduce both the likelihood and severity of claims.
At StayinLondon, professional property management can include measures such as guest vetting, property inspections, maintenance coordination and rapid responses to reported issues.
Regular inspections can identify problems such as leaks, damaged furniture, loose fittings or electrical issues before they become significantly more expensive.
Guest screening is equally important. Identifying higher-risk reservations before check-in can help reduce the probability of parties, overcrowding and serious property damage.
Is Airbnb Insurance Enough?
For most professional hosts, relying solely on platform protection is not the preferred approach.
Airbnb provides valuable protection for qualifying reservations, but Airbnb itself makes clear that AirCover is not a substitute for appropriate personal insurance.
A more robust approach is to combine:
specialist short-term-let insurance + appropriate liability protection + platform protection + professional risk management.
This provides several layers of protection rather than depending entirely on one platform’s claims process.
Insurance and Professional Airbnb Management
Managing insurance risk becomes increasingly important as the value of the property and rental income increase.
A professional Airbnb management company can help owners reduce operational risks by ensuring the property is properly prepared, guests are screened, maintenance issues are addressed promptly and incidents are documented.
However, property management does not replace the owner’s responsibility to arrange appropriate insurance.
Owners should always obtain professional insurance advice based on their individual property and circumstances.
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