Short-term letting through platforms such as Airbnb and similar booking sites has grown significantly across the UK. For many landlords, it offers a flexible way to generate income from a property that might otherwise sit empty between tenancies. However, using a property for short-term accommodation can change how insurers view the risk associated with that property. If the insurance position is not properly understood, landlords may encounter difficulties if they ever need to make a claim.

Below are several important points landlords should consider when using, or thinking about using, their property for short-term letting.

Understand how insurers classify short-term letting

Many insurance policies are written on the assumption that a property is occupied either by the owner or by long-term tenants under an assured shorthold tenancy. Short-term lets operate very differently. Guests may stay for only a few days, and there is typically a higher turnover of occupants throughout the year.

From an insurer’s perspective, this can increase certain risks. Properties may be unoccupied more frequently between bookings, and the occupants may be unfamiliar with the property and its systems. Because of this, insurers often treat short-term letting differently to standard residential or buy-to-let arrangements.

Disclosure is critical

Insurance contracts rely on the principle of full and accurate disclosure. This means insurers must be informed of any material changes to how a property is used. Moving from long-term letting to short-term accommodation is generally considered such a change.

If a property is listed on a short-term letting platform without the insurer being aware, it can create complications if a claim arises. During the claims process, insurers will often review how the property was being used at the time of the incident. If the usage differs from what was originally declared, the claim could be subject to further investigation and potentially challenged.

For landlords, the safest approach is simple: inform the insurer early and ensure the policy accurately reflects the property’s use.

Guest-related damage may be treated differently

Another point landlords sometimes overlook is how damage caused by paying guests is handled. Standard landlord policies are primarily designed to cover insured perils such as fire, flood, storm damage or escape of water.

Damage caused directly by guests, whether accidental or deliberate, may not always fall within the standard scope of cover. While some short-term letting platforms offer host protection schemes, these are not always equivalent to a comprehensive insurance policy and can include limitations and exclusions.

Landlords who regularly use short-term letting platforms may wish to explore insurance products specifically designed for holiday lets or short-term accommodation.

Liability risks increase with guest turnover

Short-term letting also introduces a different liability profile. When guests are paying to stay at a property, the landlord effectively becomes responsible for providing a safe environment for visitors.

If a guest suffers an injury due to a fault within the property – for example a loose handrail, faulty appliance or unsafe flooring – they may pursue a liability claim. Ensuring the property is properly maintained, inspected regularly and covered by appropriate liability insurance is therefore essential.

Maintenance and reporting challenges

Short-term lets can also create practical challenges around maintenance and reporting. With frequent guest turnover, minor issues may not always be reported immediately. A small escape of water, for example, might go unnoticed until it has already caused significant damage.

Regular inspections, clear instructions for guests and reliable property management arrangements can help reduce the risk of small issues escalating into major claims.

Support when claims occur

Even with the right precautions, property damage can still occur. When it does, navigating the insurance claims process can be time-consuming and complex, particularly where multiple parties are involved.

Specialist loss assessors such as Aspray support property owners by managing the claim on their behalf. Acting for the policyholder, they help present the claim to the insurer, coordinate the necessary reinstatement works and guide landlords through the process from initial damage through to settlement and repair. For landlords facing the disruption of a major property loss, having experienced support can make the process far easier to manage.