The UK’s serviced accommodation sector is rapidly expanding, driven by the popularity of platforms like Airbnb. However, this evolving market demands the right insurance. Standard home insurance often falls short, leaving you vulnerable. Brunel Insurance for People, as Your Personal Insurance Broker, provides tailored insurance solutions for this dynamic sector.
The Rise of Serviced Accommodation in the UK
The serviced accommodation sector in the UK saw a 12% expansion in 2023, with London properties potentially yielding 30% higher income than long-term lets. The total supply of short-term rental properties in the UK exceeded 471,000 by September 2024, indicating substantial growth. This surge is fuelled by remote working trends and a preference for personalised, home-like stays. Major cities like Edinburgh, London, and Manchester are leading this growth, alongside popular tourist destinations.
Standard home insurance policies typically exclude commercial activities like short-term letting due to the increased risks associated with frequent guest turnover. Relying on standard home insurance could lead to declined claims and policies becoming invalid. Common exclusions relevant to serviced accommodation include property damage by guests, theft without forced entry, liability for guest injuries, and loss of rental income. Using standard home insurance for commercial letting can even invalidate your entire policy.
Understanding the Specific Risks of Serviced Accommodation
Operating serviced accommodation exposes owners to risks like property damage by guests (accidental or malicious), liability claims for guest injuries, theft and vandalism, and loss of rental income due to insured events. Legal disputes with guests and potential pet damage are also considerations.
Introducing Specialist Serviced Accommodation Insurance
Specialist serviced accommodation insurance is designed for short-term rentals (under six months) and provides tailored protection beyond standard landlord insurance. Key coverage areas typically include public liability insurance, buildings and contents insurance (including damage by guests), loss of rental income/business interruption insurance. Optional covers can include theft by guests, malicious damage, legal expenses, and home emergency.
While platforms like Airbnb offer some host protection (e.g., AirCover), this is not a substitute for comprehensive insurance. Airbnb explicitly advises hosts to obtain their own insurance. Platform coverage has limitations in coverage amounts, specific exclusions (e.g., wear and tear, natural disasters, theft of host’s belongings), and may not be regulated as insurance. It primarily focuses on guest-related issues during a stay.
Why Choose Brunel Insurance for Your Serviced Accommodation Needs
Brunel Insurance for People offers specialist, tailored insurance solutions for the serviced accommodation sector. Our experienced team provides customer-focused service, understanding your unique needs and risks. We offer customised policies with comprehensive cover, cost-effective solutions, and responsive UK-based support .
Protect your serviced accommodation investment with tailored insurance from Brunel Insurance for People. Call us on 01934 643 400 for a no-obligation quotation or for an online quote CLICK HERE
As the UK serviced accommodation market grows, specialist insurance is essential. Standard home insurance is inadequate for the risks involved in short-term rentals. Brunel Insurance for People provides the expertise and tailored solutions to safeguard your investment and offer peace of mind in this thriving market .
