If you own a holiday home in Wales, you’ll want to protect it properly — whether it’s a cosy cottage in the Brecon Beacons or a seaside apartment in Tenby. Holiday let insurance is an essential part of running a successful holiday rental business, giving you peace of mind that your property, contents, and guests are all covered should anything unexpected happen.
From public liability cover to protection for lost income, holiday letting insurance policies are designed specifically for furnished properties that are let out to paying guests.
In this guide, we’ll explain what holiday let insurance is, why you need it, and what to look for when choosing the right policy for your Welsh property…
What is Holiday Let Insurance?
Holiday let insurance is specialist cover for properties that are rented out on a short-term basis to guests.
Standard home insurance doesn’t usually cover the additional risks that come with letting your property to paying visitors — like accidental damage, cancellations, or guest injury.
A comprehensive policy should protect your building, furnishings, and your liability as a host. It can also help you recover lost income if something unexpected — such as storm damage or flooding — means you can’t take bookings for a while.
Why You Need Holiday Let Insurance in Wales
South Wales attracts visitors all year round, from families heading to the beaches of the Gower to couples exploring the valleys and vibrant cities. With a steady flow of guests, it’s important to be prepared for the unexpected.
Having furnished holiday let insurance helps protect your investment and ensures you’re covered in situations such as:
- A guest accidentally damaging your property or contents
- Storms, flooding, or fire causing damage to your building
- Loss of rental income while repairs are made
- Accidents or injuries involving guests on your property
Without the right cover in place, you could be left personally liable for costly repairs or compensation claims.
What Should Holiday Let Insurance Include?
Every policy is different, but a good holiday letting insurance package typically includes:
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Buildings and Contents Insurance
Covers the cost of repairing or rebuilding your property if it’s damaged by fire, flooding, or other insured events. It should also protect furniture, appliances, and fixtures used by guests.
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Holiday Letting Public Liability Insurance
This is one of the most important parts of your cover. Public liability insurance protects you if a guest or visitor is injured, or if their belongings are damaged, while staying at your property. Most experts recommend at least £2 million of cover, though many policies offer more.
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Loss of Income Cover
If your property becomes uninhabitable due to an insured event (like storm damage or a burst pipe), this can compensate you for lost rental income while repairs are carried out.
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Employer’s Liability (if applicable)
If you employ cleaners, gardeners, or maintenance staff, you’re legally required to have employer’s liability insurance. This protects you if an employee is injured or becomes ill while working for you.
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Accidental Damage Cover
Even careful guests can have accidents. This cover protects against mishaps like spilled wine on carpets or broken furniture.
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Legal Expenses
Helps with the cost of legal disputes, such as recovering costs from a guest who causes damage.
When you’re assessing policies, don’t forget to cross‑check with our article Complete Guide to Holiday Let Mortgages in Wales if you have a mortgage on the property – there are linkages between your mortgage terms and the insurance cover required.
How to Find a Holiday Let Insurance Provider
Once you understand the type of cover you need, the next step is finding the right insurer. Not all standard home insurance policies include protection for holiday lets, so it’s important to look for a specialist provider.
Start by researching insurers who focus on holiday let policies – these companies are more familiar with the specific risks that come with short-term rentals.
You can easily compare quotes online or check independent review sites to see how different providers handle claims and customer support.
Always take time to read the small print carefully so you know exactly what’s included, any exclusions, and what you’ll need to declare about your property and bookings.
Tips for Choosing the Right Holiday Let Insurance
When comparing policies, make sure you:
- Use a specialist provider that understands holiday lets and their unique risks.
- Check the exclusions — for example, damage caused by pets or general wear and tear
- Make sure your rebuild cost (not just market value) is accurate
- Consider local risks, such as flooding or coastal weather conditions
- Review your cover regularly as your property or income changes
If you’re not sure, our expert team at Coast and Country Cottages can give you free advice! Just get in touch.
Speak to Our Holiday Letting Experts
Do You Need Different Insurance for a Furnished Holiday Let?
Yes — if you let your property as a short-term rental, you’ll almost always need specialist holiday let insurance rather than standard home or landlord cover.
Until recently, HMRC recognised certain properties as Furnished Holiday Lets (FHLs) if they met specific letting and availability criteria. However, the FHL tax regime was abolished in April 2025, meaning that for tax purposes, these properties are now treated the same as standard residential lets.
Here’s what that means for you:
- The former tax advantages of FHL status, such as claiming capital allowances, no longer apply.
- The insurance requirements have not changed — you still need appropriate holiday letting cover if you rent your property to paying guests.
- You should continue to ensure your policy includes cover for buildings, contents, loss of income, and public liability.
- If you’ve started offering longer-term stays (over 31 days), you may need to update your policy to reflect the change in use.
So even though the FHL tax regime has ended, the need for comprehensive furnished holiday let insurance remains as important as ever, helping you stay protected from the risks that come with short-term letting.
For more on the regulatory side of things, don’t miss our guide on Holiday Let Tax in Wales.
Note: This information is for general guidance only. Always check the latest HMRC guidance or speak to a qualified tax adviser for personalised advice about your property and income.
Thinking About Letting Your Property?
If you’re considering letting your property in South Wales, Coast and Country Holidays can help. From expert advice on holiday let insurance to full property management and marketing support, we make it simple and stress-free to start your holiday letting journey.
Our helpful guide on Running a Successful Holiday Let Business in Wales is a great start for those looking to thrive in the holiday let business.
👉 Get in touch today to find out how we can help you make the most of your South Wales holiday home.
Protecting Your Holiday Let
Owning a holiday let in South Wales can be hugely rewarding — from welcoming guests to sharing the beauty of the Welsh coast and countryside. But to protect your investment, make sure you have the right holiday let insurance in place.
With comprehensive cover, including holiday letting public liability insurance and furnished holiday let insurance, you can relax knowing your property, guests, and income are protected — leaving you free to focus on providing a memorable experience for everyone who stays.
For more information about letting your cottage with us, complete the form below to request contact from our team. You’ll also receive a copy of our FREE Owner Guide.
