Short-Let Insurance: Covering Guest Damage Properly (2026)
Short-Let Insurance: Covering Guest Damage Properly
Usually not. Once you let short-term for payment, that often counts as commercial use.
And commercial use is exactly what many standard policies exclude. When damage happens that can mean no cover at all, after years of premiums.
Hostfully, AirCover for Hosts vs. insuranceIn 60 seconds
Once you let short-term for payment, that often counts as commercial use: which many standard buildings and contents policies exclude.
For a holiday let, a dedicated short-term letting policy is usually the fit.
Typical components are guest-caused damage to furnishings and the property, third-party liability, and depending on scope lost income and cover for the building structure.
The advantage over AirCover: your own policy works across platforms, including bookings through Booking.com, Vrbo or direct.
Insurers decline for the same reasons platforms do: no before-state, missed deadlines, "normal wear and tear".
Insurance plus evidence, not instead of it
The policy covers the financial risk. The evidence decides whether it pays out in the individual case. Only together do they add up to real security.
Why AirCover alone is often not enough is explored in Alternatives to AirCover; how the proof is produced is in Proving damage in a holiday let.
Common mistakes
Dangerous: paid short-term letting often counts as commercial use and is excluded from standard policies.
Even the best policy only pays if you can prove the damage is new and arose during a stay.
AirCover does not apply to Booking.com, Vrbo or direct bookings. Your own policy does.
What to do next
Check your existing policy for whether paid short-term letting is included.
If not, take out a short-term letting policy with the components you need.
Document the condition before every stay: the cover builds on it. Do it with BildProof, about two minutes a room →
When damage occurs, report in time and attach evidence of cost.
Frequently asked questions
Does my normal home or contents insurance cover guest damage?
Usually not. Standard policies often exclude commercial short-term letting, because the property is then no longer purely private. Check your terms and notify your insurer of the use, otherwise you risk no payout at all when damage occurs.
What insurance do I need as a host?
Typically a dedicated short-term-rental or holiday-let policy that covers guest-caused damage, third-party liability and, depending on the scope, lost income. It works across platforms. Unlike AirCover, which only applies to Airbnb bookings.
Do I need insurance if I have AirCover?
If you use several platforms or take direct bookings, yes. AirCover only applies to Airbnb bookings and has exclusions (structure, lost income, and more). Your own policy fills those gaps, but it too requires proof that damage occurred during a stay.
Why would an insurer deny a claim?
For the same reasons a platform does: missing or insufficient proof that the damage is new, missed reporting or deadline requirements, and exclusions like normal wear and tear. A documented condition before the stay is therefore decisive for the insurance case too.
This page gives general information as at the date shown. It does not replace legal advice on an individual case.