In an ever-changing world, it’s important to adapt to survive – and thrive! According to government figures, over 60% of farms have diversified – moving away from traditional activities to create extra forms of income. One of the most popular, and successful, forms of diversification is converting farm buildings into holiday accommodation. If you’ve considered this, or already have short-term lets on your site, do you know what insurance you’ll need?
Your existing farm insurance policy might cover a holiday-let, but it’s not safe to assume that’s the case. Buy-to-let insurance won’t work here either, as this type of policy is designed for rentals with an Assured Shorthold Tenancy agreement in place.
So what policy do you need? There are a few options depending on the type of accommodation you are letting:
Serviced accommodation combines hotel services, like daily housekeeping and laundry, with more traditional holiday-let amenities like cooking and washing facilities. They are usually available for short or longer-term bookings, rather than in blocks of three-days or one week at a time.
We can offer a serviced accommodation insurance policy which is tailored to this specific model of short-term letting. Key covers include buildings, contents, business interruption, public liability and employers’ liability. Add-ons such as legal expenses can also be arranged.
These are residential properties that are commercially let but with no added servicing. They are the most traditional kind of self-catering holiday homes. We provide a specific holiday home insurance policy similar to serviced accommodation cover, except it doesn’t include business interruption cover. Instead, our policy includes loss of rent/alternative accommodation cover. This means you won’t lose out financially if your holiday home becomes uninhabitable due to an insured event.
Airbnb is a simple way to advertise your accommodation. It’s particularly useful if you plan on having guests throughout the year, rather than just at peak holiday seasons. However, the nature of Airbnb rentals means they provide a unique insurance challenge and therefore require a unique insurance product. We can arrange a bespoke insurance package for different types of Airbnb rentals, including cover for individual rooms in your home, holiday accommodation combined with longer-term lets, year-round holiday accommodation and properties leased on rent-to-rent terms.
Going without the appropriate cover on your holiday properties is just not worth the risk – in the event of a claim, you may find that the damage, loss or injury won’t be covered, either because the policy won’t cover it, or because the insurer didn’t understand the situation from the start!
The best way to avoid any nasty surprises, and to safeguard your investment, is to consult an independent insurance broker with plenty of expertise in farm and short-term let insurance. Our team has experience in dealing with all types of farms and will ask appropriate questions in order to fully understand the risk before advising accordingly.
Get in touch today by calling 01603 218000 or click here to find out more.