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What Insurance do I need for a Serviced Accommodation?

Updated: Oct 30, 2023

If you are wondering what insurance is required to let your property as a Serviced Accommodation, you could be various types of people. You could be a Buy to Let landlord, who has crumbled after hearing the returns people are achieving from turning their Buy to Lets to Serviced Accommodations (SA's) and followed suit, and in which case, you may need to make changes to your policy to allow for SA use.

You may however be an investor interested in purchasing a Serviced Accommodation in the near future, and need to know the required cover. Whoever you are, we have the answers for you... the insurance needed for Serviced Accommodation hosts is as follows:


Building Insurance: This covers the structure of the rental property itself, including walls, roof, floors, and permanent fixtures. It provides protection against damage from events like fire, flooding, storms, vandalism, and subsidence.


Property Damage Cover: This covers damage to the physical structure of the property, including the building, fixtures, and furnishings. It may include protection against events like fire, water damage, vandalism, and natural disasters.


Contents Insurance: This covers the contents of the property, such as furniture, appliances, and other personal property owned by the host and provided for guest use. It may also cover theft or damage to these items.


Property Owners Liability: Protects hosts from legal claims or lawsuits filed by guests or third parties for injuries or property damage that occur on the property. This is essential for incidents like slips, falls, or accidents on the premises.


Loss of Rent Cover: If the property becomes uninhabitable due to a covered event, like fire or water damage, this coverage can reimburse hosts for lost rental income during the repair or restoration period.


Legal Expenses: This covers the legal costs associated with defending against liability claims or lawsuits brought by guests or third parties. It may also include expenses related to eviction proceedings.

Malicious Damage: Protection against damage caused by guests or third parties, such as graffiti or wilful destruction of property.

Natural Disaster Cover: Depending on the location, hosts may choose to include coverage for specific natural disasters like earthquakes, floods, or hurricanes.

It's important to note that serviced accommodation insurance policies can vary, and hosts should carefully review the terms, conditions, and exclusions of their specific policy. The cost of insurance can also vary based on factors such as location, property type, coverage limits, and deductibles. Hosts should work with their insurance provider to tailor their policy to their specific needs and ensure they have adequate protection.

You may be looking at the above list, and wondering why you need all of this cover... so we have presented a list of key insurance risks to Serviced Accommodation landlords:

  • Guests may accidentally or intentionally damage the property, which can result in significant repair costs. Standard homeowner's insurance may not cover such damage, so hosts need specialized short-term rental insurance that includes coverage for guest-caused damage.

  • Hosting guests increases the risk of accidents and injuries on the property. Liability insurance is essential to cover potential lawsuits resulting from guest injuries or damage to their property during their stay.

  • Laws and regulations related to short-term rentals can vary by location and may change over time. Hosts must stay informed and ensure they comply with zoning laws, licensing requirements, and local ordinances.

  • Theft or unauthorized access can be a risk for hosts. Implementing security measures like secure locks, CCTV, and smart home technology can enhance property security.

  • Short-term rentals located in areas prone to natural disasters, such as Subsidence or storm damage, should consider specialized insurance coverage for such events.

To effectively manage these insurance risks, serviced accommodation landlords should invest in appropriate insurance coverage designed for short-term rentals. A good management agent will usually take ID and deposits from guests up front, whilst maintaining a strong set of T's and C's and house rules, to ensure that less issues reach the stage where insurance claims are necessary.


A fundamental question we must ask here, is how do the policies required for Serviced Accommodation compare with the policies required for a Buy to Let property. In truth, the differences are few and far between. The premiums paid by landlords for SA properties are usually a little higher, but the policies are relatively similar. We have written a full article on the Insurance required for Buy to Let landlords in our FAQ's section. Link: https://www.hearnbeaumontproperty.com/post/what-insurance-do-i-need-for-a-buy-to-let


As a Sourcing Agent, our power team is a crucial element of delivering an end to end service for our investors. After years of experience, we have found that the best service providers for property investors, are property investors. With personal experience of investing in property, Christian can see from an investors perspective. In addition, Christian is capable of delivering efficient insurance solutions for property investors, including those tailored to Serviced Accommodation landlords. Christian is offering an exclusive discount for Hearn Beaumont Property customers and readers. Simply get in touch via the details below, and quote the code HB10 for your exclusive discount.



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