Uswitch home insurance experts highlight the potential insurance risks of renting out a room or full home , and the importance of having the right cover.
As demand for short-term lets peaks over the summer months, more homeowners living in tourist hotspots are cashing in by renting out their spare rooms (or entire home). But Uswitch home insurance experts are warning homeowners about the overlooked risk of renting a room out: without the right home insurance policy in place, you could invalidate your cover if something goes wrong.
In 2025, the UK saw nearly 101 million guest nights spent in short-term lets, 14% (14,143,560) of which took place in August alone. Those offering home rentals may not realise that standard home insurance is designed for owner-occupiers, not paid guests, and hosting without informing your insurer, or not having a specialist short-term rental policy in place, could leave you both out of pocket and uninsured.
If you rent out a room or your whole home to guests - even for a single weekend - your insurer may not cover you for accidental damage, theft or injury caused by a guest. In some cases, it could even cancel your policy altogether if you didn't declare that you were hosting.
While rental platforms like Airbnb offer their own protection, Uswitch experts say this isn’t a substitute for home insurance, and it’s important to ensure you have appropriate cover. Airbnb's AirCover for Hosts offers up to £2,234,250 in host damage protection and £744,750 in host liability cover, but it won't cover events such as lost booking income or high-value items.
Top tips for homeowners renting out rooms or properties this summer:
Always inform your insurer. This is essential to keep your policy valid.
If you have a mortgage, review it to make sure you are allowed to conduct short-term lets.
Don't rely on a rental platform’s cover alone. While protection like Airbnb’s AirCover is a helpful safety net, it has limitations and gaps that you need to watch out for.
Consider specialist insurance. If your standard home insurance doesn’t cover renting out your home but you still want to do so, dedicated policies,such as holiday let insurance, are available. These can fill the gaps left by your existing insurance.
Uswitch insurance expert, Leoni Moninska, comments: “Renting out a spare room or your home, even if it’s just a short-term rental, could invalidate your home insurance. Most standard policies don’t cover short-term rentals, as they are designed for people living in their own home full-time and the risks associated are different.
“If you’re looking to make additional income through renting out a room or your whole property, you should contact your home insurance provider and inform them, but also look into holiday or short-term let home insurance policies.
“Platforms like Airbnb do offer some protection, but there are limits. Their cover won't replace lost income if a booking falls through, and it may not stretch to your most valuable belongings. Having the right insurance in place helps avoid invalidating your policy and ensures you’re protected if something goes wrong, so you can enjoy the extra income from hosting without the worry."
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