What Insurance Do You Need for an Airbnb Property in Bath?
Insurance is the one area where cutting corners can cost an owner the whole property's value. We see the same mistakes regularly: owners relying on home insurance, relying on AirCover, or holding a policy that doesn't match how the property is actually used.
The short answer: you need a specialist holiday let or short-term let policy. It should include buildings (if you're responsible for them), contents, public liability of at least £2 million, accidental and malicious damage by guests, and loss of income. AirCover is a useful backstop, not a substitute.
Why home and landlord insurance don't work
Standard home insurance assumes you, or your family, live in the property. Landlord insurance assumes a tenant on a tenancy agreement. A short let is neither. It is a commercial use with a new guest every few nights.
If you let the property short-term without telling your insurer, most policies will refuse a claim — and not just claims caused by guests. A burst pipe or a fire can be declined because the property was being used in a way the insurer didn't agree to cover.
What a proper policy should include
| Cover | What it protects | What to look for |
|---|---|---|
| Buildings | The structure, if you own the freehold | Sum insured based on rebuild cost, not market value |
| Contents | Furniture, linen, appliances, décor | Replacement value, including items guests use daily |
| Public liability | Claims from guests or visitors who are injured | At least £2 million; £5 million is common and inexpensive |
| Accidental damage | Spills, breakages, stains | Explicitly extends to paying guests |
| Malicious damage and theft by guests | Deliberate damage, stolen items | Covers theft without forced entry, as guests have keys |
| Loss of income | Bookings lost while the property can't be let after an insured event | Covers cancelled future bookings, not just rent |
| Employers' liability | Staff you employ directly | Only needed if you employ people yourself |
A few other things worth having: cover for keys and lock replacement, escape of water with a reasonable excess, and cover for periods when the property is empty between bookings. Check the "unoccupancy" clause — some policies reduce cover after 30 or 60 days without a guest, which can matter in January.
Is AirCover enough?
No. AirCover for Hosts has two parts, and both have limits.
Host damage protection (up to $3 million). Airbnb states plainly that this is not insurance. To claim, you must first request payment from the guest through Airbnb's Resolution Centre, and submit evidence within 14 days of checkout. Wear and tear and natural events aren't covered. It only applies to Airbnb bookings.
Host liability insurance (up to $1 million). This is genuine insurance, underwritten in the UK by Zurich. It covers you if a guest is injured during an Airbnb stay. But $1 million is lower than most specialist policies, and it has exclusions. It also doesn't apply to bookings from Booking.com, Vrbo or direct guests.
Booking.com and other channels. Booking.com doesn't offer an equivalent to AirCover. If you list on more than one platform, as most well-run properties do, your own policy has to cover every booking.
Think of AirCover as a useful extra layer for Airbnb bookings. Your main protection should be your own policy.
Insurance risks specific to Bath
Listed buildings. Much of central Bath is Grade I or II listed. Repairs have to be done like-for-like, often with Bath stone, lime mortar and specialist trades, and with listed building consent. That makes rebuild costs far higher than for a modern property. Make sure your buildings sum insured reflects a proper rebuild valuation. If you're underinsured, most policies will only pay a proportion of any claim.
Leasehold flats. Most Bath flats are in converted Georgian and Victorian houses, where buildings insurance is arranged by the freeholder under a block policy. The freeholder's insurer needs to know a flat is used for short lets. If they don't, a claim for the whole building could be affected. Check your lease, get written consent, and ask for confirmation that the block policy allows it. You still need your own policy for contents, liability and loss of income.
Flooding near the river. Properties close to the Avon need flood cover checked carefully. The government-backed Flood Re scheme, which keeps flood cover affordable for many homes, is designed for residential council tax properties, so a holiday let on business rates may not benefit from it. If your property is near the river, get flood cover confirmed in writing before you buy a policy.
Tell your insurer everything
Most rejected claims come down to non-disclosure. When you take out a policy, be clear about:
how the property is let, and on which platforms
that it is professionally managed, and by whom
how many guests it sleeps
any hot tub, wood burner or other higher-risk features
any periods it will be empty
If anything changes, tell the insurer before it happens, not after a claim.
Owner checklist
Replace home or landlord insurance with a specialist holiday let policy.
Get a rebuild valuation if the property is listed.
If it's leasehold, confirm the block policy allows short lets.
Check flood cover if you're near the river.
Set public liability at £2–£5 million.
Check the unoccupancy clause.
Keep your policy documents where your management company can find them.
Frequently asked questions
Is insurance a legal requirement for an Airbnb in the UK? Not as such. But your mortgage lender will almost certainly require buildings cover, and a leasehold flat usually has insurance requirements in the lease. Running a short let without proper cover is a serious financial risk.
Does AirCover cover guest injuries? Its host liability insurance covers up to $1 million for injuries during Airbnb stays. It doesn't cover bookings from other platforms.
What happens if I don't tell my insurer I'm letting short-term? They can refuse any claim, including claims unrelated to guests, and may cancel the policy.
Does holiday let insurance cover parties? Most policies cover accidental and malicious damage by guests, but check for exclusions around unauthorised events. Guest screening and clear house rules matter as much as the policy.
How much does holiday let insurance cost? It varies by property, rebuild value and cover. Get quotes from specialist holiday let insurers and compare the cover, not just the price.
How we help
We check every client's insurance at onboarding and screen guests on every booking to reduce the risk of claims in the first place. When something does go wrong, we gather the photos, reports and guest communication insurers ask for. If you own a property in Bath or Bristol, get in touch.
Related reading: Short-term let regulations in England, Holiday let business rates vs council tax and How much can you realistically earn on Airbnb?
This article is general guidance, not insurance advice. Speak to a specialist broker about your property.