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Holiday let insurance: what the law requires in each UK nation

Do I need insurance for a holiday let or short-term let?

In Scotland, yes: every short-term let licence has mandatory conditions that need buildings and public liability insurance. In England, Wales and Northern Ireland we found no general law that makes it compulsory, but official guidance (GOV.UK, Tourism NI) says you should have it. Employers’ liability insurance is compulsory everywhere if you employ staff, unless an exemption applies.

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In short

From legislation.gov.uk, gov.scot, GOV.UK, GOV.WALES and Tourism NI. Not legal, insurance or financial advice.

Legally required or just advisable? By nation

NationRequired by law nowOfficial guidance saysComing next
ScotlandYes, for every licensed short-term let: buildings insurance for the licence term and public liability insurance for each let (mandatory licence conditions).Buildings cover must cover the short-term let activity (gov.scot).None found.
EnglandNo general requirement that we found. Employers’ liability insurance if you employ staff.GOV.UK says you should have holiday let insurance, public liability cover, and buildings and contents cover suitable for short-term letting.National short-term let registration is expected in March 2027 (GOV.UK); we found no insurance condition announced for it.
WalesNo general requirement that we found. Employers’ liability insurance if you employ staff.No current GOV.WALES insurance guidance for hosts found.Licensing scheme insurance standard (public liability), legal default start March 2030.
Northern IrelandNo. Tourism NI says public liability is not required by law or for certification. Employers’ liability insurance if you employ staff.Tourism NI recommends public liability insurance (usually £2m to £5m) on top of house insurance.None found.

Scotland: insurance is a licence condition

Schedule 3 to the Short-term Lets Licensing Order 2022 sets mandatory conditions for every short-term let licence. Paragraph 15 says:

“The holder of the licence must ensure that there is in place for the premises— (a) valid buildings insurance for the duration of the licence, and (b) valid public liability insurance for the duration of each short-term let agreement.”

The Scottish Government’s guidance for hosts (paragraphs 2.63 to 2.65) adds that:

Your council decides what evidence it wants with the application (guidance paragraph 2.24). The condition does not set a minimum amount of cover. See our Scotland licence guide and checklist and the licence renewal checker; insurance has to stay valid for the whole licence.

We found no general law in England that makes holiday let insurance compulsory. GOV.UK’s self-catering holiday home guidance (insurance section updated 7 Apr 2026) says you should have:

The same page says you must follow the fire, gas and electrical safety rules, so the difference in wording matters. See holiday let fire safety in England and planning permission.

Wales: nothing general yet, a licensing standard later

We found no current Welsh law that makes holiday let insurance compulsory (apart from employers’ liability, below), and no GOV.WALES insurance guidance for hosts. That will change under the Development of Tourism and Regulation of Visitor Accommodation (Wales) Act 2026: section 13 sets an insurance standard for licensed visitor accommodation, which is “a public liability insurance policy” covering liabilities to third parties. Welsh Ministers can set what it must cover and how much in regulations. GOV.WALES says the legal default is that the licensing scheme starts in March 2030, with consultation on the regulations first. Separately, you must register with the Welsh Revenue Authority by 31 March 2027 (GOV.WALES). See our guide to the Wales licensing Act for who will need a licence and the other standards.

Tourism NI says public liability insurance “is not required by law for most businesses, it is not included in the Tourism Order 1992 and not part of the inspection criteria”. It still recommends it for all categories of accommodation, including self-catering, taken out in addition to existing house insurance, and says cover is usually for £2 million to £5 million. That page was last updated 24 Aug 2020. See our Tourism NI certificate guide.

Employers’ liability: compulsory if you employ staff

In England, Scotland and Wales, GOV.UK says you must get employers’ liability insurance as soon as you become an employer, covering at least £5 million from an authorised insurer, and you can be fined £2,500 for every day you are not properly insured. There are exemptions, for example if you only employ close family members. The HSE guide to the 1969 Act explains who counts and the exemptions. In Northern Ireland, Tourism NI says employers’ liability insurance is required by law once you employ someone. Whether a cleaner or housekeeper is your employee depends on the facts, so check before you rely on not needing it.

Your home insurance and paying guests

Do not assume an ordinary home policy covers paying guests: check the wording and tell your insurer before your first booking. The Association of British Insurers says that if you do not let your insurer know about changes, this could affect your cover. GOV.UK asks for cover “suitable for short-term letting”, and in Scotland the buildings insurance must cover the short-term let activity. Not verified We have not found an official source saying that every standard home policy excludes paying guests, so we don’t say that here.

Tell your mortgage lender (and check your lease)

Tourism NI’s guidance says residential mortgages generally prohibit sub-letting without the lender’s consent, that a change of terms could mean a higher rate, a penalty payment or even an urgent repayment demand, and that many buy-to-let mortgages also prohibit short-term letting. It also says to check your lease or title deeds and any management company rules. That guidance is written for Northern Ireland, but reading your mortgage offer and asking your lender is a sensible check anywhere. In Scotland, if you do not own the premises you need the owner’s permission to apply for a licence (gov.scot guidance, paragraph 2.17). Buying a let? Use the buyer due-diligence checker.

Platform host protection is not the same as your own insurance

Airbnb’s own pages draw the line:

So check what covers bookings you take directly or through other platforms. Not verified We found no official statement on whether a platform’s liability cover meets the Scottish licence condition; ask your council if you plan to rely on it.

What to ask your insurer

General categories only, taken from the official guidance above. Policies differ, so read the wording.

Rules in your council

Each council page has the local licensing, planning, visitor levy and fee rules, key dates and official sources, plus a free email alert when they change.

England: 35 council pages
Scotland: 31 council pages
Wales: 22 council pages

Common questions

Is holiday let insurance a legal requirement in the UK?

Only in Scotland, in general. Every Scottish short-term let licence has mandatory conditions that need valid buildings insurance for the length of the licence and valid public liability insurance for each let. In England, Wales and Northern Ireland we found no general law that makes holiday let insurance compulsory, but official guidance says you should have cover suitable for short-term letting. Employers' liability insurance is a legal requirement in every nation if you employ staff, unless an exemption applies.

What insurance do I need for a short-term let licence in Scotland?

Valid buildings insurance for the duration of the licence and valid public liability insurance for the duration of each short-term let agreement (Schedule 3, paragraph 15 of the Short-term Lets Licensing Order 2022). Scottish Government guidance says the buildings insurance must cover the short-term let activity, but it can be your own policy, a shared policy for the building (for example an apartment block) or insurance taken out by the owner. Your council sets the evidence it wants with the application.

Will my normal home insurance cover paying guests?

Do not assume it does. Check your policy wording and tell your insurer before your first guest. GOV.UK says hosts in England should have buildings and contents cover suitable for short-term letting, and the Association of British Insurers says not telling your insurer about changes could affect your cover. In Scotland, the buildings insurance must cover the short-term let activity.

Is Airbnb AirCover the same as insurance?

Partly. Airbnb says the Host liability insurance part of AirCover for Hosts is an insurance policy (for UK hosts, underwritten by Zurich), with cover shown as $1 million USD. But Airbnb also says Host damage protection is not insurance or a financial service, and that AirCover is not a substitute for personal insurance. It protects you while you are hosting an Airbnb stay, so check what covers bookings you take elsewhere.

Do I need employers' liability insurance for my cleaner or housekeeper?

If they are your employee, usually yes. GOV.UK says you must get employers' liability insurance as soon as you become an employer, covering at least £5 million from an authorised insurer, and you can be fined £2,500 for every day you are not properly insured. There are exemptions, for example if you only employ close family members. In Northern Ireland, Tourism NI says employers' liability insurance is required by law once you employ someone. Whether someone counts as your employee depends on the facts, so check the HSE guide or ask an insurer or adviser.

Do I need to tell my mortgage lender I am running a holiday let?

Check your mortgage terms before you let. Tourism NI's guidance says residential mortgages generally prohibit sub-letting without the lender's consent, that a change could mean a higher rate, a penalty or a repayment demand, and that many buy-to-let mortgages also prohibit short-term letting. It also says to check your lease or title deeds and any management company rules. That guidance is written for Northern Ireland, but reading your mortgage offer and asking your lender is a sensible check anywhere in the UK.

Is public liability insurance required for holiday lets in Wales?

Not under a general law yet, as far as we found. The Development of Tourism and Regulation of Visitor Accommodation (Wales) Act 2026 sets an insurance standard for its visitor accommodation licensing scheme: a public liability insurance policy covering liabilities to third parties. GOV.WALES says the legal default is that the licensing scheme starts in March 2030, with consultation on the regulations first. Registration with the Welsh Revenue Authority by 31 March 2027 is a separate requirement.

Does Tourism NI require insurance for a certificate in Northern Ireland?

No. Tourism NI says public liability insurance is not required by law for most businesses, is not included in the Tourism (Northern Ireland) Order 1992 and is not part of the inspection criteria. It still recommends public liability insurance for every category of accommodation, including self-catering, on top of your existing house insurance.

How much public liability cover do I need?

The Scottish licence condition does not set a minimum amount. Tourism NI says cover is usually for £2 million to £5 million. The Welsh Act lets Welsh Ministers set the extent of cover in regulations later. Ask your insurer or a broker what suits your let.

Related: Scotland licence guide · England fire safety · Wales fire safety · Scotland fire safety · Tourism NI certificate · Holiday let tax after FHL · All guides

Official sources

Show all official sources (14)

Not legal, insurance or financial advice. Checked 29 Oct 2026. We are not an insurer or broker and do not recommend any provider. Ask your insurer, broker, lender or council about your own let. The UK Short-Let Rules team

Get free rule-change alerts for your council

Pick your council. We email you when its short-let rules change (licensing, planning, levy, fees), plus one short weekly "what changed" email. Free. Unsubscribe any time.

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