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Diversifying into holiday lets? Ensure you’re insured

09 March, 2020
In our ever-changing world, it’s important to adapt to survive - and thrive!

According to government figures, more than 60% of farms have diversified. They have moved away from traditional activities and by using existing assets have created additional 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, have you thought about what your insurance needs will be?

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 insurance 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

Serviced accommodation is accommodation that combines hotel-like services with more traditional holiday-let amenities. Think daily house-keeping but also washing facilities. They tend to be 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.

Holiday homes

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. This is similar to serviced accommodation cover, except it doesn’t include business interruption cover. It does include loss of rent/alternative accommodation cover instead.

Airbnb

Airbnb is a simple way to advertise your accommodation, especially if you plan on having guests throughout the year. However, due to the nature of Airbnb rentals, 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 This can include: cover for individual room, 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. This could be because the policy won’t cover it, or because the insurer didn’t understand the situation from the start!

The best way to to safeguard your investment, is to consult an independent insurance broker with expertise in farm and short-term let insurance. Our team has experience in dealing with all types of farms. This means we’ll ask appropriate questions in order to fully understand the risk, before advising accordingly.

If this could help you, get in touch with AF Insurance by calling 01603 216385 or emailing insurance@theafgroup.co.uk

AF Group is an appointed representative of Alan Boswell Insurance Brokers Ltd who are authorised and regulated by the Financial Conduct Authority.
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If you have any queries or would like to find out more please get in touch.
info@theafgroup.co.uk 01603 881881Honingham Thorpe, Colton, Norwich, Norfolk NR9 5BZ
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