Holiday lets and short lets

Serviced accommodation insurance

Reviewed by the Apex broking team · Last reviewed 2026-10-29

Serviced accommodation insurance combines property, guest liability, employers' liability and loss of income cover for apartments or houses let night by night as a business. Ordinary landlord policies commonly exclude short stays, so the cover has to match how the units are actually run.

Part of: Holiday let insurance in the South West

In short

Serviced accommodation (SA) means flats or houses let for short stays with cleaning and changeovers, run as a business. Insurers see more guests, more turnover and more staff than a standard let, so they usually want a policy written for SA. If you own the units you insure the buildings, or your share of them; if you run rent-to-rent SA, the owner normally insures the building and you insure your liability, contents and income. Fire safety law for paying guest accommodation applies, and England's short-term let registration scheme is expected from March 2027.

Why serviced accommodation is insured differently

A long let has one household for months at a time. A serviced apartment can have a hundred different guests a year, let through several platforms, with keys in key safes, a cleaning team and linen deliveries. Insurers price that as a hospitality business rather than a tenancy. Common differences from a landlord policy:

public liability is written for guests and visitors, not just tenants;
contents cover reflects furniture, appliances and linen you supply and replace often;
loss of income is measured on nightly revenue, which can be much higher than rent from a long let;
employers' liability is needed once you employ cleaners or a changeover team, and some insurers ask how you use contractors;
theft and malicious damage by guests are treated differently from theft by tenants.

A landlord policy that does not mention short stays may not respond at all. If short stays are only part of a property portfolio, a portfolio policy can sometimes include them where declared.

Owner-operators and rent-to-rent SA operators

Who insures the building depends on who owns it.

Cover	Owner-operator	Rent-to-rent SA operator
Buildings	You, or the freeholder's block policy if you own a flat	Usually the owner, whose insurer must know the property is used for short stays
Contents and fittings	You	You, for anything you supplied
Public liability	You	You, in your own name, as the business guests deal with
Loss of income	You, on your nightly revenue	You, sized to your revenue rather than the rent you pay the owner
Employers' liability	You, if you employ staff	You, if you employ staff

For flats, the block's buildings policy is usually arranged by the freeholder or managing agent. That insurer may need to know about short-stay use, and many leases restrict it, so check before you start. See insurance for blocks of flats. Rent-to-rent operators should also read our rent-to-rent insurance guide, which covers owner consent, noted interests and rent obligations that keep running after a fire.

Fire safety, planning and registration

Fire safety. The Regulatory Reform (Fire Safety) Order 2005 applies to paying guest accommodation in England. Government guidance for small premises covers a single property on the ground floor, or ground and first floor, providing sleeping accommodation for a maximum of 10 persons, with no more than four bedrooms on the first floor, and individual flats. Larger or more complex premises should follow the sleeping accommodation fire risk assessment guide. The responsible person must keep a record of the fire risk assessment.
Planning. GOV.UK says your local planning authority decides whether short-term letting needs planning permission. In London, short-term use beyond 90 nights in a calendar year can need it, under section 25A of the Greater London Council (General Powers) Act 1973 as inserted by the Deregulation Act 2015.
Business rates. In England a unit is assessed for business rates if available to let commercially for 140 nights and actually let for 70 nights in the last 12 months. Wales uses 252 and 182.
Registration. England's national registration scheme is expected to begin in March 2027. GOV.UK has said the register will not affect hotels, hostels or B&Bs, and serviced apartment operators should watch how the final scope is drawn. See short-term let registration and insurance.

How claims arise: illustrative examples

These examples are illustrative, not real claims or outcomes.

A fire in one unit of a block. A guest leaves a pan on the hob in a sixth-floor flat. Smoke damages the corridor and two neighbouring flats. The block insurer pays for the structure, then asks whether short-stay use was declared. Neighbours claim against the operator for smoke damage to their contents.
A cleaner injured. A cleaner employed by the operator strains her back carrying linen bags up stairs. She brings an employers' liability claim.
Weeks without revenue. An escape of water from the flat above closes a two-bedroom apartment for ten weeks. The operator's lost nightly income far exceeds the rent it pays the owner. Whether loss of income responds, and how much, depends on how the policy measures revenue and for how long. Our guide to business interruption insurance explains the principle.
Guest data exposed. A booking system is compromised and guest details are taken. Property policies do not usually respond; see cyber cover for hospitality guest data.

What insurers usually ask an SA operator

How many units, where they are, and whether each is a house, a flat in a block or above commercial premises.
Whether you own, lease or manage each unit, and who insures the building.
Nights let a year, revenue per unit and the platforms or direct channels you use.
Guest vetting, minimum stays, party and group booking policy, and how keys are handed over.
Fire risk assessments, alarm systems and who checks them.
Staff numbers and how you use contractors.
Any units that also operate as an HMO or switch between short and long lets.

For single properties see holiday let insurance, and hosts using platforms can read insurance for short-term let hosts. Owners in the South West can also see holiday let insurance in the South West.

How Apex helps

Apex arranges cover for holiday lets, HMOs and short lets, including serviced accommodation run by owners and rent-to-rent operators. To quote we need your business activities, turnover, unit addresses, claims history, who insures each building, staff numbers and nights let per unit. A broker reads each enquiry and comes back with options, and there is no fee for a quote. Cover is always subject to the insurer's acceptance and the policy terms.

Sources

Frequently asked

Is serviced accommodation covered by landlord insurance?

Often not. Many landlord policies exclude or restrict short-term and holiday letting, or cover it only when declared. Serviced accommodation brings more guests, more turnover and often staff, so insurers usually want a policy written for it, with public liability for guests and loss of income based on nightly revenue.

Who insures the building in rent-to-rent serviced accommodation?

Normally the owner, whose buildings insurer should be told the property is used for short stays by an operator. The operator usually insures its own public liability, contents it supplies, lost revenue and employers' liability. Ask the owner for written confirmation that their insurer knows and for a copy of the schedule.

Do fire safety rules apply to serviced apartments?

Yes, in England the Regulatory Reform (Fire Safety) Order 2005 applies to paying guest accommodation. The responsible person must carry out a fire risk assessment and keep a record. Government guidance for small premises covers up to 10 guests; larger or more complex premises should follow the sleeping accommodation guide.

Will serviced apartments need to register in England?

England's mandatory national registration scheme for short-term lets is expected to begin in March 2027. GOV.UK has said the register will not affect hotels, hostels or B&Bs. The full scope has not been published, so serviced apartment operators should check the final rules when they appear.

Do I need employers' liability insurance for my cleaners?

If your cleaners are your employees, usually yes: HSE says employers are required to insure against liability for injury or disease to their employees, subject to limited exemptions. If they work for a cleaning company, that company should hold its own. Whether a self-employed cleaner counts as your employee depends on the facts, so tell the insurer how you engage them.

Talk to a broker about this cover

Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.

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Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.