If you’re hosting a short-term let property in East Shropshire — whether in Ludlow, Church Stretton, or one of the smaller villages — one question looms large: how does letting your home to guests impact your insurance premiums? In 2025, as more landlords turn to holiday lets, insurers are re-evaluating risk, and getting the right cover has become more important and potentially more expensive.

This blog dives into how short-let activity affects insurance in East Shropshire, what kinds of policies are available, common pitfalls, and actionable steps to manage risk — plus how Pass the Keys East Shropshire can support you.

Why Short-Term Letting Raises Insurance Costs

Short-term rentals are inherently riskier from an insurance perspective. Some of the key factors driving up premiums:

• • With frequent guest changes, there’s a higher likelihood of accidental damage, more wear and tear, or even malicious behaviour.
  • Ordinary residential or landlord insurance policies may exclude short‑term letting unless the insurer knows about it.

1. • Paying guests might be hurt on the property (e.g., slipping on wet floors), which increases the public liability risk.
   • Insurers offering holiday-let or short-term rental insurance typically include public liability cover to protect hosts.
     
     
   
   Unoccupied Periods
   
   
   • Properties don’t always have guests; off-season or gaps between bookings can leave your property unoccupied. Standard policies often limit how long a property can be empty before coverage changes.
   • Specialist holiday-let policies usually offer unoccupied cover for longer periods than standard home insurance.
     
     
2. Loss of Income
   
   
   • If damage makes your property uninhabitable, you won’t just be paying for repairs — you’ll lose bookings and revenue. Many holiday‑let policies offer “loss of rental income” protection.
   • To claim this, you’ll often need to provide detailed guest booking records.

• • Some policies offer cover for malicious damage by guests — a serious risk when different people are coming and going.
  • Insurance for short-term lets tends to include more comprehensive terms for accidental damage and theft compared to standard landlord insurance.

Which Types of Insurance Policies Are Relevant in East Shropshire

Depending on your letting model and property, different insurance products may apply:

• Holiday‑Let Insurance / Short‑Term Let Insurance: These are specialist policies designed for properties let for short periods. They often include public liability cover, loss of rental income, and extended unoccupied cover.
• Landlord Insurance (Long-Term): This typically covers traditional tenancies, not short-term lets. Using it for holiday rentals without disclosing to the insurer can invalidate your cover.
• Top-Up or Tenant ‘Hosting’ Covers: Some policies (like PIKL) enable tenants or landlords to top up their existing policy to cover short-let guest activity.

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Factors That Drive Higher Premiums in East Shropshire Specifically

While general principles apply, some local factors in East Shropshire could push insurance costs higher:

• Rural and Historic Buildings: Many properties in Shropshire are older cottages or listed buildings, which can be more expensive to insure.
• Flood Risk: Certain areas in Shropshire are more prone to flooding; location risk is a common factor in insurance pricing.
• High Turnover During Tourist Seasons: With demand peaking in summer or during local events, your risk profile may rise due to increased guest numbers.
• Security Measures: Adding alarms, CCTV, or smart locks can reduce risk and help lower premiums. Insurers take security seriously.

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Risks of Inadequate Insurance

If you don’t secure the right insurance, you face serious risks:

• Claims Denied: Standard home or landlord insurance may refuse to pay out if your property is used for short-term letting and you haven’t declared that.
• Loss of Income: Without loss of rent cover, damage that makes your property unavailable could cost you months of revenue.
• Liability Exposure: If a guest is injured, you may be personally liable without proper public liability cover.
• Legal Ramifications: Particularly for heritage or leasehold properties, underinsurance could lead to compliance or legal issues.

How to Manage Insurance Costs While Staying Protected

Here are practical strategies for East Shropshire hosts to optimise their insurance:

1. Be Transparent with Your Insurer
   Tell them your property is used for short-term lets. Full disclosure helps ensure the policy is valid.
2. Get Specialist Quotes
   Use brokers or insurers who understand holiday-let risk. Compare providers — not all quotes are equal.
3. Improve Security
   Install smart locks, smoke alarms, burglar alarms, or CCTV. These can lower your risk profile, and thus your premium.
4. Keep Detailed Records
   Maintain guest booking data, rental income, and occupancy logs. For loss-of-income claims, this documentation is vital.
5. Use Loss-of-Income Cover
   If your insurer offers it, choose a policy that protects you if your property becomes unfit to rent after damage.
6. Maintain Occupancy Checks
   During long empty periods, do regular checks on the property to satisfy unoccupied risk conditions of your policy.

FAQs 

1. Are insurance premiums higher for short-term lets in East Shropshire compared to long-term lets?
   Yes. Insurers view short-term lets as higher risk due to frequent guest turnover and guest liability.
2. Do I need to tell my insurer I’m using the property as a holiday let?
   Absolutely. Failing to notify your insurer may invalidate your policy.
3. Can I get cover for loss of rental income?
   Yes. Many specialist holiday-let insurers offer “loss of rent” cover to compensate for earnings lost when the property is uninhabitable.
4. Will older or listed properties in East Shropshire cost more to insure?
   Likely so — insurers often assign a higher risk profile to historic or non-standard construction properties.
5. Are there insurance options if my property is empty for long periods between lets?
   Yes. Specialist policies can cover unoccupied periods, often with inspection requirements to retain coverage.
6. Can I reduce premiums by improving security?
   Yes — installing alarms, locks, or CCTV usually lowers risk and can lead to premium discounts.

Conclusion: How Pass the Keys East Shropshire Can Help

Figuring out the right insurance for a short-term let in East Shropshire can be confusing and expensive — but it's vital for protecting your property, income, and liability.

Pass the Keys East Shropshire offers expert, on-the-ground support:

• We can review your current insurance and advise if it's adequate for holiday-let use.
  
  
• We help you gather booking records and turnover data, which strengthens your case for loss-of-rent cover.
  
  
• Our team can connect you with specialist insurance brokers who understand the short-let market in rural Shropshire.
  
  
• We also manage guest operations, including check-ins, security checks, and property care, reducing the risk of damage or liability.
  
  

By partnering with Pass the Keys, you can stay fully insured, compliant, and confident — without compromising on revenue.