Why a standard landlord policy is not enough
Insuring a property let to contractors is not the same as insuring a normal buy-to-let, and assuming one policy covers the other is a costly mistake. A standard landlord policy is written for a single household on an assured shorthold tenancy who stays for months and treats the home as their own. The moment you let to rotating workers on short, serviced stays, you have changed the risk, and an ordinary policy may simply not pay out.
Insurers price on how a property is used. Frequent changeovers, multiple unrelated occupants and inclusive serviced lets all raise the chance of a claim and the type of claim. If you have not told your insurer the property is used this way, they can treat the cover as invalid. The first rule of insuring a contractor let is honesty about exactly what you are doing.
Buildings cover for serviced use
Buildings insurance protects the structure itself: the walls, roof, fixtures and permanent fittings against fire, flood, escape of water and similar events. For a property let to contractors you need this cover written on the correct basis, declared as serviced or short-let use, with a sum insured that reflects the full rebuild cost rather than the market value.
Underinsuring the rebuild figure is a common trap. If the sum insured is too low, a major claim can be scaled down proportionally, leaving you to find the shortfall. Review the rebuild cost periodically, especially as building costs change, and make sure the policy schedule actually names the way the property is occupied.
Contents cover for a let you furnish
A contractor let is furnished and equipped by you, so the contents are your asset and your risk. Landlord contents cover protects the furniture, white goods, kitchenware, beds and soft furnishings you provide against damage, loss and sometimes accidental damage. With crews using the property hard and changing over often, accidental damage cover is worth paying for rather than assuming wear will never happen.
Think about what a single bad incident would cost to replace. A burst pipe through a furnished house, a kitchen fire or a theft during a void can run to thousands. Match the contents sum insured to the real replacement cost of everything you have put in, not a rough guess, and keep an inventory with photographs so a claim is straightforward to prove.
- check_circleFurniture, beds, mattresses and soft furnishings
- check_circleWhite goods and kitchen appliances
- check_circleCrockery, cutlery, cookware and small electricals
- check_circleLinen, towels and decor provided for guests
- check_circleAccidental damage cover for hard-working crews
Public liability: the cover you must not skip
Public liability insurance covers you if a guest or visitor is injured, or their property is damaged, because of something connected to your premises. In a contractor let, where people you have never met come and go constantly, this is arguably the most important cover of all. A loose stair rail, a faulty appliance or a slip on a wet floor can lead to a claim that dwarfs any other cost the business faces.
Check the limit of indemnity is high enough for the number of people staying and the standard the property is held to. Many distribution networks and corporate bookers will not place a crew with you unless you can show evidence of liability cover, so it protects both your finances and your ability to win contracts in the first place.
Loss of rent and other useful extensions
If an insured event such as a fire or flood makes the property unusable, loss of rent or loss of income cover replaces the earnings you would otherwise have lost while it is repaired. For a contractor let with a guaranteed-rent obligation or a committed crew booking, this can be the difference between a manageable setback and a serious cash problem.
Other extensions worth weighing up include alternative accommodation costs to rehouse a crew elsewhere, malicious damage by occupants, and legal expenses cover for disputes. None of these are automatic, so read the schedule and decide which risks you genuinely want carried by the insurer rather than by your bank balance.
- check_circleLoss of rent or income if the property becomes unusable
- check_circleAlternative accommodation to rehouse a crew after a claim
- check_circleMalicious or accidental damage by occupants
- check_circleLegal expenses cover for disputes
- check_circleEmployers' liability if you directly employ cleaners or staff
Disclosure, occupancy and the small print
The clauses that catch operators out are usually about how the property is occupied and how long it sits empty. Many policies impose conditions on unoccupancy, requiring you to drain systems, turn off the water and check the property regularly once it has been empty beyond a set period. Contractor lets have natural void weeks between projects, so these unoccupancy terms matter more than for a permanently tenanted home.
Tell the insurer the truth about occupant numbers, whether they are related, the length of typical stays and the inclusive serviced nature of the let. Non-disclosure is the single most common reason a genuine claim is refused. A policy that costs a little more but actually responds when you need it is far cheaper than a bargain policy that pays nothing.
Getting the right cover in place
Because insuring a property let to contractors sits between landlord, holiday-let and commercial insurance, it is worth using a broker or insurer who understands serviced accommodation rather than buying the cheapest off-the-shelf landlord policy online. Explain the model in full, ask specifically whether short serviced lets to working crews are covered, and get the answer in writing.
Keep your safety paperwork current alongside the policy, because most insurers make valid certificates a condition of cover. A property with up-to-date gas, electrical and fire-safety checks, an honest declaration of use and the right combination of buildings, contents and liability cover is one you can let to crews with genuine peace of mind.
Frequently asked questions
Can I use my normal landlord insurance for a contractor let?expand_more
Usually not. Standard landlord policies are written for a single household on a long tenancy. Letting to rotating crews on short serviced stays changes the risk, and an ordinary policy may not respond to a claim. You need cover specifically declared for serviced or short-let use, with the occupancy described honestly on the schedule.
What types of cover does a property let to contractors actually need?expand_more
At a minimum: buildings cover on the correct rebuild figure, landlord contents cover for everything you furnish, and public liability for injuries or damage to guests and visitors. Loss of rent, accidental and malicious damage, and unoccupancy terms are all worth considering given the void weeks and heavy use a contractor let sees.
Why is public liability so important for contractor accommodation?expand_more
Because strangers come and go constantly, and a single injury claim can dwarf every other cost. A faulty appliance, a slip or a loose handrail can lead to a serious claim. Many corporate and network bookers also require evidence of liability cover before placing a crew, so it protects both your finances and your ability to win work.
What happens if I do not tell my insurer the property is let to crews?expand_more
The insurer can treat the policy as invalid and refuse a genuine claim, because cover is priced on how the property is used. Non-disclosure is the most common reason claims are rejected. Always declare occupant numbers, typical stay lengths and the serviced nature of the let, and get confirmation of cover in writing.