The short-term rental boom has fuelled a wave of unconventional property conversions across the UK, and insurers are feeling the pressure. “We’ve had calls about cottages, log cabins, yurts, even an aircraft fuselage,” said Steve Parker (pictured), managing director of Vasek Insurance, which specialises in non-standard property risks for property owners and other brokers. “Someone wanted to stick a hot tub next to a double-decker bus in a field. The variety is endless.”
While these one-of-a-kind getaways may charm holidaymakers, they pose serious headaches for brokers and underwriters alike.
The growing appetite for quirky rentals often lands brokers in new business conversations with little precedent and even less data.
“Some of the calls we get are speculative - ‘I’ve just bought a bus, can I insure it?’ Others come after the property’s already been fitted out,” said Parker. “Either way, you’re dealing with something that doesn’t fall into any standard category.”
Key issues include ambiguous construction types, heightened fire risks, uncertain lightning exposure, and the near impossibility of finding comparable structures for valuation. “You can’t price a railway carriage in a field the same way you price a semi-detached in Croydon,” Parker said. “And if there’s a loss, how do you replace it? Can I even get another fuselage?”
Loss of rent exposure adds a further layer of complexity. “If that double-decker bus is out of action for weeks or months, who pays the landlord? These are the conversations we have with our capacity providers,” he explained.
The rise of Airbnb-style lets has also shifted the risk profile of second homes and holiday properties, particularly around contents insurance.
“In long-term rentals, the landlord usually doesn’t need contents cover,” Parker explained. “But in short-term lets, they’re filling the space with high-end furnishings to make it appealing.”
The result? Elevated claims risk paired with widespread underinsurance. “We’re seeing landlords investing £50,000–£60,000 in upgrades - heat pumps, underfloor heating, triple glazing - but relying on index linking alone at renewal. That’s just not enough.”
Parker sees an urgent need for brokers to step in. “At both new business and renewal stages, brokers need to ask: Have you made improvements? Has the use changed? The sums insured need to reflect reality,” he said.
Adding urgency to the situation is the looming Renters Reform Bill, which could mandate pet acceptance for landlords, including those operating short-term lets.
“If that happens, insurers will have to think hard about how to respond,” said Parker. “Right now, most policies don’t cover pet damage. What happens when a dog chews through a Grade II-listed door? You can’t exactly get a replacement off the shelf.”
He raised concerns about the knock-on effects for claims and loss of rent. “If a pet causes damage and it takes weeks to repair, the landlord may lose income. Do we extend the loss of rent section? Do we build in pet exclusions or offer bolt-ons?” he asked.
Vasek is already exploring options. “We’ve spoken with underwriters about potential policy extensions, should pet acceptance become compulsory,” Parker said. “We want to be quick to market if it comes in.”
As regulatory pressure mounts on long-term landlords, some are considering pivoting to short-term lets as a way to retain more control.
“We are seeing more people explore the holiday let route,” said Parker. “There’s a feeling that short-term gives you more flexibility, especially if the new rules heavily favour tenant rights.”
But that flexibility comes with insurance consequences, many of which aren’t well understood. “You’ve got the blurring line between residential and commercial, the unusual constructions, contents exposures, regulatory changes, it’s a complex picture,” he added.
And while the industry has a strong track record of adapting, Parker cautioned that the speed of change is accelerating. “The answer is being prepared. We've done it before. We just have to do it faster this time.”
