What is holiday insurance?

Holiday insurance - often called travel insurance - is cover designed to help with the unexpected costs of a trip, including emergency medical treatment, cancellation, travel disruption and lost baggage. Cover varies by policy, so always check the wording.

Will my insurance pay for car hire excess damage?

Standard travel insurance rarely covers car hire excess. If you scratch a rental car, the rental company may charge you the first £500 to £2,000 of the repair cost. To avoid this, you can buy 'Car Hire Excess Insurance' as a standalone policy or an add-on. This is often much cheaper than buying the 'super collision damage waiver' offered at the rental desk.

When should I buy holiday insurance?

It is generally suggested to buy holiday insurance as soon as you book your trip, so cancellation cover is in place from the date of booking. Always check when each section of cover starts and ends.

What should I do if I damage something in an Airbnb?

First, inform the host immediately to maintain transparency. Take photos of the damage. While Airbnb provides 'Host-Protection', they may still seek reimbursement from you. Check your travel insurance policy wording for 'Personal Liability' or 'Tenant's Liability'. If your policy excludes property in your care, you may have to settle the cost directly with the host or through the platform's resolution centre.

Does holiday insurance cover pre-existing medical conditions?

Many policies cover pre-existing medical conditions only if you declare them and the insurer agrees to provide cover. If a condition is not declared accurately, a claim may be refused. Specialist providers focus on medical travel cover.

Is accidental damage to hotel furniture covered?

Hotel rooms are treated similarly to holiday rentals. Most UK insurers exclude damage to the room you are occupying. However, some premium policies include 'Financial Failure' or 'Property Damage' extensions that might cover small accidental losses. Always read the 'General Exclusions' section of your policy to see if 'temporary residence' is specifically mentioned as an exclusion for liability claims.

Is the cheapest holiday insurance always the best choice?

Not necessarily. A low premium can mean lower cover limits, higher excesses or important exclusions. Compare the policy wording, not just the price.

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Does holiday insurance cover rental damage?

Last updated 12 June 2026 Reviewed by Josh T.How we wrote this

Standard holiday insurance rarely covers damage to holiday rentals or car hire excess as a default feature. Most basic policies focus on personal liability for accidental injury to others or damage to third party property, but they often exclude property in your care, custody, or control. To protect against accidental damage to a villa, apartment, or rental car, you usually need a specific add-on or a standalone rental protection policy. This guide explores how UK insurers treat rental damage, the common exclusions to watch out for, and how to ensure you are fully protected before you travel.

Traveller watching a paper plane rise into the sky

Key facts

Typical cost range: £15-£45 per person for a 1-week trip with enhanced liability (UK-priced 2026)
Standard excess: Most UK policies apply a £50-£250 excess per claim
Car hire excess: Typically £3-£10 per day for standalone UK-regulated cover
Liability limit: Most UK policies provide £1 million to £2 million in personal liability
FOS complaint window: You have 6 months to contact the Ombudsman after a final decision

TL;DR

Standard holiday insurance usually excludes damage to your rental property because it is in your 'care and control'. To be covered for villa damage or car hire excess, you must check your personal liability terms or buy a specific add-on policy. Always document the property condition when you arrive and leave.

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Why rental damage protection matters

Accidents in a holiday rental can lead to significant financial disputes with property owners or management companies. Whether it is a spilled glass of red wine on an expensive rug or a broken appliance in a luxury villa, the costs of repairs or replacements are often deducted from your security deposit. Without the right insurance, you may be forced to pay out of pocket for these incidents, which can reach hundreds or even thousands of pounds depending on the value of the property.

Security deposits for villas can exceed £500-£1,000
Property owners may charge premium rates for professional cleaning
Accidental damage is a common cause of deposit disputes
Standalone policies can provide peace of mind for high-value rentals
Liability claims can take months to resolve without insurer support

What is typically covered by standard policies

Most UK travel insurance policies include a section for Personal Liability, which typically covers you if you are held legally responsible for accidentally injuring someone or damaging property that does not belong to you. However, there is a crucial distinction: most insurers exclude property that is 'in your care, custody, or control'. This means that while you might be covered if you walk into a shop and break a vase, you are often not covered for damage to the flat you are currently living in as a guest.

Common exclusions for rental damage

Understanding what is not covered is essential for avoiding unexpected bills. Insurers almost always exclude damage caused by wear and tear, intentional acts, or incidents occurring while the policyholder is under the influence of alcohol or non-prescription drugs. Furthermore, damage caused by pets is rarely covered under standard holiday insurance, even if the rental is advertised as pet-friendly.

Damage caused by pets or domestic animals
Intentional or malicious damage to the property
Incidents involving the use of illegal substances
General wear and tear or gradual deterioration
Damage to communal areas in multi-occupancy buildings

Typical costs and pricing factors

The cost of adding rental damage protection or purchasing a standalone 'collision damage waiver' for car hire varies based on your destination and the length of your stay. For a standard one-week trip to Europe in 2026, a basic travel insurance policy might cost between £15 and £35, but adding specific rental protection can increase this. Dedicated car hire excess insurance, which is a common form of rental damage cover, usually costs between £3 and £10 per day when bought independently from a UK provider.

Choosing the right cover for your destination

Your destination plays a significant role in the type of cover you need. In the USA, for example, liability claims and property repair costs are significantly higher than in many parts of Europe, making robust cover essential. If you are travelling within the EU, the Global Health Insurance Card (GHIC) covers your medical needs but provides no protection for property damage, meaning you must rely solely on your insurance policy for rental-related issues.

How to handle claims and evidence

If an accident occurs, the quality of your evidence will determine the success of your claim. You must document the damage immediately and notify the property owner or rental agency in writing. According to the Financial Ombudsman Service (FOS), many disputes arise because travellers fail to provide adequate proof of the incident or do not follow the correct reporting procedures outlined in their policy wording.

Take clear, dated photographs of the damage from multiple angles
Obtain a written report or invoice from the property owner
Keep a copy of your original rental agreement and inventory
Report the incident to your insurer within 24-48 hours
Retain receipts for any emergency repairs you are forced to pay for

FCDO and regulatory context

The Foreign, Commonwealth and Development Office (FCDO) advises all UK travellers to ensure their insurance is sufficient for their needs, including any planned activities or rental arrangements. The Financial Conduct Authority (FCA) regulates insurance providers in the UK to ensure they treat customers fairly. If you feel a claim for rental damage has been unfairly rejected, you have the right to escalate the matter to the Financial Ombudsman Service after following the insurer's formal complaints process.

Practical rental checklist for travellers

Before you sign a rental agreement or unpack your bags, follow these steps to protect your finances. A few minutes of due diligence can prevent a stressful claim process later. Always read the 'Personal Liability' section of your Policy Summary (IPID) to see exactly what is excluded regarding temporary holiday accommodation and hired vehicles.

Policy checklist

Medical cover limit at least £2 million (£5m+ for long-haul)
Cancellation limit covers the full cost of your trip
Excess you'd be willing to pay per claim
Activity list includes everything you've planned
Age limits and medical screening completed
Cruise / winter sports / golf extras if needed

Insurance disclaimer: This page is general guidance, not regulated financial advice. Cover, limits, excesses and exclusions vary by insurer and policy. Always read the policy wording.

Affiliate disclosure: Holiday Insured may earn a commission when you click through to a provider and buy a policy. This does not affect what you pay or which policies we describe. Read our full affiliate disclosure.

Frequently asked questions

Plain English answers to common holiday insurance questions.

Most standard policies do not cover damage to a villa you are staying in because it is considered under your 'care, custody, and control'. While personal liability cover protects you if you damage someone else's property, your temporary holiday home is usually excluded. You should look for a policy with a specific 'Rental Accommodation Damage' extension or check if your home insurance provides 'out of home' liability.

Sources and further reading

Sources are independent UK authorities. Holiday Insured is not affiliated with any of the bodies listed. Read our editorial policy.

Written by

Holiday Insured Editorial Team

Reviewed by

Josh T.

Last updated

12 June 2026

Read our editorial policy. This content is general guidance and not regulated financial or medical advice.