If you open a serviced apartment (which sometimes goes by the name of serviced accommodation or short-term lets), traditional landlord insurance is typically not built to accommodate guests coming and going all the time. Your risk profile is different and being underinsured can be a real problem if you ever need to claim. For Serviced Apartments Birmingham, visit https://birminghamservicedapartments.co.uk/
This guide will show what often happens when you convert from a regular let to serviced accommodation.
1) Occupancy: high turnover, different risk
When you read it, the regular tenancy normally advances for months with the same occupants. When you have a serviced apartment, you might see a new guest arriving every few days.
That higher turnover can increase:
Malicious damage (more people using the property, more strangers)
Increased risk of theft (more copies of keys/codes out there)
Depreciation (furniture, appliances, locks, flooring)
2) Contents cover matters more
Often, conventional lettings are unfurnished and the tenant supplies their own furniture. In a serviced apartment, you’re providing everything – beds, sofas, TVs etc.
Make sure your policy covers:
The right replacement cost
Non-building accidental damage
High-value items (TVs, laptops)
3) Focus more on public liability
Guests are more like “visitors” and not tenants. For example, if someone slipped in the bathroom, tripped on a loose rug or was injured by a faulty handrail, you need public liability cover that reflects short stays.
Also consider:
Liability for cleaners/contractors on site
Outdoor areas (steps, balconies, patios)
4) Income and Accommodations
After something like a leak, fire, or storm damage, if the property is unliveable you are not losing rent when you are losing bookings with the right type of policy.
Look for cover that includes:
Short stay let loss of income (or loss of rent)
Costs incurred relating to the relocation of guests (subject always to your booking terms)
5) Security requirements can be stricter
The insurance company may require certain types of locks, window security, or alarms, for example, that meet specific standards. While setting up the self-check-in, ensure that your setup is as desired.
6) Assume your current policy is not okay
A common myth is “it’s still a rental, so landlord insurance has me covered”. It might work but most likely it will not.
Remind your insurer, before you renew: If you are running a serviced accommodation operation rather than lets, tell them and get it in writing what is not included.