Everything you need to know about guest house insurance.

Most home insurance policies don't cover paying guests, because taking guests usually counts as running a business from your home.

We often speak to owners who thought the public liability on their home policy would protect them if a guest was hurt. A home policy is written for a private home, so check your policy wording before you take a booking, or ask us to look at it with you.

Yes. We offer free, no-obligation reviews of your insurance, and the easiest start is a call to 01288 353999 with your current schedule to hand.

We look at what your policy covers, what it leaves out, and whether the sums insured still look right for your business.

Usually, yes. GOV.UK says you must have employers' liability insurance as soon as you become an employer, and that includes part-time and casual help.

That could be a cleaner, a breakfast cook or someone on reception for the summer. GOV.UK lists some exceptions, for example if you only employ close family members. Some guest house policies include employers' liability and some charge extra for it, so tell us who helps out and we'll check it is on your quote.

The rebuild cost is what it would cost to rebuild your guest house from the ground up, and your buildings should be insured for that figure, not the market value.

It should include the main building, outbuildings, walls, gates, fences, drives and paths, plus clearing the site, architects' and other fees, and rebuilding like for like. It does not include the value of the land, because you would still own the plot. Listed buildings, unusual materials and hard-to-reach places can push the figure up.

We can't tell you how much to insure for, but we can point you to help: a chartered surveyor's assessment (the most accurate), the free BCIS rebuild calculator, or an online valuation from RebuildCostAssessment.com.

If your sums insured are too low, a claim may not be paid in full, so underinsurance usually shows up at the worst possible time.

Your buildings figure can be too low. So can your contents, or the time your loss-of-income cover lasts. Check your rebuild cost, list what your contents would cost to replace, and if you've had building work done or bought new furniture, tell us so the figures can be updated.

It depends on your policy, because accidental damage by guests is not a standard part of every guest house policy.

Some insurers include it, some charge extra for it and some don't offer it at all. Check your policy wording for "accidental damage", or ask us to check it for you.

Most guest house policies cover your buildings and contents against the "standard perils": fire, lightning, explosion, aircraft, storm, flood, escape of water, theft, vehicle impact, riot, civil commotion and malicious damage.

Subsidence, heave and landslip are now included by many insurers, sometimes as an extra. Accidental damage is not a standard peril. Your policy wording sets out exactly what yours includes.

Yes. Tell your insurer about any claims in the last 5 years, however small, and whether they were paid or not.

If a claim is left out, the insurer may refuse a later claim or cancel the policy. Be open with them, and with us, and it is far easier to sort things out if something goes wrong.

Not normally, unless your insurer agrees to it, because a guest house policy is written for what happens at your guest house.

Selling your own food at a local market stall to promote the guest house can sometimes be added. Catering for events, or working as a chef somewhere else, usually needs a separate policy. Tell us what you do and we'll find the right cover.

Often, yes. Some guest house insurers won't cover licensed premises, but others will insure you for selling alcohol to guests staying with you.

A bar open to the public is a different risk, so it may need a hotel-style policy. You may also want cover for wines and spirits, and loss of licence cover.

It can. A pan on the hob or a small table-top fryer is usually fine, but bigger fryers can bring extra terms or fewer insurers.

Very few standard guest house insurers will quote for a fish-and-chip-shop style fryer. Give us the details of your frying equipment and we'll make sure you're on a suitable policy.

Yes. Tell your insurer about any leisure facility, because leaving it out could affect a claim if someone is hurt.

That includes a swimming pool, gym, sauna, steam room, hot tub, tennis court or children's play area. Insurers will often cover them, sometimes with extra terms or a higher price.

It is possible, but plan ahead, because most guest house insurers won't cover rooms let this way.

A small number of specialist schemes will, usually at a higher price than a standard policy. Tell us how often, how many rooms, and whether stays are short or long, so we can search the right part of the market before you sign a contract.

With the right policy, yes, but tell your insurer first, because events bring a different risk from overnight guests.

Insurers will ask how often you hold events, how many people come, whether they use the house or a marquee, and who does the food and entertainment. We'll gather that and find insurers who will look at it.

Most guest house insurers give full cover while you're away for up to 30 to 45 days at a time, but longer breaks can limit your cover.

After a set time empty, some policies drop cover for things like theft or escape of water. Tell us how long you'll be away. Keep the heating on low or drain the water system, ask someone to check the house and clear the post, and don't post your trip on social media.

Start with buildings at the full rebuild cost, contents, public liability for guests, and employers' liability if anyone helps, then look at loss of income.

If you have a mortgage, your lender may set a minimum buildings figure. Ask for quotes before you complete, so the price and cover hold no surprises. Ring us and we'll go through it with you.

If you let rooms to paying guests through Airbnb or a similar site, you usually need a policy written for that, because most home policies don't allow it.

There isn't one policy that fits every host. A room in your home, a self-catering annexe and a B&B with breakfast are rated differently, so we ask how you run your lets before we search for cover.

No. Insurers usually see self-catering as a higher risk than B&B, because guests use the cooking equipment themselves.

B&B usually means you cook breakfast and serve it in a dining room. Self-catering means guests have their own oven, hob or microwave, in a room or an annexe. Tell your insurer about any self-catering. Some won't cover it as part of a guest house policy, and others will price for it.

The main things are where your guest house is, what it would cost to rebuild, how big it is, what you offer guests, and your claims history.

Insurers rate down to postcode and even street, so crime, flood and subsidence risk all count. A bar, self-catering rooms, events, a pool or a big fryer can change the price or the terms.

Usually, yes. Every policy has an excess, which is the part of each claim you pay yourself.

For example, with a £250 excess, a fire that causes £4,000 of damage would be settled at £3,750. Some risks carry a higher excess, such as subsidence, escape of water, flood zones or high-theft areas. A higher voluntary excess may lower the price a little. Check your policy so you know what you'd pay.

Yes. Where your guest house is has a big effect on the price, because insurers rate each postcode and sometimes each street.

Crime rates, and being near a river, the sea, or a flood or subsidence area, can raise the price or limit the cover. If you're buying a guest house, ask for quotes before you buy so there are no surprises.

If you're our customer, contact us first: call 01288 353999, email us or pop in to our Bude office. We'll talk it through and help you report it.

Each insurer has its own way of handling claims, so we tell you what they need and stay with you until it's settled. If it's an emergency outside our office hours, your policy wording has the insurer's claims contact details. Tell us about any incident that could lead to a claim, even if you don't think you were at fault.

Yes. Tell us straight away about any incident that could lead to a claim, whether or not you think you were at fault.

If you get a letter or a claim from someone else, pass it to us without replying to it. Telling us early lets your insurer protect your interests.

One of the team gets in touch shortly, then searches our panel for you. No hard sell.

If you sent the full fact-find form, we confirm we have it and check any answers with you before we get quotes. If you sent a quick quote request, we ring at the time you chose and go through the full fact-find on the phone, which takes around 20 to 30 minutes.

No. We're a broker, so we search our panel of insurers for your guest house and come back to you with real quotes, rather than show a guide price.

Every guest house is different, and the right cover matters as much as the price. That is why we ring you to go through it.

Yes. Our full fact-find form asks every question insurers need, and takes about 10 to 15 minutes. You can fill it in at your own pace.

If you'd rather talk it through, send a quick quote request and we'll ring you at a time that suits you, or call us on 01288 353999. Whichever way you choose, we check the details with you before we get quotes.

One of the team at Chapter House in Bude. We're not a call centre, all telephone calls are answered by one of our experienced and trained members of staff.

We're a small team, so you'll soon know us by name. You can meet everyone on our Meet the team page.

We're an insurance broker. We don't write the insurance ourselves: we search a panel of UK insurers and specialist guest house schemes, recommend a policy and set it up for you.

Then we look after it with you: changes during the year, renewals and claims.

Yes. Hodgson Insurance Services is a trading name of Hodgson Insurance Ltd, authorised and regulated by the Financial Conduct Authority, Firm Reference Number 1000347.

You can check our entry on the FCA register, or call the FCA on 0800 111 6768.

Yes. We insure hospitality businesses all over the UK, from Scotland down to our home county of Cornwall.

Most of our work is done by phone and email, so it makes no difference where your guest house is.

No. This is the specialist guest house website of Hodgson Insurance Services, and the same team arranges business and personal insurance too.

For other cover, such as your car or home, see our main website, hodgsoninsurance.co.uk.

Usually not. Most home insurance policies don't cover paying guests, because taking guests counts as running a business from your home.

Check your home policy wording before you take your first booking, and tell your home insurer what you plan to do. A B&B policy is written for paying guests, and it can cover your home too.

If you employ anyone, usually yes. GOV.UK says you must have employers' liability insurance as soon as you become an employer.

That could be a cleaner for a few hours a week, or someone cooking breakfasts in the summer. GOV.UK lists some exceptions, such as when the only people you employ are family members. Tell us who helps you and we'll check it is on your quote.

Often, yes. Many B&B policies can cover your home and the business together, with the building, your own belongings and the guest rooms on one policy.

It can also stop gaps opening up between two separate policies. Not every insurer offers it, so ask us. Tell us about anything valuable you keep at home, such as jewellery or a collection, because policies often have a limit for any one item.

Tell us before you close. Many insurers allow seasonal closing, though there are usually conditions, especially if the house will be left empty.

If you carry on living there while the B&B is closed, it's usually simpler. If you go away for weeks, some policies limit cover for things like theft or escape of water once the house has been empty for a set time. Check what your policy asks of you, such as keeping the heating on low or having someone check the house.

Before your first paying guest arrives. Ask for quotes a few weeks before you open, and tell your home insurer what you're planning.

That leaves time to answer insurers' questions about the building, fire safety and the food you'll serve. If you have a mortgage, your lender may need to agree before you take paying guests. If you rent, your landlord may need to agree too.

We use 6 paying guests as the dividing line: up to 6 is a B&B, and more than 6 is a guest house.

Insurers and fire safety rules may treat larger places differently, so tell us how many rooms you let and the most guests you can take at once. If you add rooms, tell us before the extra guests arrive.

Usually, yes. Seasonal staff on your payroll are still employees, and GOV.UK says you must have employers' liability insurance as soon as you become an employer.

Tell us how many people you employ at your busiest time and your yearly wage bill, as insurers usually ask for both. GOV.UK lists some exceptions, such as when the only people you employ are family members.

It can. Tell your insurer you're licensed, because some guest house insurers won't cover licensed premises and others will.

Ask about cover for your wines and spirits, and for loss of licence if your licence is withdrawn or not renewed for reasons beyond your control. A bar that's open to the public is a different risk again, and may need a hotel-style policy.

Long enough to rebuild, reopen and win your bookings back after the worst happens. That length of time is called the indemnity period.

Think about planning permission, finding builders, and how long it takes for bookings to build up again once you reopen. A bigger building can take longer to put right than many owners expect, so talk it through with us before you choose.

Tell us before you close. Many insurers allow seasonal closing, but most have conditions once the building has been empty for a certain time.

Some policies limit cover for theft or escape of water after a set period empty. Check what yours asks of you, such as draining the water, keeping the heating on, or regular checks. If you plan building work while you're closed, tell us about that too.

No. We focus on independent and owner-managed hotels, where we get to know the people who run them.

If you own your hotel and run it yourself, or it's independent with its own manager, we'd like to hear from you. Ring us and we'll talk through how your hotel runs.

Often, yes. Tell us first, because weddings, parties and functions bring a different risk from overnight guests, and insurers want the details.

They'll ask how often you hold events, how many people come, whether you use a marquee, and who does the food, music and entertainment. We gather all that and find insurers who will look at it.

Usually, yes. Tell your insurer about the bar, who you serve and how late you open, and ask about cover for your stock and licence.

Bar stock such as wines and spirits often has its own limit. Loss of licence cover can help if your licence is withdrawn or not renewed for reasons beyond your control. Live music, a late licence or door staff are worth mentioning too.

Yes. Tell your insurer about any pool, spa, gym, sauna or hot tub, because leaving it out could affect a claim if someone is hurt.

Insurers often ask whether a pool is indoor or outdoor, whether it's supervised, and who carries out any spa or beauty treatments. Some will cover them with extra conditions or at a higher price.

Yes. Tell your insurer before any extension, renovation or structural work starts, because building work can change the risk and the cover.

Insurers usually ask what the work is, what it's worth, how long it will take and whether you'll stay open. Some add conditions, such as rules for work with heat or flames. When it's finished, check your rebuild figure still fits.

It's a condition in many policies that can cut a claim if you're underinsured, in proportion to how far short your sum insured is.

Insure for 75% of the full value and the insurer may pay only 75% of each claim, even a small one. Some policies allow a margin, such as 15%, before average applies, and some don't include it at all. Check your policy wording, or ask us to check it with you.

No. The rebuild cost is what it would take to clear the site and build it again. The market value is what it would sell for, land included.

Either one can be higher. Land in a popular town can be worth a lot, while an old stone building can cost far more to rebuild than it would sell for. Buildings insurance should be based on the rebuild cost.

Check it every year at renewal and after any building work. A professional assessment every few years helps keep the figure accurate.

Building costs change, and so does your guest house. An extension, new en-suites or a converted outbuilding all add to the figure. Tell us about any changes so your cover can be updated.

Not on its own. Index-linking adjusts your sum insured in line with building costs, but it can't fix a figure that was wrong to start with.

If the starting figure is 20% too low, index-linking keeps it about 20% too low. It won't pick up an extension or other building work either. Get the starting figure right, then let index-linking help it keep pace.

If your policy has an average condition, the insurer may pay only part of your claim, cut in proportion to how far short your sum insured is.

The most a policy usually pays is the sum insured, so a big loss could leave you well short of the cost of rebuilding. It's far easier to put the figures right at renewal than after a claim.

Usually not much, if at all. Most guest house policies exclude cyber losses or give only a small amount of cover, so check your policy wording.

Look for a “cyber” or “data” exclusion in the wording. Even where a policy covers damage to your computers, it often won't cover the costs of a data breach, ransomware or lost bookings. We can go through yours with you.

It's worth thinking about. Booking sites protect their own systems, but your login, your email, your devices and the guest details you keep are still your responsibility.

One common scam is to steal the owner's booking site login, then message guests directly. If your account is taken over, you may lose bookings and face complaints. Whether cover is worth it depends on how you work, so talk it through with us.

Sometimes. Some cyber policies include social engineering or invoice fraud cover, but it's often limited or an optional extra, so ask us before you rely on it.

Insurers may set conditions, such as checking any change of bank details by phone before you pay. If you've been tricked, ring your bank straight away. The sooner they know, the better the chance of stopping the payment.

Whether a fine can be insured is limited by law, so don't assume a policy will pay one. Some policies cover legal costs if the ICO investigates.

What helps most is looking after guests' data well and knowing what to do if something goes wrong. The ICO has free guidance for small businesses.

Sometimes. Some guest house policies offer cyber as an add-on, but it's more often a separate policy. We'll look at both and explain the difference.

An add-on can be simpler, but the limits are often lower. A separate cyber policy usually gives wider cover. Tell us how you take bookings and payments, and what guest details you keep, and we'll search for cover that fits.