As the number of holidaymakers opting for staycations in the North East soars, property owners looking to cash in on the short-term rental market risk considerable financial losses due to inadequate insurance cover.
The warning has been issued by specialist insurance broker Lycetts in the light of latest figures from VisitEngland, which reveal a 31 per cent increase in domestic overnight holiday tourism across the North East during 2017.
“The potential returns from short-term lets can be very lucrative, and this recognition, combined with tax reforms that have adversely affected the long-term rental market, has led to an increasing number of accidental holiday let landlords,” said Rupert Wailes-Fairbairn, Newcastle-based Lycetts’ Divisional Director.
“Many are unaware of, or underestimate, the unforeseen risks they may face. Moreover, they are unaware that there may be serious gaps in their cover.
“Holiday let and house-sharing platforms will generally have limited vetting procedures for tenants and the insurance they offer will rarely be comprehensive, with claims made by landlords often proving unsuccessful.”