Hi,
If you plan on holiday letting, even to friends, third party liability insurance is essential as accidents happen, and if they do you don’t want to be held legally (and financially) responsible for any injury to third parties.
If for instance a holidaymaker falls off a damaged chair or slips on wet tiles and decides to take you to court and sue, you could face a legal battle and the prospect of compensation for loss of earnings. Liability insurance enables you to safeguard yourself from any legal hassles that are associated with renting out your property.
Be aware that some policies have a low liability limit of £100,000 cover, which is insufficient as personal injury claims and court costs can run into the millions. Check if the insurer offers a facility to increase the liability limit. A minimum indemnity limit of £2m is recommended.
Hope this helps.