Home swapping trend raises insurance coverage concerns, Saga warns

Growing interest in home swap holidays is raising questions about insurance protection, with new research from Saga suggesting many travellers may be unaware of the coverage implications of exchanging properties.

A survey of 500 UK homeowners conducted in October 2026 found that 37% would like to take a home swap holiday before the end of the year.

Saving money on accommodation was the leading motivation, cited by 38% of respondents, followed by access to more luxurious properties (24%) and the opportunity to take longer holidays (23%).

However, separate research involving 1,000 homeowners revealed potential gaps in insurance awareness, with 59% saying they would not notify their home insurer before exchanging properties, or were unsure whether notification was necessary.

Unlike conventional hotel stays or holiday rentals, home swapping adds insurance considerations because travellers simultaneously occupy another person’s property and allow guests into their own.

While travel insurance may provide protection against certain risks during a trip, it does not necessarily cover damage, theft, or liability arising from guests staying in the policyholder’s home. These exposures are generally matters for home or specialist insurance, depending on the policy terms and the nature of the exchange.

Anna Thunstrom, Head of Home Insurance at Saga, warned that homeowners should disclose such arrangements to their insurers, even when no money changes hands.

“It’s a common assumption that if no payment is involved, there’s no need to inform your insurer, but that isn’t always the case,” she said.

Saga said insurers may impose additional conditions, restrict cover for accidental or malicious damage, or decline to insure certain home exchange arrangements.

The findings highlight the importance of understanding the boundaries between travel and property insurance as alternative accommodation arrangements become more popular.

Home swapping also presents a potential customer communication challenge, particularly when travellers assume travel insurance provides comprehensive protection for all aspects of their holiday arrangements.

The findings add to wider concerns about whether insurance products are keeping pace with changing travel habits, an issue discussed during ITIC UK 2026’s session on policy wording and underwriting.