House swapping – are you actually insured?

Home exchange, sometimes called house swapping, is becoming an increasingly popular way to travel in the UK while reducing accommodation costs.

Instead of booking a hotel or holiday rental, two households agree to stay in each other’s homes for a set period of time. These arrangements are typically organised through specialist online platforms that connect homeowners looking to travel, a craze that has been surging across Europe for many years and is now starting to gather momentum in the UK.

Reports show a 68 per cent increase in exchanges by UK members in the first half of 2024 compared with the previous year.*

While home swaps can offer a cost-effective and flexible way to holiday, there are important practical and financial considerations – particularly around insurance and property security.

This guide explains the risks to consider and what homeowners should check before agreeing to a swap.

What is a home exchange?

A home exchange is an arrangement where two people agree to swap homes temporarily, usually while travelling or on holiday. Unlike short-term rentals, no payment is made for accommodation, as both parties are staying in each other’s property.

There are two common types of exchanges:

Direct swaps – both households stay in each other’s homes at the same time.

Points-based swaps – some platforms allow homeowners to host guests and earn points, which can later be used to stay in other members’ homes.

Most swaps are arranged through established home exchange platforms, which typically offer identity verification, messaging systems, property listings and user reviews. These systems help build trust between members before an exchange takes place.

Why home exchange is growing in popularity?

Home swapping has grown steadily in recent years, particularly as travellers look for ways to reduce the cost of holidays.

Some of the main advantages include:

Lower accommodation costs – by swapping homes, travellers can avoid hotel or rental fees, which are often one of the biggest expenses when travelling.

More space and comfort – staying in a home often provides more space and amenities than traditional accommodation, including kitchens, gardens and living areas.

Living like a local – home exchanges often take place in residential areas rather than tourist districts, allowing travellers to experience destinations in a different way.

Someone occupying your home while you’re away – having guests staying in the property can also help avoid homes sitting empty during holidays and can help with pet care fees, if guests are willing to pet sit.

How to arrange a home exchange

Although every platform works slightly differently, the process usually follows a similar structure.

1. Create a listing – homeowners create a profile and upload photos of their home, including details such as location, including number of bedrooms, amenities and house rules.

2. Search for exchange partners – members can browse properties by destination and travel dates.

3. Start a conversation – before confirming a swap, both parties usually communicate through the platform to discuss expectations, house rules and practical arrangements.

4. Agree the exchange – once both sides are happy, the exchange is confirmed and travel plans can be finalised. Note it’s important to discuss any additional responsibilities thoroughly, such as pet sitting.

5. Prepare the property – hosts often leave information for guests, such as appliance instructions, Wi-Fi details, emergency contacts, local recommendations.

Clear communication can help ensure both parties understand how the home works and what is expected during the stay.

What does home exchange cost?

Although home exchanges allow travellers to avoid paying for traditional accommodation such as hotels or holiday rentals, they are not always completely free. There are still several costs homeowners may need to consider before arranging a swap, including platform fees, travel expenses and potential preparation costs.

Most home exchange arrangements are organised through specialist online platforms, which typically charge an annual membership fee. These subscriptions allow members to create property listings, communicate with potential exchange partners and arrange swaps through the platform. Membership costs can vary depending on the provider and the services included, but they commonly range from around £100 to £200 per year. Some platforms offer additional features such as verification services, guest support or insurance protection as part of the membership.

Homeowners may also choose to prepare their property before guests arrive. While this is not always necessary, some people opt to arrange professional cleaning services before or after the exchange to ensure the home is ready for visitors and left in good condition for their return. This can help maintain standards for both parties and reduce the likelihood of misunderstandings.

Although accommodation may be exchanged rather than paid for, travellers should also remember that other holiday costs still apply. Flights, transport, meals and travel insurance will usually still be required in the same way as any other trip.

Home exchange and home insurance

One of the most important checks before arranging a home swap is whether your home insurance policy allows this type of arrangement. Most standard home insurance policies in the UK are designed for properties that are primarily owner-occupied, meaning the policyholder and their household are normally living in the home. Because of this, insurers may include conditions about how the property is used and who is staying there.

For example, policies may contain terms relating to who is allowed to occupy the property, how long the home can be left unoccupied, and whether guests are permitted to stay in the home while the policyholder is away. If a home exchange means the property is occupied by people who are not members of the household, it could fall outside the typical use described in the policy wording. In some cases, failing to notify the insurer about a change in how the home is being used could affect whether a claim is accepted.

The Association of British Insurers (ABI) advises homeowners to check the details of their policy carefully and inform their insurer if their circumstances change or if there is anything they are unsure about in their cover. Insurance policies can vary significantly between providers, so understanding what is and is not covered is important before making arrangements that involve other people staying in the property.

Home insurance policies generally provide cover for the structure of the building and the contents inside it against risks such as fire, flooding, storms, burst pipes and theft, but the exact conditions of cover will depend on the individual policy. For example, some policies restrict cover if a property is left empty for an extended period, often around 30 to 60 days, or if the home is used in a way that differs from the normal residential use set out in the policy documents.

If you are considering a home exchange, it is generally advisable to contact your insurer before confirming the arrangement. Some insurers may allow the swap as long as they are informed in advance, while others may apply additional conditions or require temporary changes to the policy. In certain cases, insurers may offer optional extensions or additional cover to ensure the home and its contents remain protected during the exchange period.

Because home insurance policies differ between providers, the safest approach is to review your policy wording and speak directly with your insurer before agreeing to a swap. Doing so can help ensure that your cover remains valid and that both your property and belongings are properly protected while you are away.

Risks to consider before swapping homes

A popular home exchange platform reported nearly half a million swaps in 2024, up 42% on 2023 – with 99.7% of exchanges occurring without incident.**

Although many exchanges are successful, homeowners should still consider the potential risks;

Property damage – guests may accidentally damage furniture, appliances or fixtures.
Insurance gaps – failing to inform your insurer about a home exchange could leave homeowners without valid cover.
Security concerns – even when using verified platforms, guests are still unfamiliar individuals staying in your property.
Misunderstandings – different expectations around pets, cleaning or house rules can sometimes cause issues.

Many hosts help reduce risk by choosing reputable platforms, communicating clearly with guests and leaving written instructions for the home.

Is home exchange right for you?

Home exchange can be an affordable option for homeowners who want to explore the UK for less. However, it may not suit everyone. Some homeowners may prefer the certainty of traditional accommodation rather than allowing others to stay in their home. Understanding the practical arrangements and checking insurance implications can help ensure any exchange runs smoothly.

It’s important for homeowners to plan carefully and check the practical details before agreeing to a swap. Taking these steps can help homeowners enjoy the benefits of home exchange while ensuring their property and finances remain protected.

References:

*https://www.thetimes.com/life-style/property-home/article/house-swap-london-to-cornwall-move-38skwjljq

**https://www.theguardian.com/travel/2025/aug/30/house-swapping-sitting-doesnt-have-to-be-airbnb-how-to

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.