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We strongly recommend that our guests take out holiday cancellation insurance. Doing so removes the worry should unforeseen circumstances mean that you have to cancel you holiday.
If you are relying on insurance that is provided as a benefit from using another service (such as those provided by banks), it is advisable to check that you are fully covered for UK holidays.
Our recommendation would be to use Guest First as they provide insurance specifically for UK residents who are holidaying in the UK. Their rates are also very reasonable.
Guests from outside the UK should ensure they have adequate travel and holiday cancellation insurance that covers the whole of their holiday period. Your home country will have companies that specialise in insurance for overseas travel.