What's the best insurance for a holiday rental?

April 2024

Besides carefully selecting your guests to avoid unpleasant surprises, it’s also advisable to get holiday rental insurance. You’ll protect your home and gain peace of mind. Nothing may happen, but if it does, your insurance will cover the expenses. However, it all depends on the coverage you’ve chosen.

Holiday rental liability insurance is specially designed for holiday rental properties and covers you against third parties. In other words, if any mishap occurs at the property, you’ll be covered, and the insurance will take care of it.

One of the biggest fears of hosts is finding the property damaged after guests depart or experiencing theft. That’s why, at Holidu, we recommend getting insurance before listing your holiday home. Additionally, good holiday home insurance can even cover items stolen from your tenants.

Types of holiday rental insurance:

1. Public liability insurance: 

As mentioned earlier, this insurance covers damages to third parties. Therefore, it’s an exceptional ally for hosts, protecting them against guests or third parties, and covering both damages and physical injuries. This type of insurance is mandatory in many autonomous communities.

2. Home insurance:

This is the most common insurance for many holiday homes. Coverage varies greatly. You can find basic policies covering thefts and damages to more comprehensive ones covering all kinds of mishaps. However, not all coverage applies to holiday rentals, so we advise you to read the clauses carefully to ensure you choose those applicable to your property.

3. Multi-risk insurance: 

It’s the ideal insurance for those who want complete peace of mind. It’s a very comprehensive insurance that includes public liability coverage. If you’ve listed your property on our holiday rental website, don’t forget to get insurance, and this one specifically provides excellent coverage.

4. Damage insurance: 

Generally, there isn’t much demand for this, unlike the previous ones, as often this insurance is part of home insurance. This type protects you primarily from damage. Since its coverage is lower, it’s cheaper than the others. It’s worthwhile if you complement it with another or if it’s already included in the insurance you’ve contracted.

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What does holiday rental insurance cover?

It all depends on the clauses you choose to contract. Ultimately, it’s best to pay for personalised insurance as its price will be related to the number of coverages. At Holidu, we advise you to select at least the minimum necessary coverage for your holiday rental. And don’t hesitate, getting insurance is always an investment that brings peace of mind. What coverages do the policies include?

• Owner’s public liability
• Material damages to the property
• Coverage for damages to third parties
• Vandalism
• Physical injuries
• Protection against thefts
• Material damages to the dwelling
• Refund of cancelled bookings

Is it mandatory for my holiday home to have insurance?

It would depend on the autonomous community where your property is located. Nonetheless, owners of holiday homes should at least get public liability insurance. This type of insurance is very suitable when operating a holiday rental as it covers damages caused by your tenant, although not damages.

Therefore, it’s advisable to have insurance that includes a good range of coverages, especially if your property receives numerous guests throughout the year. It’s common for privately owned apartments to suffer damages such as broken windows, burst pipes, faulty cisterns… However, when it comes to holiday rentals, damages are even more frequent.

With comprehensive insurance, there are no worries. It’s worth noting that, even when carefully selecting guests, you’ll be hosting unknown people in your rental property who probably won’t take care of it as you would. Home insurance policies, generally, only cover the policyholder, as they are geared towards primary residences, not rentals.

Which insurance is best for holiday rentals?

That depends on the needs of your holiday rental. Although opting for multi-risk insurance is always better due to its extensive coverage. If you prefer another, just consider whether your holiday rental is in an urban or rural area, the risks it’s exposed to, whether it’s in a quiet area or not…

Nevertheless, here are some recommended insurance companies for holiday rentals:

• Easy Rent (FEVITUR)
• AXA holiday home insurance
• FlexMyRoom
• Catalana Occidente tourist home insurance

Furthermore, we recommend getting some extra coverage for your holiday rental property that includes:

• Household belongings
• Loss of bookings due to various reasons
• Temporary unavailability of the property due to force majeure

Practical tips for getting holiday rental insurance:

Lastly, we want to offer you some practical tips when getting holiday rental insurance:

• Check the regulations in your community; each one establishes different requirements. However, at the very least, you should have public liability insurance.
• If in doubt, consult with a specialist about which insurance is most suitable for you. Getting insurance of this nature is an investment worth making, so it’s important to choose the right one.
• Analyze the coverage to determine which ones best suit your property. A house located in a busy neighbourhood is not the same as one in an isolated area, for example.
• Read the fine print or gather information about what the selected insurance covers and what it doesn’t. It should cover damages, thefts, and material damages.
• Compare prices of different insurances and their corresponding coverage. Making comparisons can help you save money.
• Read reviews from other clients who have taken out the same policy. Nowadays, it won’t be difficult thanks to the internet, as there are different platforms where such personal reviews are published.

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