Important insurance for hosts of holiday homes

 

Imagine: it's high season, your holiday house is fully booked – but suddenly it happens. A burst pipe floods half the house, the guest is angry, the damage is extensive. Or a guest trips on the terrace and demands compensation. No host wants situations like this, but unfortunately they can happen faster than you think. This is exactly where the importance of insurance for hosts becomes clear.

When renting out holiday apartments and holiday houses, there are many risks – from property damage to personal injury. Many hosts underestimate the fact that standard insurance policies are often not sufficient to provide adequate cover in the event of damage.

In this article, we will show you which insurance policies are really important for hosts of holiday homes, what you should look out for in policies and how you can protect yourself from unpleasant surprises. Then you can sit back, relax and welcome your guests with peace of mind.


 

Why special insurance is essential for hosts

As soon as you start renting out your holiday home to guests on a regular basis, this may be considered a commercial activity depending on your local laws and regulations. This also changes the requirements for your insurance cover. Standard policies simply do not cover many types of damage.

Typical risks:

  • Damage caused by guests
  • Liability issues in the event of personal injury or property damage
  • Loss of income due to damage to the rental property
  • Theft of inventory by unknown persons or guests
  • Natural hazards such as flooding or storm damage

Comprehensive insurance protection protects you from expensive surprises – and secures your income in the long term.

Our Tip:
Seek advice from a specialist insurance expert – that way, you'll be on the safe side.

Important insurance policies for your holiday home at a glance

Here are the most important types of insurance that you should be aware of as a host of a holiday apartment:

1. Building insurance / residential building insurance

Unfortunately, serious damage caused by fire, water or storms can happen faster than you think – which is why building insurance is mandatory for every property. This applies to private homes as well as rented holiday homes.
This insurance usually covers damage caused by water, fire, storm and hail, as well as natural events such as earthquakes or floods.

Similar rules apply to your holiday home as to your own home. However, if you rent out a holiday apartment, a property management company or owners' association may be responsible for the building insurance.

Important: As damage to holiday properties is often discovered late, you must always inform the insurance company that you are renting out the property. This may increase your premiums, but it will provide you with reliable cover in the event of an emergency.


Tip: Some insurers offer special policies for hosts of holiday homes, often including a tradesman service. This is particularly useful if your holiday home is far away and you need help quickly.

2. Household contents insurance – protection for inventory and furnishings

Holiday apartments and holiday houses are rented out furnished, so it is not enough to insure just the building. All household contents should also be insured.

Household contents insurance covers everything that is not permanently attached to the property, i.e. furniture, electrical appliances, decorations, clothing and kitchen equipment. This policy is usually intended for private hosts and covers damage caused by fire, burglary, water damage, storm and hail.

For more commercially used holiday homes, contents insurance designed for business use is the right solution. It works in a similar way to home contents insurance, but also covers business equipment, machinery and devices – in other words, everything that forms the material basis of your rental business.

Important: Check regularly that the sum insured corresponds to the actual value of your inventory. This will prevent you from being underinsured and ensure that you are fully covered in the event of damage.

3. Liability insurance for hosts

As a host of a holiday home, it is particularly important to protect yourself against liability risks. If a guest has an accident – for example, due to a defective appliance or a trip hazard – you can be held liable.

Therefore, check your personal liability insurance: some policies already cover damage caused by renting out a property. If not, you should consider taking out separate host liability insurance.

As the host of a holiday home, you may be liable for any damage caused by your guests, whether personal injury or property damage. The duty to maintain safety is particularly important here: you must ensure that your holiday home is safe and that there are no sources of danger.

If this duty is breached and an accident occurs, personal liability insurance is often not sufficient. In this case, you need more comprehensive cover:

  • Homeowners' liability insurance for owners of rented properties
  • Public liability insurance if you operate the holiday home commercially or run an accommodation business

These insurance policies cover, among other things, compensation for pain and suffering, damages and costs for damaged or lost property belonging to your guests.

4. Rent loss insurance

If your property cannot be rented out temporarily due to damage (e.g. fire, flooding), this insurance will compensate you for the loss of earnings.

5. Legal protection insurance for hosts

This insurance provides you with support in legal disputes, e.g. disputes with guests or neighbours.

6. Glass insurance (optional)

Recommended if your holiday house has many large windows or glass doors. This insurance covers repair costs in the event of glass breakage. Depending on your location, glass breakage may already be included in other insurance policies or offered as an optional add-on.

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Practical example: When things get serious – how insurance can help you

Example 1:

A guest accidentally damages the new leather sofa with red wine. The household contents insurance for holiday homes covers the damage.

Example 2:

A storm blows the roof off the property, which cannot be rented out for weeks. Thanks to rental loss insurance, you remain financially secure.

Example 3:

A holiday guest falls on the icy outdoor steps and is seriously injured. The liability insurance for hosts covers the costs.

Further information for hosts

Deepen your knowledge with further articles in our guide:
🔗 Legal information & insurance for hosts

Note: Insurance regulations and product availability vary by country. Be sure to check with a local insurance provider to ensure your coverage is valid and sufficient.

Conclusion: Insurance for hosts is mandatory – but with a system

Renting out a holiday home is an attractive business model. But without the right insurance cover, it can quickly become expensive. The most important policies help you minimise risks and approach your rental business with peace of mind.
Become a host

we love hosts

Not yet registered with atraveo by e-domizil? We do everything for our hosts. Register now for free and become part of our community.

Register now Learn more