Holiday let insurance: cover you should review

If you operate tourist accommodation, check that the insurance matches the property’s actual use. This guide helps you compare documents and cover; the appropriate policy depends on the activity, operator and risks you want to insure.

Insurance for tourist accommodation in Madrid

Public liability insurance deals with third-party claims in covered circumstances. It does not cover every loss or every amount. Check the operator’s applicable obligations and review limits, excesses, exclusions and insured persons.

Do not assume an ordinary home insurance policy permits holiday letting. Inform the insurer in writing of the use, services and operator, and request confirmation of cover. Some policies can be adapted; others exclude the activity.

Platform protections have their own conditions and do not automatically replace independently arranged insurance. Airbnb, for example, distinguishes Host Damage Protection from its Host Liability Insurance. The former is not an insurance policy; both mechanisms have limits and exclusions.

Check which bookings and circumstances each programme covers. Do not assume it covers stays from other channels, vacant periods or every incident. Nor is it correct to state generally that all platforms exclude fire or flood: read the terms.

Request proposals that explicitly identify the holiday letting activity, and compare the same risks and sums insured. Ask the broker or insurer to explain each section of cover, what is excluded and how claims are handled.

When comparing proposals, review at least the following areas; their inclusion and scope must appear in the documentation:

• Damage to buildings and contents: insured assets, sums insured, excesses and exclusions, including damage attributed to guests where covered.

• Theft and belongings: distinguish the owner’s possessions from guests’ belongings and check security, evidence and police-report requirements.

• Public liability: insured persons, declared activity, affected parties, limits per claim and exclusions.

• Unoccupied periods: conditions during closures or vacancies, including any monitoring or maintenance obligations.

Keep the policy, specific and general terms, payment receipts and confirmation of the declared use. If capacity, services or the operator change, ask how to report this and whether cover needs amending.

Compare scope as well as price

Request quotations using the same description of the property and activity. A lower premium is not comparable if the sum insured changes, the excess increases or a risk you need is excluded. Review the documentation with an insurance professional before taking out cover.

Organised management can help with inventories, incident reports and documentation, but does not replace policy analysis. Discuss conditions with your insurer or broker and agree with the manager who reports and documents each incident.

Coordinate your accommodation’s documentation

The insurer, owner and manager should understand their responsibilities and how incidents are reported. Discuss management with Alehost.