Holiday Letting
A tourist-use property carries risks that a standard home policy does not cover.
Why insure your holiday property
Home insurance won't do
Home insurance is designed for someone who lives in the property. Letting it to strangers on a short-term basis is a different activity, and most policies exclude it.
You're liable to the guest
If someone is injured on the property, or a fault of yours floods the neighbour, the claim is made against the owner, not against the guest staying there.
The days you're not letting
If a loss leaves the property unusable, you lose bookings already confirmed and have to rehouse the guests who were due to arrive. That can be insured too.
What it covers
The specific cover and its limits depend on the insurer and the option you choose. At Retuerto y Asociados we put them in writing before you decide.
Liability
Damage to guests, neighbours and third parties arising from ownership of the property, with legal expenses cover and provision of bonds.
Water and weather events
Leaks, seepage, dripping, flooding, wind, rain and hail, including locating the source of the fault.
Fire, explosion and lightning
Includes smoke, impact from objects, firefighting and debris removal costs, and total loss of the property.
Theft and vandalism
Theft, forcible entry theft and petty theft inside the property, replacement of keys and locks, and damage caused by guests.
Glass and electrical damage
Breakage of glass, sanitary ware, ceramic hobs, marble surfaces and solar panels, and electrical faults in appliances.
Uninhabitability
If the property cannot be used after a claim, this covers alternative accommodation for the period agreed in the policy.
Home assistance
Plumbing, locksmith, electrical and glazing call-outs, with professionals who attend even if you're hundreds of miles away.
Legal protection
Advice and representation in disputes arising from the tenancy and ownership of the property.
Is it compulsory?
Regulation of tourist accommodation is set at regional level and varies from one territory to another. In most, at least a liability insurance policy is required in order to register the property.
That legal minimum covers damage to third parties, and nothing else: it will not compensate you if a guest wrecks the furniture or a water leak ruins the kitchen. That's why it's usual to take out a full holiday-letting property policy, which includes the compulsory liability cover and also protects the property itself.
At Retuerto y Asociados we tell you what the rules applicable to your property require, and how far it's worth covering in your particular case.
The unexpected is expensive
Once you start letting, the unexpected stops being a hypothesis. A burst pipe, a burglary, a storm that damages the house until it can't be lived in: any of these episodes arrives, on top of everything, with guests already on their way.
That's when the cost nobody had budgeted for appears: guests have to be rehoused, refunded, or both. With a holiday-letting policy, that money doesn't come out of your pocket.
And since every property is different — a flat in the centre, a villa with a pool, an apartment within a homeowners' association — the policy is tailored to what you actually have: buildings and contents sums insured, liability limits and optional cover.
Frequently asked questions
How do I take it out?
The simplest way is through a brokerage: we compare policies from several insurers for your type of property and show you what each one covers and leaves out, with the limits in writing.
What exactly does liability cover?
Damage caused to third parties, legal representation and assistance in proceedings, and the provision of bonds if a court requires them. It does not compensate damage to your own property: cover for damage is needed for that.
What risks do I run by letting?
Mainly two: that the property suffers damage — through use, negligence or vandalism — and that damage originating there affects the community of owners or a neighbour. In the second case, the compensation can easily exceed what you earn from the letting.
What types of property can be insured?
Flats, apartments, houses and villas. Also outdoor areas: swimming pool, garden or terrace, as long as you tell us about them when taking out the policy so they're included in the risk description.
What an Insurance Broker really is
A broker is the expert who acts between the insurance company and the client, representing the insured party and their interests, and not the insurer exclusively.
We are the only professionals legally qualified to advise with strict independence and impartiality from insurance companies.
- We compare the marketAdvice based on an objective analysis of contracts from a sufficient number of insurance companies.
- It costs you nothingThe broker is paid by the insurer in the form of commissions. In principle, the service has no cost for the client.
- We handle everythingFrom taking out the policy to the claim, if one arises.
- We defend your interestsBefore the insurance company, in the same way a solicitor would.
Other insurance for individuals
Motor
From third-party cover to fully comprehensive, with travel assistance, replacement vehicle and legal expenses.
View policy
Motorbike
In Spain, motorbike and moped insurance is compulsory in order to ride freely.
View policy
Electric scooter
Liability cover to ride, plus the option to also cover accidents and the scooter itself.
View policy
Home
Water damage, glass, fire, weather events, short circuits, breakdowns and theft.
View policy
Rent guarantee
You get your rent even if the tenant stops paying, with legal proceedings and damage covered.
View policy
Homeowners' associations
Protects the building of the community of owners: structure, buildings cover and liability.
View policyWhat people tend to believe, and what actually happens
Five ideas we hear often, which turn out to be costly on the day there's a claim.
"Going it alone is cheaper."
The broker costs you nothing: the insurer pays them. And we compare several companies at once, which you would otherwise have to approach one by one.
"All policies are the same."
Two policies at the same price can have very different limits, excesses and exclusions. What matters is what the terms say on the day of the claim.
"The broker works for the insurer."
The broker represents the insured party and their interests. It's the insurer's agent, a different role altogether, who represents the company.
"If I have a claim, I'll sort it out myself."
How the claim form is opened and documented shapes everything that follows. We handle that for you, and the claim itself too.
"Switching insurer is a hassle."
We handle it for you, including cancelling the previous policy in time so it doesn't renew automatically.
"The compulsory insurance is enough for me."
The legal minimum covers what you cause to others, not what happens to you. That's the difference between a scare and a real problem.
Shall we prepare a holiday letting insurance quote for you?
Tell us about your situation and we'll send you a comparison of the best options on the market, the best support for making the right decision.
- No obligationWe give you the price and the cover; you decide.
- No costAs brokers, we're paid by the insurer, not by you.
- Quick responseDuring office hours, usually the same day.
What questions do you have?
We'll get back to you with a holiday letting insurance quote and a tailored comparison.
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Would you rather talk? Call us on 922 235 203 or message us on WhatsApp at 667 420 381.