Home Insurance for Airbnb & Short-Term Rentals in Spain
What Owners Should Check
Key Takeaways
- If you rent your home on Airbnb (or similar), a "normal" home policy may not cover the same risks unless the insurer knows it's a short-term rental.
- The biggest gaps are usually liability to guests, guest-caused damage, and claims linked to unoccupied periods.
- A tourist license (Vivienda de Uso Turístico) is legally required in most regions—operating without one can void your insurance.
- The cleanest approach is to declare the rental use, get licensed, then build cover around your real setup (keys, cleaning, check-ins, and time empty).
Short-term rental income can look simple: you list the property, guests come and go, and you keep the calendar full. Insurance is where it gets complicated. Many owners only discover the gap after the first big incident—water damage while guests are inside, a broken window, a fire from a kitchen accident, or a liability claim because someone slipped.
This guide explains how to avoid that situation and what to check so your cover matches how you actually use the property. We cover tourist license requirements by region, coverage comparisons, and practical steps to protect your rental investment.
Tourist License Requirements by Spanish Region
Before thinking about insurance, you need the legal foundation. Each Spanish autonomous community has its own rules for short-term tourist rentals. Operating without the required license is illegal and can void your insurance.
| Region | License Name | Key Requirements | Typical Timeline |
|---|---|---|---|
| Andalucía | VFT (Vivienda con Fines Turísticos) | Declaration to Registro de Turismo, energy certificate, first occupation license | 2–4 weeks |
| Cataluña | HUT (Habitatge d'Ús Turístic) | License number required, restricted zones in Barcelona, community approval may be needed | 3–6 months (longer in Barcelona) |
| Valencia | VT (Vivienda Turística) | Registration with tourism authority, energy certificate, habitability certificate | 4–8 weeks |
| Madrid | VUT (Vivienda de Uso Turístico) | Separate entrance required in some zones, 90-day minimum let rules in certain areas | 3–8 weeks |
| Balearic Islands | ETV (Estancia Turística en Viviendas) | Strict quotas, many areas closed to new licenses, sustainability fee applies | 3–12 months (often unavailable) |
| Canary Islands | VV (Vivienda Vacacional) | Zone restrictions, community approval, cannot be in tourist complexes | 2–6 weeks |
| Basque Country | VFT (Vivienda para Uso Turístico) | Declaration to tourism department, occupancy limits, fire safety requirements | 2–4 weeks |
| Galicia | VUT (Vivienda de Uso Turístico) | Declaration to Xunta de Galicia, habitability certificate, insurance requirement | 2–4 weeks |
Insurance implication: If you operate without the required license and make a claim, the insurer may argue you were conducting an illegal business activity. This can void coverage entirely or reduce payouts significantly. Get licensed first.
Why Short-Term Rentals Change Home Insurance
Home insurance is priced and written based on how the property is used. A primary residence with stable occupancy is not the same risk as a property with a rotating set of guests.
Short-term rentals can change:
- Who is inside the home (and how often)
- How keys are handled (lockboxes, codes, third parties)
- How often the home is empty (off-season, gaps between bookings)
- The chance of accidental damage (more "first-time users" of appliances)
- Liability exposure (guest injuries, neighbour complaints)
Important: The number one "fast fail" in a claim is when the insurer believes the risk was not disclosed correctly. Undisclosed short-term rental activity is a top reason for claim disputes.
Coverage Comparison: Standard Home vs Short-Term Rental Insurance
Understanding what's covered (and what's not) helps you choose the right policy type.
| Coverage Element | Standard Home | Long-Term Rental | Short-Term Rental |
|---|---|---|---|
| Buildings cover | |||
| Contents cover | |||
| Liability to guests | |||
| Guest-caused damage | |||
| Loss of rental income | |||
| Extended unoccupied periods | |||
| Pool/garden cover | |||
| Legal expenses |
What You Typically Want Covered for an Airbnb-Style Property
You're not just protecting walls and furniture. You're protecting yourself from the kinds of claims that happen when strangers use the property.
Buildings and Fixed Installations
Cover for the structure and fixed parts: plumbing, built-in kitchen, bathroom fittings, floors. Include any extensions, garages, or outbuildings.
Contents (Furnishings You Provide)
Beds, sofas, TVs, small appliances, kitchen items, décor, and outdoor furniture. Short-term rentals often have more contents than typical homes.
Liability to Guests and Third Parties
If a guest slips, gets hurt, or claims the property was unsafe. In apartments, protection if an incident affects neighbours. Aim for €600,000+ minimum.
Accidental and Guest-Caused Damage
Some policies treat accidental damage as an add-on or limit it heavily. Guest damage may be treated differently. Confirm explicitly.
Loss of Rental Income
If a covered event (fire, flood) makes the property uninhabitable, you lose bookings. Good policies compensate for proven rental income loss.
Legal Expenses
If a guest dispute goes to court or you need legal help with a liability claim, legal expenses cover can save thousands in solicitor fees.
Unoccupied Periods
Many policies have conditions if a property is empty for a certain time (often 30–60 days). Short-term rentals can have gaps, especially in low season. You want wording that fits that reality—ideally 90+ days unoccupied allowance.
Step-by-Step: Getting Short-Term Rental Insurance Quotes
Follow this process to get accurate quotes and avoid surprises at claim time.
Gather Your Property Documentation
Before requesting quotes, collect: tourist license number and registration date, property deed (escritura) for rebuild value, recent photos of all rooms, inventory list with approximate values, any existing insurance policy documents.
Calculate Accurate Sum Insured Values
Buildings: use rebuild cost (not market value)—typically €1,200–€1,800/m² in Spain. Contents: add up furniture, appliances, bedding, kitchenware, outdoor items. Include professional photos for high-value items. Underinsurance triggers proportional claim reductions.
Contact Multiple Brokers/Insurers
Request quotes from at least 3 providers. Explain clearly: property is used for short-term tourist rentals, expected occupancy pattern, whether you manage directly or use an agency, any special features (pool, garden, multiple buildings).
Compare Coverage, Not Just Price
Check: liability limits (€300K vs €600K vs €1M), guest damage inclusion, unoccupied period limits, excess amounts per claim type, loss of income cover and calculation method. The cheapest quote often has the biggest gaps.
Get Written Confirmation of Key Points
Before signing, ask for written confirmation that: short-term rental use is covered, guests are included in liability protection, your unoccupied period pattern is acceptable. Keep these confirmations with your policy documents.
Practical Checklist When Comparing Policies
Keep it simple, confirm these in writing:
| Item | What to Check |
|---|---|
| Declared use | Confirms short-term tourist rental (VUT/VFT/HUT) is covered |
| Tourist license | Policy doesn't exclude unlicensed activity (but get licensed anyway) |
| Liability amount | €600,000+ recommended; €1M+ for villas with pools |
| Guest liability | Explicitly includes guests and third-party damage from incidents |
| Water damage | Covers sudden leaks; explains position on gradual seepage |
| Contents sum | Realistic for furnished rental (€15,000–€40,000+ typical) |
| Unoccupied rules | 90+ consecutive days allowed; clear on what's reduced if exceeded |
| Loss of income | Calculation method (actual bookings vs estimated average) |
| Claims handling | What evidence is required (photos, invoices, incident reports) |
Common Exclusions and "Claim Blockers"
A lot of problems aren't about the event itself—they're about policy conditions.
"Commercial Use" Exclusions
Some insurers treat short-term letting as a business use. If the policy excludes business activity, you can end up with a fight when a guest is involved.
Unlicensed Operation
Operating without a tourist license is illegal. Insurers may refuse claims if they discover you were renting without proper registration.
Poor Maintenance
Slow leaks, ongoing damp, and long-term deterioration are classic decline reasons. The risk is higher in rentals because issues may go unnoticed between check-ins.
Key/Security Conditions
If your policy requires certain locks or security behaviour, and you use a lockbox or shared codes, make sure that setup is acceptable.
Parties and Events
Damage linked to parties can be treated differently than normal domestic accidents. Policies vary on "gathering" definitions.
Pool Safety Non-Compliance
If your pool lacks required safety features (fencing, alarms) and there's an incident, coverage may be reduced or denied.
What to Do When Something Goes Wrong: Claims Process
Fast, documented action increases your chances of a successful claim.
Document Immediately
Take photos and videos of damage from multiple angles. Document the date, time, and circumstances. Get written statements from guests or witnesses if possible.
Prevent Further Damage
Take reasonable steps to limit additional damage (turn off water, cover broken windows). Keep receipts for emergency repairs—these are often reimbursable.
Notify Your Insurer Promptly
Most policies require notification within 7 days (some sooner for certain claims). Call the claims line, note the claim reference number, and confirm what documentation they need.
Gather Supporting Documents
Collect: purchase receipts/invoices, booking records showing the guest, any platform communications, your property inventory, repair quotes from licensed contractors.
Work with the Adjuster
Be available for the loss adjuster's visit. Have all documentation ready. Ask questions about timelines and next steps. Keep copies of everything you submit.
Pro tip: Create a "claims-ready" folder before any incident happens. Include your inventory with photos, purchase receipts, tourist license, and insurer contact details. When something goes wrong, you're prepared.
How to Set It Up So Insurance Matches Your Real Operation
This is where owners win or lose. Get the foundation right.
Get Licensed First
Apply for your tourist license before advertising the property. The license number must appear on all listings. Operating without it is illegal and can void insurance.
Declare the Use Clearly
Tell the insurer the truth: short-term rentals, frequency, whether it's your main home or a dedicated rental, and who manages it (you, agency, cleaner, keyholder).
Insure Contents Like a Furnished Apartment
Short-term rentals often have more replaceable items than primary homes (extra bedding, kitchen sets, outdoor items). Underinsuring contents is common—aim for realistic replacement value.
Put Basic Evidence Systems in Place
If there's a claim, you'll want: check-in/check-out photos (even quick ones), a basic inventory list, invoices for major items and repairs, messages or incident logs from guests/cleaners.
Align House Rules with Coverage Realities
This isn't about "being strict." It's about reducing the incidents insurers argue over: unattended cooking, smoking, candles, and unsafe balcony use. Clear rules = fewer disputes.
Review Annually
Contents values change, regulations evolve, and your rental pattern may shift. Review your coverage each renewal to ensure it still fits your situation.
Common Mistakes Short-Term Rental Owners Make
Avoid these pitfalls that lead to claim rejections or coverage gaps.
Using Standard Home Insurance
Not declaring rental use, then discovering gaps when making a claim. Always get specialist cover.
Relying Only on Airbnb Protection
Platform protection has limits and exclusions. It's a supplement, not a replacement for proper insurance.
Operating Without a License
Illegal operation can void insurance and result in fines. Get licensed before your first guest.
Underinsuring Contents
Rental properties often have more contents than estimated. Low sums trigger proportional claim reductions.
Ignoring Unoccupied Limits
Off-season gaps can exceed policy limits. Check your unoccupied period allowance matches your calendar.
Poor Documentation
No inventory, no photos, no receipts. When a claim happens, you can't prove what you lost.
Home Insurance vs Public Liability Insurance: Do You Need Both?
Sometimes one policy can include strong liability. Sometimes you need a dedicated liability solution (especially if the property is run as a business or the liability limits are not high enough).
| Consideration | Home Insurance with Liability | Separate Liability Policy |
|---|---|---|
| Best for | Apartments, simpler setups, lower risk | Villas with pools, high guest volume, higher limits |
| Typical limits | €300,000–€600,000 | €1,000,000+ |
| Admin complexity | Single policy, one renewal | Two policies to manage |
| Cost | Combined premium | May be cheaper for high limits |
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German
Frequently asked questions
Still have questions? Check these answers or get in touch.
Does standard home insurance cover Airbnb rentals in Spain?
Sometimes, but you can't assume it. Many standard policies are written for owner-occupied or long-term use, and short-term letting can be treated differently. The safest move is to declare the rental use and confirm in writing that guests and guest-related incidents are covered. Pay special attention to liability and unoccupied-property conditions, because those are where claims often become disputes.
Is Airbnb's host protection enough on its own?
It can help in certain scenarios, but it's not a full replacement for proper insurance. You still need cover that matches your property's structure, contents, local liability risks, and the way the home is managed. Treat platform protection as a back-up layer, not your main plan.
What's the biggest insurance risk for short-term rentals?
Liability and water incidents are the most painful, especially in apartments. A guest injury can turn into a liability claim, and a leak can affect neighbours fast. The second big risk is a claim being questioned because the insurer believes the short-term rental use wasn't disclosed or the property was unoccupied beyond allowed limits.
Can I insure a second home that I rent out to tourists?
Usually yes, but you must insure it as what it is: a second home with short-term rental use. That affects contents (furnished setup), liability (guests), and unoccupied periods (off-season). It's better to build the policy correctly upfront and avoid disputes later.
Do I need a tourist license (Vivienda de Uso Turístico) to get insurance?
Technically, you can get insurance without one, but operating without the required license is illegal in most Spanish regions. If you make a claim and it's discovered you were operating illegally, insurers may refuse to pay. Always get your license first, then arrange proper insurance.
How much liability cover do I need for a short-term rental?
For apartments, €300,000 minimum is typical, but €600,000+ is better. For larger villas with pools, €1 million+ is recommended. Guest injuries, especially around pools, balconies, or stairs, can result in significant claims. The premium difference between €300,000 and €600,000 is usually small.
What happens if a guest causes damage and doesn't pay?
If you have accidental damage cover that includes guest-caused damage, your insurer may pay (minus excess). You can then try to recover from the guest or platform protection. Without this cover, you're relying entirely on Airbnb's resolution process or taking the guest to court, which is rarely practical.
Are pools covered under short-term rental insurance?
Pools can be covered, but they add complexity. You need adequate liability cover for pool-related injuries, and the pool itself should be included in your buildings sum insured. Some policies require safety features (fencing, covers) to maintain full coverage. Always declare the pool when getting quotes.
What's the unoccupied period limit for rental properties?
Standard policies often limit cover after 30–60 consecutive days empty. Short-term rental policies typically allow longer gaps (90+ days) or have more flexible wording. Off-season owners should check this carefully—a claim during an extended vacancy could be reduced or declined.
Do I need to inform my community of owners (comunidad) about short-term rentals?
In many cases, yes. Some communities have bylaws restricting or prohibiting tourist rentals. If your rental activity violates community rules and causes an incident, it could complicate your insurance claim. Always check your community's statutes before starting.
Can I switch from regular home insurance to short-term rental cover mid-policy?
Most insurers allow mid-term changes, though some may require a new policy. Contact your current insurer to declare the change in use. If they don't cover short-term rentals, you'll need to find a specialist provider. Don't wait until you have a claim to make the switch.
What documentation should I keep for insurance purposes?
Keep: property inventory with photos and receipts, guest check-in/check-out records, tourist license documentation, maintenance records (especially for gas, electrical, pools), any incident reports or guest communications. These help prove your claim and show proper property management.
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