Landlord Insurance in Spain – Long-Term vs Holiday Rentals (2026)
Complete 2026 protection guide for rental property owners: long-let and holiday-let coverage, legal requirements, tenant protection, typical costs (€200-600 base + €80-300 holiday let add-on), and common mistakes.
Quick Answer (TL;DR)
Landlord insurance in Spain costs €200-600 annually for long-let base cover, with holiday-let endorsements adding €80-300/yr. Policies must match property use: long-let (arrendamiento de vivienda) or holiday let (vivienda de uso turístico). Long-let adds loss of rent, malicious damage, legal defense. Holiday lets need short-stay endorsement, guest liability, higher contents limits, and tourist license compliance.
- Building structure, landlord liability, loss of rental income (after insured peril)
- Malicious damage by tenants, legal expenses for disputes & evictions
- Holiday lets: short-stay endorsement, guest liability, theft without forced entry often excluded
- Tourist license & local regs compliance required (extinguishers, signage)
Quick Answer (TL;DR)
Landlord insurance in Spain costs €200-600 annually for long-let base cover, with holiday-let endorsements adding €80-300/yr. Policies must match property use: long-let (arrendamiento de vivienda) or holiday let (vivienda de uso turístico). Long-let adds loss of rent, malicious damage, legal defense. Holiday lets need short-stay endorsement, guest liability, higher contents limits, and tourist license compliance.
- Building structure, landlord liability, loss of rental income (after insured peril)
- Malicious damage by tenants, legal expenses for disputes & evictions
- Holiday lets: short-stay endorsement, guest liability, theft without forced entry often excluded
- Tourist license & local regs compliance required (extinguishers, signage)
What Landlord Insurance Covers (By Scenario)
Landlords – Long-Let (Arrendamiento de vivienda)
For traditional long-term rentals (6-12+ months), you need everything a second-home owner needs, plus specific landlord protections:
Standard Long-Let Coverage
- Building structure (walls, roof, fixtures)
- Landlord liability (injuries on property)
- Loss of rental income (after insured peril)
- Malicious damage by tenants
- Legal expenses & eviction support
- Appliance breakdown (optional)
Optional Add-ons (Long-Let)
- Contents insurance for furnished lets
- Extended rent guarantee coverage
- Property owner protection (rent arrears)
- Boiler and appliance breakdown
- Increased liability limits
Holiday Lets / Tourist Rentals (Vivienda de uso turístico)
Short-stay properties (Airbnb, Booking.com, etc.) need explicit holiday-let endorsements:
Essential Holiday-Let Coverage
- Short-stay endorsement (guest turnover)
- Guest liability (injuries to guests on premises)
- Higher contents limits for repeated occupancy
- Compliance with tourist license & local regs
Holiday-Let Exclusions (Often)
- ⚠Theft without forced entry may be excluded
- ⚠Loss of rent without damage (platform issues)
- ⚠Illegal or unlicensed tourist rental activity
- ⚠Guest negligence without guest liability add-on
Fire damage is a major concern for rental properties
Rental properties face elevated fire risks, especially during vacancy periods between tenants. Fire damage claims can be complex and costly. Read our landlord-focused guide to fire damage restoration to understand costs (€2,000–€50,000+), timelines, and how to navigate insurance claims effectively.
Typical Costs (2026)
Landlord insurance premiums vary based on property type, rental scenario, and several risk factors. For a detailed comparison of what's included in base policies, see our buildings and contents insurance guide:
| Scenario | Annual Cost |
|---|---|
| Second home (no rentals) | €120–€500/yr (see Second Home guide) |
| Long-let add-ons | +€60–€250/yr (loss of rent, legal defense) |
| Holiday let endorsement | +€80–€300/yr (depending on frequency & region) |
Common Pitfalls to Avoid
Wrong usage declared
Insuring a holiday let as a standard long-let (or vice versa) creates claims risk. Always disclose rental activity.
Underinsuring the Building
Insure for full rebuild cost, not market value. Underinsurance means proportional claim payouts.
Ignoring Holiday Let Requirements
Short-term rentals need specialist policies or endorsements. Standard landlord insurance won't cover holiday lets.
No loss-of-rent protection
One claim can wipe out a season's income. Loss-of-rent cover (6-12 months) often pays for itself.
Skipping Legal Expenses Cover
Tenant evictions can cost €3,000-10,000 in legal fees. This optional cover often pays for itself.
Landlord Insurance Costs by Region (2026)
Premiums vary significantly based on location, property type, and rental use. Here are typical annual costs:
| Region | Long-Let (Base) | Holiday-Let Add-on | Total Holiday-Let | Notes |
|---|---|---|---|---|
| Costa del Sol (Málaga) | €250–€450 | +€100–€200 | €350–€650 | High holiday rental demand |
| Costa Blanca (Alicante) | €220–€400 | +€90–€180 | €310–€580 | Strong expat landlord market |
| Barcelona | €300–€550 | +€120–€250 | €420–€800 | Strict tourist license rules |
| Madrid | €280–€500 | +€100–€220 | €380–€720 | Strong long-let market |
| Balearic Islands | €280–€480 | +€130–€280 | €410–€760 | Very strict licensing, high season risk |
| Canary Islands | €200–€380 | +€80–€160 | €280–€540 | Year-round rental income potential |
Note: Prices based on €150,000–€300,000 rebuild value apartment. Villas and higher values cost more. Claims history and security features affect premiums.
Long-Let vs Holiday-Let Insurance: Complete Comparison
Understanding the differences helps you choose the right coverage for your rental strategy:
| Feature | Long-Let Insurance | Holiday-Let Insurance |
|---|---|---|
| Rental Duration | 6+ months typically | Days to weeks |
| Tenant Screening | Full references expected | Platform reviews only |
| Loss of Rent Cover | Up to 12 months (after peril) | Booking cancellation cover |
| Tenant Damage | Malicious damage covered | Guest damage covered |
| Liability Limits | €300,000–€600,000 typical | €600,000–€1,500,000 typical |
| Contents Cover | Optional add-on | Usually included (furnished) |
| Theft Requirements | Forced entry required | May exclude theft by guests |
| Legal Expenses | Eviction + disputes | Guest disputes + licensing |
| License Required | Standard rental contract | Tourist license mandatory |
| Typical Annual Cost | €200–€600 | €300–€800 |
Landlord Insurance Claims Process in Spain
Knowing the claims process before you need it helps you respond correctly and maximize your payout:
Document the Damage Immediately
Take photos/videos of all damage before any cleanup. Create an inventory of damaged or stolen items with approximate values. Get witness statements if applicable.
Report to Authorities (If Required)
For theft, vandalism, or tenant damage: obtain a police report (denuncia). For fire or water damage: notify emergency services and keep incident reports.
Notify Your Insurer Within 7 Days
Call the 24/7 claims line or submit online. Provide policy number, description of incident, and preliminary damage estimate. Request a claim reference number.
Assessor Visit (Perito)
For significant claims, an assessor will inspect the property. Be present if possible. Provide access to all affected areas and share your documentation.
Repairs and Settlement
Use approved contractors for faster processing, or get multiple quotes for approval. Payment is typically made minus any excess. Timeline: 2-8 weeks for standard claims.
Loss of Rent Claims
For rental income claims, you will need: the tenancy agreement, proof of previous rental payments, evidence the property is uninhabitable (assessor report), and ongoing documentation until repairs complete.
Tourist License Requirements for Holiday-Let Insurance
Operating a holiday rental without proper licensing can void your insurance and expose you to significant fines:
Andalucía
- • Registration with Junta de Andalucía required
- • VFT number must be displayed on listings
- • Fines up to €150,000 for unlicensed rentals
Catalonia (Barcelona)
- • Very limited new licenses in Barcelona city
- • HUTB license number required
- • Fines up to €600,000 for violations
Balearic Islands
- • Strict moratorium on new licenses in many areas
- • ETV license with capacity limits
- • Heavy fines and license revocation risks
Valencia Region
- • Registro de Turismo Valencia registration
- • Different rules per municipality
- • Increasing enforcement since 2023
Insurance requirement: Most insurers will not provide holiday-let cover without a valid tourist license. Always obtain your license before purchasing specialist cover.
Getting Your Landlord Insurance
We specialize in landlord insurance for expat property owners in Spain. Our English-speaking team compares policies from leading Spanish insurers to find comprehensive coverage at competitive rates.
What we need:
- Property address and type (apartment, villa, etc.)
- Year built and approximate rebuild value
- Rental type (long-term, holiday let, or both)
- Current or expected rental income
- Any existing claims history
- Tourist license number (for holiday lets)
Response time: Same business day. Most quotes ready within 24 hours.
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, Swedish
Frequently asked questions
Still have questions? Check these answers or get in touch.
Is landlord insurance mandatory in Spain?
While not legally mandatory, landlord insurance is highly recommended and often required by mortgage lenders. It protects your investment and covers risks that standard home insurance policies don't address for rental properties.
What does landlord insurance cover in Spain?
Landlord insurance typically covers building structure, loss of rental income, landlord liability, legal expenses for tenant disputes, and optional contents insurance for furnished properties. Coverage varies by policy.
How much does landlord insurance cost in Spain?
Annual premiums typically range from €200-600 depending on property value, location, coverage level, and rental type (long-term vs holiday lets). Holiday rental properties usually cost more to insure.
Does landlord insurance cover tenant damage?
Yes, most landlord policies include coverage for malicious damage by tenants. However, normal wear and tear is not covered. Some policies require you to take tenant deposits as a condition of coverage.
Can I insure a holiday rental property?
Yes, but you need specialist holiday let insurance rather than standard landlord insurance. These policies account for higher risks associated with short-term rentals and more frequent guest turnover.
What is loss of rent coverage?
This covers your rental income if the property becomes uninhabitable due to an insured event (fire, flood, etc.) or if tenants stop paying rent. Coverage periods typically range from 6-12 months.
Do I need landlord insurance if I have home insurance?
Yes. Standard home insurance assumes owner-occupation and will not cover rental-specific risks like tenant damage, loss of rental income, or landlord liability. You must inform your insurer if you rent out the property.
Does landlord insurance cover legal fees?
Most policies include legal expenses coverage for tenant disputes, eviction proceedings, and property-related legal issues. Coverage limits typically range from €25,000-50,000 per claim.
What is the difference between long-let and holiday-let insurance?
Long-let insurance covers traditional rentals (6+ months) with focus on tenant damage and rent arrears. Holiday-let insurance covers short-term rentals with higher liability limits, guest damage, and tourist license compliance.
Do I need a tourist license for holiday rental insurance?
Yes. Most insurers require proof of a valid tourist license (licencia turística) to provide holiday-let coverage. Operating without a license may void your policy and expose you to fines up to €600,000.
How do I make a landlord insurance claim?
Report to your insurer immediately, document all damage with photos, obtain police reports for theft or vandalism, keep all repair receipts, and submit your claim within the policy timeframe (usually 7-30 days).
Can I insure a property managed by an agency?
Yes. Many landlords use property management agencies. Ensure your policy covers professional management and that the agency has appropriate liability insurance for their own activities.
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