Airbnb or seasonal rental? Even for just a few weeks, adapt your insurance: liability, property damage, tenant damage, vacancy. Check the terms and conditions, inform your insurer, and be protected.
Are you considering renting out your property occasionally—through a platform like Airbnb, or for a few weeks a year to vacationers or tourists? Short-term rentals can be an attractive source of income, but they also come with specific risks that need to be covered. This article will guide you in choosing the right insurance, identifying essential coverages, and avoiding unpleasant surprises as an occasional landlord.
1. What does "short-term rental" encompass for an occasional landlord?
- We speak of "short term" when the accommodation is offered for a temporary stay (a few days to a few months) and the use differs from that of a classic lease of one year or more.
- There is no general legal obligation requiring a specific insurance contract for each short-term rental, but many requirements should be anticipated.
- Occasional landlords should carefully check whether their home insurance or PNO (Non-Occupant Owner) contract is compatible with seasonal or short-term rentals.
2. Why the cover needs to be adapted
- Frequent change of tenants, intensive use of the accommodation and sometimes overloading of equipment increase the risk of disaster (theft, water damage, damage to property).
- Some "classic home" contracts explicitly exclude or do not automatically cover short-term rentals or damage caused by a tenant.
- In the event of an inadequately covered claim, the landlord may be required to pay for repairs, or have their liability invoked.
3. Essential guarantees to provide for an occasional landlord
3.1 Owner's Civil Liability
Even in short-term rentals, civil liability insurance covers damages caused to third parties (neighbors, passers-by, tenants) resulting from an incident related to the accommodation.
3.2 Damage to property and housing
- Fire, explosion, water damage: essentials.
- Theft or vandalism: the movement of tenants increases this type of risk.
3.3 Damage caused by the tenant
The landlord must ensure that their contract covers intentional or unintentional damage caused by short-term tenants.
3.4 Rental vacancy and unoccupancy
If the accommodation is empty between two stays, the coverage must take into account vacancy or periods without a tenant.
3.5 Insurance "for the benefit of whomever it may concern"
This type of contract allows the owner to directly cover damages caused by any tenant, without the tenant having to take out a separate policy.
3.6 Legal protection
In the event of a dispute with a tenant (non-compliance with rules, damages, late check-out…), this guarantee can be useful.
4. Clauses to check carefully
- Short-term rental use vs. standard lease : some contracts exclude "tourist" or "seasonal" use.
- Number of rental days per year : in some municipalities, short-term rental of an entire dwelling is limited (e.g., 120 days/year)
- Furniture, equipment and outbuildings : a furnished property must have its movable property taken into account in the insured value.
- Exclusion of coverage if non-declaration or non-compliance with the clauses : failure to inform the insurer of the rental may result in a refusal of compensation.
- Declaration to the town hall / platform : neglecting local formalities can complicate the process.
5. Best practices to optimize your coverage
- Carry out a precise and photographic inventory of fixtures at each tenant's arrival and departure.
- Provide proof of insurance to the platform or the tenant if requested.
- Inform your insurer of your intention to rent for short periods, and request a "seasonal rental" endorsement.
- Compare the offers: occasional use = higher risk, but limited duration = possibility of a more adjusted price.
- Put in place preventative measures : alarm, access control, surveillance, clear rules of conduct for tenants.
Conclusion
Renting your property out for short stays can be very profitable—provided you have the right coverage. As a short-term landlord, you need to tailor your insurance to this specific context: frequent tenants, increased usage, and higher risks. With KT Assur&Bank, you can obtain personalized coverage, adapted to short-term rentals, to effectively protect your property while generating income with peace of mind.