Seasonal rentals are all the rage. Whether you’re offering a family vacation home, a seaside villa or an exceptional property with a swimming pool, renting out your property on a short-term basis can generate interesting income… as long as you understand what kind of seasonal rental insurance you need.
And yet, many owners still underestimate the importance of proper insurance coverage. Between the guarantees included in standard home insurance policies, options specific to furnished tourist rentals, and platforms like Airbnb that advertise automatic coverage, it’s sometimes hard to see clearly.
In this article, we take a look at the options available to you, the best practices to adopt and the pitfalls to avoid so that you can rent out your property with complete peace of mind.
Why insuring a vacation rental is essential
Renting a property on a short-term basis is nothing like renting it on a year-round basis. The risks are different: frequent tenant turnover, more intensive use, unfamiliarity with the premises, domestic accidents, disputes over security deposits…
Owner of a seasonal rental property = committed liability. In the event of fire, water damage, injury to a traveler on your property or even theft, you need to be able to rely on solid coverage, otherwise the consequences can be severe – financially, but also legally. The question then becomes: which holiday rental insurance should you choose?
Comprehensive home insurance: is it enough for seasonal rentals?
Many homeowners assume that their home insurance is sufficient. This is rarely the case.
Most standard multi-risk home insurance policies offer little or no cover for short-term tourist rentals. And when they do, it often requires an extension of cover or a specific declaration to the insurer.
Check carefully:
To answer this question, it’s essential to explore the various insurance options available to guarantee the security of your real estate investment.
- If your contract explicitly mentions short-term furnished rental.
- If third-party liability is included.
- If vacancy periods are covered (periods without tenants).
- Whether damage caused by third parties (tenants, contractors, visitors) is covered.
If in doubt, ask for a usage extension or opt for specific insurance.
Non-occupant owner (PNO) insurance: tailor-made coverage
PNO insurance is undoubtedly the most suitable if you rent a property that you don’t live in (second home, rental investment, etc.).
It covers :
- Property damage (fire, water damage, vandalism, etc.)
- The owner’s civil liability
- Claims in the absence of tenants
- Sometimes even loss of rent (optional)
This is an insurance policy in your name, independent of the insurance policies taken out by tenants.
💡 Some PNO contracts are specifically designed for seasonal rentals. Don’t forget to compare offers.
What about tenant’s insurance?
For seasonal rentals, there is no legal obligation for the tenant to take out insurance. However, as the owner, you can :
- Demand proof of holiday insurance, often included in their comprehensive homeowner’s policy.
- Suggest that they take out temporary insurance for the duration of their stay, often available online at affordable prices.
This cover can reimburse damage caused during their stay, and makes it easier to deal with disputes.
🔒 Good idea: add a specific clause to the seasonal rental contract requiring this certificate. In the absence of coverage, specify that they may be held personally liable.
Are Airbnb owners already insured? Putting coverage into perspective
Airbnb highlights its AirCover program, which includes:
- Civil liability up to $1 million
- Property damage coverage up to $3 million
But be careful:
- This insurance is conditional on booking via their platform.
- It does not replace conventional insurance
- It is activated as a last resort, only if you have not found a solution with the traveler.
- There is often a great deal of proof to be provided, and partial reimbursements are not always possible.
In short, AirCover is a safety net, but it’s far from sufficient, especially if you’re managing luxury villas.
Second home: think about specific coverage
Do you occasionally rent out your second home? You need the right insurance.
Two solutions:
- Take out a dedicated policy covering the house, its contents, rental risks and your liability.
- Extend your main insurance to include your second home (via a multi-risk extension). It’s often quicker, but less comprehensive.
Points to check:
- Coverage in the event of theft or vandalism
- Coverage for damage caused by tenants
- Deductible amounts
- Waiver of recourse clause ( to protect your tenants as well)
How do you choose the right insurance for your holiday rental?
1. List your real needs
Every property is unique. A villa by the sea will not have the same risks as an apartment in the city. Here are the main guarantees to consider:
- Fire, water damage, glass breakage
- Theft and vandalism
- Civil liability
- Damage caused by tenants
- Loss of rent or last-minute cancellations
- Legal assistance
2. Compare specialist insurers
Some insurers have designed packages specifically for vacation rentals or second homes. Here are a few of them:
- Luko
- Acheel
- Allianz
- MAIF
- MACIF
- GoFriday
- Groupama
- AXA
- MMA
⚠️ Always compare equal coverage (amounts, exclusions, deductibles).
3. Use online comparators
Tools such as LeLynx.fr, LesFurets.com or lecomparateurassurance.com allow you to quickly obtain personalized quotes.
And for top-of-the-range villas? Higher standards
If you’re the owner of a prestigious villa, your insurance needs to match the value of your property.
Remember to :
- Replacement cost insurance for furniture and equipment
- Cover for works of art or collectors’ items
- Special care for pools, spas, jacuzzis and outdoor equipment
- Coverage for damage caused by service providers (chef, housekeeper, etc.)
Some insurers, such as Chubb, Generali Patrimoine, Hiscox and SwissLife, offer tailor-made policies for luxury properties.
Rental contract and insurance: an essential duo
Good insurance is no substitute for a clear and comprehensive rental contract. This document must stipulate :
- Tenant obligations (maintenance, normal use, etc.)
- The amount of the security deposit
- Whether or not you have tenant’s insurance
- Cancellation conditions
Add a joint inventory of fixtures on arrival and departure to avoid disputes.
In a nutshell: the right reflexes to adopt
✅ Don’t settle for Airbnb AirCover insurance
✅ Check your home insurance policy or take out a PNO
✅ Demand proof of holiday insurance from your tenants
✅ Compare insurers’ offers by type of property
✅ Protect yourself contractually with a solid lease and a complete inventory of fixtures.
Protecting your seasonal rental means protecting your assets
You’ve invested in a quality property. Offering a top-of-the-range experience to your tenants also requires rigorous, far-sighted management, of which insurance is a key component.
Renting without proper insurance means taking an unnecessary risk, especially when the market is becoming increasingly professional.
As a responsible owner, take the time to check your warranties,anticipate unforeseen events, and secure your business.
