Short- and medium-term rental insurance

1 February 2024 Blog

What does it take to get into compliance?

The motto you hear most in the world when choosing to take out any kind of insurance is “prevention is better than cure” a quote expressing the thoughts of Bernardino Ramazzini, considered the father of occupational medicine.

Here, as Bernardino would say, no one is forcing you to take out a home insurance policy, but still the advice is to take this step, no matter how unnecessary it seems: today we will change your mind by telling you about all the advantages of having insurance.

Disclaimer: We are not selling policies, these are simply tips.

As we said,insurance for short- or medium-term rentals offers a range of guarantees that vary according to individual needs, but it generally covers risks of different kinds involving the homeowners, guests and the apartment itself. We would also like to remind you that when theactivity is carried out as a business, they are required by law to take out a Public Liability ( TPL ) policy as provided by the legislative decree May 23, 2011, no. 79.

Liability insurance that protects owner and guests

A liability policy, as the name implies, is meant to protect the insured from legitimate claims under the Civil Code, which put simply means that if theinsured is held liable for damages to a third party, this insurance pays for the damages instead.

What is included in the RC?

Each insurance obviously stands on its own, so let’s not lump everything together, but generally there are conditions that must be included, whatever type of vacation rental you have:

Cover claims that are directly dependent on the house
cover damage to other people’s property
must also extend to laborers: cleaning, maintenance or other personnel.
Cover claims that caused by guests

Simplified, this is a policy that covers the landlord from any damage caused to the property, or what is inside, by the tenant or disasters such as fire, flooding, theft, vandalism, or others. In addition to all this,insurance may also cover non-payment of rent and legal fees for any disputes.

What if a guest gets hurt? Well again, it is possible for the policy to cover any medical expenses.

Of course all this information is only partial, as we said at the beginning, you can take out RC with much more conditions, it all depends on the type of business you have.

Costs and benefits of short- and medium-term rental insurance

Short- and medium-term rental insurance offers advantages for both landlord and tenant because it provides greater security, peace of mind, and protection from unforeseen contingencies, damage, or litigation, but we realize that sometimes it could be a major expense.

To date, we cannot give you an exact figure, as costs vary depending on the type of apartment, length of tenancy, coverage, and the insurance company chosen. In general, we can estimate that the cost of a policy for the landlord is between 2 percent and 5 percent of the annual rent, while the cost of a policy for thetenant is between 3 percent and 10 percent of the monthly rent.

What is certain is that it is worth the expense: this is because it shows, on the part of the tenant, a seriousness, inspiring a sense of trust and credibility.

Home insurance: extension of liability

Yes okay, now rightly you will say, but what about theapartment? Is that the instrument through which it is possible to carry on the activity, is there not something additional for that? Well, yes, it is possible. In fact, almost a duty if you want to keep it in the best condition and not find yourself unpleasant surprises of unplanned renovations. If you think about it, the people who take turns inside a house, especially when we are talking about short- and medium-term rentals, are many, so the probability of something happening to the house is high.

Already know, however, that wear-and-tear damage is uninsurable; what is possible instead is a policy covering damage, theft, fire, water infiltration, weather, and catastrophic events.

Each insurance company then has its own types of policies to offer, what you can do is to consult several of them to get an idea of what the market has to offer you: figure out which policy is right for you and make the choice that suits you best. Do not be in a hurry to decide; this is a choice that needs to be thought through thoroughly.

We make sure everything stays clear

To close this article, we want to tell you that in any case for any doubts, the solution is always to rely on people who are experts in the field, who are able to follow you and support you in the choice of your entrepreneurial activity or not. For this reason, and for many others, Travel Inside has chosen to be by your side, step by step: we want to be your partner in this adventure, advising you and personally taking care of all those bureaucratic chores that might discourage you from embarking on short- or medium-term renting.