Are you finally ready to get started in seasonal rental but you only have one step left to take, that of home insurance? Too many choices, too complicated to understand? Don't worry, our Airbnb concierge in Arcachon explains everything you need to know about home insurance to properly protect your seasonal rental.
Is home insurance compulsory for seasonal rentals?
Neither the tenant nor the owner are obliged to take out specific insurance when they sign a seasonal rental contract. Nevertheless, there are certain options for each of the parties to secure the seasonal rental, which constitutes an additional risk in its own right. It is better to put the odds on your side and ensure yourself as much as possible to mitigate any disaster, and to be able to enjoy your seasonal rental for as long as possible.
You are still obliged to be covered in civil liability. No insurance means you are not protected if someone damages your short-term rental, gite or holiday apartment. It would also mean that your tenants have no protection if, for whatever reason, they are injured in your home. As you will have understood, having an insurance contract that guarantees the protection of your short-term rental may not be mandatory, but it is nonetheless essential if you want to sleep on your two ears.
Home insurance, a necessary guarantee for seasonal rentals
If you do not take out insurance, you risk finding yourself in serious difficulty at the slightest unforeseen event causing damage to your property, such as water damage, fire or worse, an explosion. Worse still, if damage is caused to a neighbor, you are also responsible. Thus, although it is not mandatory, it is strongly recommended, as Nora Le Faou, director of our Concierge Arcachon : "The unexpected happens all the time, so you have to anticipate them as much as possible in order to avoid any inconvenience".
Nothing obliges you to take out insurance that also covers the tenant. You can, if you decide, insure only your property. Although in general, a tenant has a holiday guarantee clause in his home insurance contract, it remains more prudent to contract, for your seasonal rental, a home insurance called “on behalf of whom it will belong”. This insurance will be valid for the owner and for the tenant. Thus, you will be covered in the event of fire or water damage.
Which home insurance contract to choose for your seasonal rental?
The so-called “on whose behalf it will belong” guarantee is not the only one that exists. You can also take out insurance with a clause called “waiver of recourse”. This only covers damage caused by tenants to the owner's home. They do not cover damage caused to people or neighboring buildings. The civil liability of the tenant therefore remains engaged away from third parties other than the owner. If you choose this insurance, remember to notify your tenants so that they take out insurance that can cover them on their side.
You can also take out non-occupant owner (PNO) insurance, which is best suited to people who own an apartment and place it for seasonal rental. It is very important to take out insurance for your vacation rental accommodation. Many insurers consider making money by renting out property to be a business. Thus, a basic insurance policy could be invalidated. Find out as much as possible from your insurer before starting the process to avoid being trapped.
Home insurance, also compulsory for second homes?
Do you own a second home that you would like to put up for seasonal rental? The rule is the same, taking out home insurance is not mandatory but strongly recommended. The risks still exist, you are not immune to an incident, even when your property is not rented. This is particularly the case for claims such as theft, burglary or vandalism. Indeed, the fact of not occupying this secondary dwelling all year round exposes him more to this type of disaster. If your property is located in an isolated place and seems of high value (a house or a villa), the risks are higher.
You can insure your second home before putting it up for seasonal rental with several types of guarantee:
The “property damage” guarantee
It covers your property against damage that could be caused to it: breakage, alteration, destruction, etc. This guarantee is essential for being compensated in the event of a claim, whether it concerns your movable property or precious objects. Be careful not to overestimate the value of your movable capital to avoid too high a premium, nor to underestimate it to be compensated correctly.
The "theft, burglary and vandalism" guarantee
It is not necessarily included in the basic MRH insurance, but this guarantee is important to cover your precious possessions. Check that the inhabitation clause is excluded from the contract or does not imply an expensive warranty extension. Your insurer may also require you to install an alarm system.
The “recourse from neighbors and third parties” guarantee
It covers damage caused by the property to the neighbors of the residence or to a third party (collapse of a facade on the neighboring wall, for example).
The "civil liability" guarantee
Already included in the home insurance of the main residence if you have taken out a contract, it is not essential to take it out also for the secondary residence.
What about vacation rental platform insurance?
Seasonal rental platforms such as AirBNB offer insurance to owners of furnished tourist accommodation as well as to tenants. The American company, for example, offers civil liability coverage that can reach 800 euros per claim in the event of legal action brought by third parties for bodily injury or material damage. However, this insurance is not free but charged at 000% in the service charge on each booking. Other seasonal rental platforms offer similar insurance, but which are ultimately not very advantageous for owners.
Indeed, nothing beats a real home insurance specific to your seasonal rental accommodation. On the AirBNB forums, several owners who have used the site's insurance are not always satisfied. “The activation of the guarantee is not very clear, explains Nora Le Faou, director of the Arcachon conciergerie. It intervenes according to criteria specific to AirBNB, generally as a last resort, which limits its interest”. Especially since AirBNB emphasizes that the host guarantee does not replace home insurance, but is intended to reassure owners.
Home insurance: advice from our concierge Arcachon
Before choosing your home insurance contract, do not hesitate to contact several insurers to ask them for quotes. You can also use comparators to help you in your choices. "Each insurer will be able to offer you the best possible solution," says Nora Le Faou, director of our Arcachon concierge service. Study all the offers and inform yourself as much as possible to avoid disappointment”. In addition, a comparator will allow you to save a few euros by offering you insurance policies at the best price. Do not forget to inform your future tenant of the type of insurance to which you have subscribed so as not to find yourself in a bad situation.
Properly insuring your home to protect your seasonal rental can quickly turn out to be a headache. Take the time to reflect, compare several offers and do not rush to make your choice. Although it is not compulsory, taking out home insurance for a seasonal rental is strongly recommended in order to avoid the slightest problem, and to be insured if necessary. Whatever your choice, always advise your tenants about your insurance so that you do not find yourself in difficulty in the event of damage or vandalism.
