If you own a second home in Italy and you’re planning on renting it out to holidaymakers when you’re not there, taking out an insurance policy to protect yourself and your property against unforeseen events is one of the first and most important things you’ll have to consider.
Though contracting an insurance policy on a holiday let is not a requirement in Italy except in some specific cases (see more below), doing so is strongly advisable.
Even the most mindful and considerate of guests can sometimes cause accidental damage to your property or belongings during their stay, especially if they happen to have small children or pets.
But taking out an insurance plan can also protect you from expensive claims made against you by guests in the event of injuries or damage suffered while in the property.
Though insurance policies for vacation rentals are grouped together under the umbrella term of assicurazione casa vacanze (holiday home insurance), there’s no one-size-fits-all plan and homeowners are granted the freedom to tailor their policies to their particular needs, as well as the features of their property.
Third-party liability coverage
The polizza di responsabilità civile (literally, ‘civil responsibility policy’) is considered the most basic type of plan you can take out on your second home.
This covers the costs associated with injury or damage suffered by guests during their stay in your property as well as any legal defence expenses you may face.
To make a practical example, if a bookshelf in your home suddenly collapses, injuring one of the guests, this policy will cover the medical expenses faced by the guest as well as the costs of any legal proceedings you may be involved in.
READ ALSO: Is now a good time to buy a home in Italy?
It’s worth noting here that if you’re renting out your property through popular online platforms such as Airbnb, your home will in most cases be automatically covered by a liability policy managed directly by the platform.
For instance, Airbnb has its own AirCover policy, which offers homeowners free-of-charge third-party liability coverage for claims of up to one million dollars.
That said, most platform-managed liability policies will only apply to bookings made directly through the platform, meaning that if you rent your property via any other channel, you’ll have to take out a separate plan.
The cost of a basic responsabilità civile plan generally hovers around 150 to 200 euros per year.
Is a third-party liability plan mandatory?
Under Italy’s tourism laws, a liability insurance policy is only mandatory if you rent out your property as part of an ‘entrepreneurial activity’, meaning a registered business with a partita IVA (VAT number).
If you’re a private citizen occasionally renting out your second home to partly offset property costs and this is not your main professional occupation and source of income, you won’t be required to take out a liability policy (though you may still consider getting one for the reasons explained above).
If you have doubts on whether or not your activity qualifies as ‘entrepreneurial’, you’re advised to get in touch with a legal expert.
Damage insurance
A basic liability policy won’t protect you against damage to your own property or belongings, which is why homeowners tend to complement this with a damage policy (assicurazione danni).
This essentially covers the costs of material damage suffered by your property’s structure and contents, whether that be caused by guests or external factors. These can include fires, explosions, leakage, clogged drain pipes, burglary and vandalism acts depending on the type of plan you choose.
It’s worth noting that standard assicurazioni danni don’t generally cover damage caused by major natural disasters such as earthquakes and flooding.
If your property’s located in an at-risk area, most insurance providers will allow you to add natural disaster coverage to their damage plans.
READ ALSO: Reader question: Should I insure my Italian home against flood or earthquake damage?
Third-party liability coverage and damage coverage against the most common types of external factors are often sold as part of a single insurance package marketed as assicurazione multirischio (multi-risk insurance). Here, prices range from 200-250 euros per year for the most basic plans to 600-700 euros for more comprehensive plans.
Once again, if you’re renting out your property through some of the more popular online platforms, your home will in most cases be automatically covered by some type of damage policy managed directly by the platform.
For instance Airbnb’s AirCover policy covers damage of up to 3 million dollars caused directly by guests (but does not cover damage caused by external factors).
Theft
Many standard insurance packages already provide coverage against theft. If that’s not your case, you can ask for an assicurazione furto (theft insurance) to be added to your plan.
However, this type of coverage only applies to break-ins (furto con scasso) and not to theft on the part of guests.
The presence of a short-term rental agreement (either signed in physical form or implicitly agreed upon via an online platform) between owner and guests makes it impossible under Italian law to consider acts of theft from guests as theft per se as these can only be categorised as misappropriation (appropriazione indebita).
To protect yourself against misappropriation, you can add a polizza di tutela legale (legal protection policy) to your package. This will cover legal expenses in a lawsuit for misappropriation filed against a guest.
Picking the right provider
It’s advisable to do at least some level of in-depth online research when choosing your second home insurance plan in Italy as there are nearly 100 different providers across the country.
Also, as appealing as it may be, simply opting for the cheapest coverage on the market may mean that you don’t get the product that’s right for you or your property.
READ ALSO: Five expensive mistakes to avoid when buying a house in Italy
When picking your insurance provider, it’s advisable to check customer reviews, feedback scores, and ratings beforehand, as well as enquire about the claims process and cancellation policies with the relevant company.
Some providers also offer discounts or incentives for homeowners improving home safety measures or eliminating risk factors.
All forms of insurance in Italy are regulated by the Italian Insurance Supervisory Authority (IVASS). Make sure that the provider you turn to figures on the IVASS register.
Member comments