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PROPERTY

Reader question: What’s the latest on Italy’s building superbonus?

Italy’s building ‘superbonus’ has been in the news again after a vote on a new amendment. So what exactly is changing this time and what does this mean for homeowners?

Published: 27 May 2024 15:53 CEST
Updated: 1 June 2024 08:19 CEST
A view of construction works in the outskirts of Rome
A view of construction works in the outskirts of Rome. Photo by Andreas SOLARO / AFP

If you’re reading this article, there’s a good chance you’re already familiar with at least some of the history behind Italy’s ‘superbonus’, a hugely popular government scheme offering generous discounts to homeowners carrying out renovation works.

The bonus has been in the news again this week after parliament approved a new amendment last Wednesday, leaving many homeowners wondering exactly what is changing this time and what this means for them.

The superbonus has been plagued by credit transfer issues ever since 2021, when banks stopped buying up credits following the introduction of tighter rules aimed at preventing fraudulent claims. 

This created major bottlenecks within the system which ended up stalling thousands of renovation projects and leaving thousands of construction businesses at risk of bankruptcy.

Blocked credits and the scheme’s rising costs (the superbonus’ bill may ultimately stand at 150 billion euros, more than 100 billion over initial estimates) led the government to first slash the maximum available rebate and then scrap the most popular claiming routes for all new claims.

READ ALSO: Can you still buy Italy’s one-euro homes in 2024?

But after some national banks resumed buying credits last summer, albeit under stringent conditions, the changes approved by parliament last week may once again bring the transfer system to a standstill, putting homeowners and businesses at risk of not being able to claim the bonus (or not doing so in time to avoid default).

As of January 1st 2025, banks and other financial intermediaries will no longer be able to offset superbonus credits bought from homeowners or businesses with social security (INPS) and occupational insurance (INAIL) contributions, according to the latest decree.

Scaffolding on the facade of a building undergoing renovation work in Rome

Scaffolding on the facade of a building undergoing renovation work in Rome. Photo by Tiziana FABI / AFP

This is under plans to prevent superbonus-related fraud (Italy seized ‘fake’ credits for a total of 8.5 billion euros last week), with banks flouting the rule facing fines of up to 30 percent of the unduly offset credit.

The ban will essentially strip banks of one of the most popular instruments used so far to ‘digest’ superbonus credits and will be retroactive, meaning it will apply to credits accrued prior to its introduction next January.

According to Antonio Patuelli, president of Italy’s banking association ABI, banks “will absolutely have to stop” buying superbonus credits as a result of the measure, which in turn may land businesses and homeowners “in situations leading them to default”.

Italy’s campaign group Associazione Esodati del Superbonus has estimated that some 1.5 million families may be left without a way to claim the rebate if no alternative solution is found. 

Last Wednesday, Patuelli stressed the importance of creating “an instrument” capable of purchasing blocked credits and involving both public and private parties.

READ ALSO: Five things non-residents need to know about buying property in Italy

The right-wing Forza Italia party – a member of Italy’s ruling coalition – has also recently advanced plans for the creation of a new credit institution directly controlled by the Ministry of Economy and Finance (MEF), though there are no further details on the proposal at present. 

Plans to create a credit-trading platform to unclog blockages are by no means new.

Last April, the government identified the creation of a new trading platform by energy giant Enel X as one of the main solutions to the logjam, but the project was permanently scrapped in early September.  

Blocked or as-yet-unclaimed credits relative to all of Italy’s building bonuses were estimated to stand at a total of 135 billion last November.

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MONEY

What insurance is available for owners of holiday lets in Italy?

Protecting yourself and your property against unforeseen events may well be your top priority when renting out your second home in Italy – but there’s no one-size-fits-all insurance plan for owners.

Published: 2 July 2024 15:55 CEST
Updated: 6 July 2024 07:22 CEST
What insurance is available for owners of holiday lets in Italy?

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. 

A view of Alberobello, a village famous for its traditional 'trulli' houses in Puglia

A view of Alberobello, a village famous for its traditional ‘trulli’ houses in Puglia. Photo by Piero CRUCIATTI / AFP

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.

Hoses pump water out of a building in Venice following a severe high tide event.

Hoses pump water out of a building in Venice following a severe high tide event. Photo by Filippo MONTEFORTE / AFP

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. 

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