Why Standard Insurance Does Not Work for Holiday Homes
This is one of the most common and costly mistakes that foreign property owners in Spain make. They arrange a standard Spanish home insurance policy — often through the developer or estate agent at the time of purchase — and assume they are fully covered. But standard policies in Spain almost always include a vacancy or unoccupancy clause that significantly reduces or entirely removes cover if the property is left empty for more than a set period, typically 30 to 60 days.
If your Spanish property is your holiday home and you visit two or three times a year, your property is almost certainly unoccupied for more than 30–60 days at a stretch for most of the year. This means that when you need your insurance most — when something goes wrong while you are not there — you may not be covered.
Holiday home insurance is specifically designed for this situation. It maintains cover throughout the periods of unoccupancy and is the appropriate product for anyone who does not live in their Spanish property full-time.
Already have a standard policy? Check your policy terms right now. Look for a "vivienda desocupada" or "desocupación" clause — this tells you what happens to your cover when the property is empty. If you are not sure what it says, contact us and we will review it with you.
What Holiday Home Insurance in Spain Typically Covers
Buildings Cover
The structure of the property — walls, roof, floors, fitted fixtures — throughout the year, including periods of unoccupancy.
Contents Cover
Furniture and belongings inside the property. Particularly important for furnished holiday homes that are left unattended for months.
Theft While Unoccupied
Cover for break-ins and theft during periods when the property is empty. One of the most common claims on holiday home policies.
Escape of Water
Burst pipes, slow leaks, and flooding from plumbing — particularly important in properties where no one checks for weeks or months.
Third-Party Liability
Covers you if a visitor or third party suffers injury or damage on or from your property. Essential if you allow any access.
Emergency Assistance
Some policies include remote emergency assistance — a contractor to deal with urgent issues even when you are not in the country.
Holiday Home That Is Also Rented Out?
Many foreign property owners in Spain use their holiday home for personal use some of the year and rent it out — whether through Airbnb, a local rental agency, or private arrangements — for the rest. This adds an important layer of complexity to your insurance.
If you rent your property to paying guests, standard holiday home insurance typically does not provide cover during the rental periods. You need a specific holiday rental or landlord policy that includes cover for paying guests, their liability claims, and damage caused by renters.
We can help you find the right combined policy, or separate policies that work together to cover both personal use and rental periods. See also our landlord insurance page.
Why Choose 247 Expat Insurance for Your Holiday Home Cover
We Know Holiday Home Insurance
We arrange holiday home insurance for expats across Spain regularly. We know which policies genuinely cover unoccupied periods and which do not.
English-Speaking
We explain policy terms clearly in English — including the small print that catches people out.
Remote Owners Welcome
You do not need to be in Spain to arrange insurance with us. We handle everything remotely.
Rental and Holiday Use
We help property owners who use their home personally and rent it out find the right combined approach to cover.
Policy Reviews
If you already have insurance, we will review your current policy and tell you honestly whether it covers you for unoccupied periods.
7 Days a Week
Something goes wrong at your holiday home on a Sunday? We are here.
Common Mistakes Holiday Home Owners Make
- 1Using a standard residential policy for a holiday home — the vacancy clause will invalidate or limit your cover for most of the year. You need a holiday home-specific policy.
- 2Not checking the vacancy period in the policy — some policies allow 30 days of unoccupancy, others 60, others more. Know your limit.
- 3Renting out without telling the insurer — if you rent the property and your policy does not cover paying guests, any claim during a rental period may be refused.
- 4Not including contents in the policy — a furnished holiday home can contain significant value in furniture, appliances, and belongings.
- 5Buying insurance in your home country thinking it covers Spain — UK, US, and Canadian home insurance policies do not cover Spanish properties. You need a Spanish policy.
Frequently Asked Questions
Does standard home insurance cover a holiday home in Spain?
Typically no — standard policies include vacancy clauses that limit cover when the property is unoccupied for more than 30–60 days. If your property is a holiday home, you need a policy designed for unoccupied or holiday use.
How long can my holiday home be empty before cover is affected?
It depends on the policy. Standard policies often have a 30–60 day vacancy limit. Holiday home policies are specifically designed to maintain cover throughout longer periods of unoccupancy. We will ensure you have the right type of cover.
Can I insure a holiday home in Spain from the UK, US, or Canada?
Yes. You do not need to be in Spain or a Spanish resident to arrange holiday home insurance. We handle the process entirely remotely for non-resident owners.
Can I insure a holiday home that I also rent out?
Yes, but you need additional cover for rental periods. Standard holiday home insurance does not cover paying guests. We can arrange combined cover or separate policies for personal use and rental use.
What happens if something goes wrong while I am not there?
Your holiday home insurance should cover damage, theft, and emergency situations even when you are not present. Some policies also include a remote emergency response service. We will ensure your policy includes the right protection for unoccupied periods.
Do I need to insure the contents if the property is only occasionally used?
Yes — a furnished holiday home can easily contain €20,000–50,000 or more in furniture, appliances, and belongings. Theft from unoccupied properties is common. Contents cover is strongly advisable.
Is holiday home insurance more expensive than standard cover?
It can be slightly more expensive, reflecting the higher risk profile of unoccupied properties. But the difference is often modest compared to the cost of being uncovered when a claim arises.
How quickly can I arrange cover?
In most cases within 24–48 hours. Contact us with the property address and details and we will move quickly.
Holiday Home vs Second Home: Is There a Difference?
Many people use the terms interchangeably, and for everyday purposes that is fine. For insurance purposes, both describe a property used intermittently rather than as a primary residence. The distinctions that matter to an insurer are more specific:
- How long the property is unoccupied at a time — a holiday home used for 8 weeks a year presents different risk to one used for 6 months
- Whether it is ever let out for income — letting activity changes the risk profile and the cover required
- The region and property type — coastal properties, mountain chalets, and urban apartments each carry different risk characteristics
A true holiday home policy is typically designed for properties used by owners and family for 2–4 months per year, not commercially let. If the property generates any rental income — even occasionally — the cover requirements change. We will always ask about letting activity as part of the quoting process to ensure the policy is structured correctly.
What a Holiday Home Policy Covers
A comprehensive holiday home insurance policy in Spain should include all of the following. Confirm each item is present before accepting any policy.
- Buildings (continente) — the physical structure, roof, walls, and fixed installations
- Contents (contenido) — furniture, white goods, and personal items kept at the property
- Extended vacancy cover — no suspension of cover during unoccupied periods that are normal for a holiday home
- Civil liability (responsabilidad civil) — your personal liability and that of family members using the property
- Emergency assistance — a 24/7 helpline accessible from the UK or wherever you are
- Storm, flood, and fire cover — including the mandatory CCS (Consorcio de Compensación de Seguros) levy for extraordinary natural events
- Theft — maintained as active cover during extended vacancy periods, not suspended after 60 or 90 days
Holiday Home Insurance When You Rent It Out
If you occasionally let your holiday home — to friends, via a platform, or through a holiday rental agency — your standard holiday home policy will likely not cover you during those rental periods. Rental activity creates a different risk profile that a personal-use policy is not designed to accommodate.
The additional risks created by rental activity include:
- Guest civil liability — a guest injured at the property could make a claim against you
- Accidental or malicious damage caused by tenants
- Loss of rental income if the property becomes uninhabitable due to an insured event
- Legal disputes with guests or rental platforms
For a property with any rental activity, you need either a holiday let endorsement on your existing policy or a separate holiday let policy — depending on the frequency and nature of the letting.
Platform rentals are increasingly scrutinised by Spanish insurers. Declare your letting activity and get the right cover — operating without the appropriate policy is a significant financial risk if anything goes wrong during a guest stay.
The Spanish Tourist Licence Requirement
If you rent out your holiday home commercially — even short-term via a platform — Spanish law requires a Licencia de Alquiler Turístico (tourist rental licence) in most regions. This is a legal requirement under the Ley de Arrendamientos Urbanos and regional tourism legislation, not just an administrative formality.
Key points to be aware of:
- Requirements vary by autonomous community — Catalonia, Valencia, the Balearic Islands, and the Canary Islands all have their own licensing rules and processes
- Operating without a licence exposes you to fines, and platforms may be required to delist unlicensed properties
- Some insurers require proof of a valid tourist licence before they will cover letting activity on a holiday home policy
- The licence number must typically be displayed in all rental advertisements
We recommend obtaining the tourist licence before seeking holiday let insurance cover. We can point you to the relevant regional authority for your area of Spain.
How Much Does Holiday Home Insurance Cost in Spain?
Indicative annual premiums for owner use only (not let commercially):
Apartment (2-bed, coastal)
Buildings and contents, extended vacancy
€280–€450 per year
Townhouse or Semi-Detached
Full cover, buildings and contents
€380–€600 per year
Detached Villa
Comprehensive cover, private use
€480–€800 per year
If the property is let out commercially, add approximately 25–50% to the indicative premiums above. Properties near the coast, in flood-risk areas, or with swimming pools attract higher premiums due to the increased risk profile.
Many holiday home owners in Spain are underinsured — particularly on the buildings sum insured (continente). We recommend reviewing your declared rebuild value annually, as construction costs in Spain have risen significantly. If the rebuild value is understated, a claim settlement will reflect the underinsurance proportionately.
Frequently Asked Questions: Holiday Home Insurance
Is holiday home insurance the same as second home insurance in Spain?
For most practical purposes, yes — both terms describe insurance for a property that is not your primary residence and is used intermittently. The policy structure is similar. The key variable is how you use the property: personal use only, occasional rental to friends, or commercial letting. We use both terms and will structure the right policy for your specific situation regardless of the label on the tin.
What happens if my property is empty for six months of the year?
Under a properly structured holiday home policy, a six-month vacancy period should not trigger any suspension or reduction in cover. This is the key advantage of a holiday home policy over a standard home insurance product. You should confirm the vacancy terms explicitly when comparing policies — some insurers have vacancy thresholds that still apply even on holiday home products, and these are worth checking.
Does holiday home insurance cover me if my guests cause damage?
A standard holiday home policy designed for personal use typically does not cover damage caused by paying guests. If you let the property out, you need either a holiday let endorsement or a specialist holiday let policy. Some landlord and holiday let policies include accidental damage by tenants as standard — others require it to be added. Damage caused by friends or family (non-paying guests) staying at your invitation is generally treated as accidental damage under a personal-use policy.
Do I need a tourist licence to let out my holiday home in Spain?
In most regions of Spain, yes. Commercial short-term rental — including via platforms — requires a Licencia de Alquiler Turístico in the relevant autonomous community. The requirements vary by region. Letting without a licence can result in fines, delisting from rental platforms, and complications with your insurance (some insurers require the licence as a condition of holiday let cover). We recommend obtaining the licence before advertising the property for rent.
What is the difference between a holiday home policy and a landlord policy?
A holiday home policy is designed for occasional personal use, with extended vacancy cover and potentially some provision for occasional rental activity. A landlord policy is designed specifically for commercially rented properties — with cover for loss of rental income, tenant liability, rent guarantee options, and legal expenses for eviction proceedings. If your property is permanently let out, a landlord policy is the right product. If you use it yourself and occasionally rent it out, a holiday home policy with a letting endorsement is usually the appropriate structure.
Can I get holiday home insurance for a property I haven't visited in over a year?
Yes, though you will need to provide accurate information about the property's current condition. If the property has been unoccupied for a long period, insurers may ask for a recent inspection report or request that you confirm the property's condition before cover begins. Properties that have been uninhabited for extended periods carry elevated risk — particularly around water damage, structural condition, and security. We can advise on what information is needed to arrange cover in this situation.