Contents Insurance for Holiday Homes: How to Protect Your Investment Against 99 Percent of Risks
19 Sept 2025
4
Minutes
Katrin Straub
CEO at nextsure
Your holiday apartment is a valuable investment, but its furnishings are exposed to risks every day. A standard home insurance policy often doesn't cover damage when renting out and could cost you thousands of euros in the event of a claim. Find out how specialised contents insurance for your holiday apartment can provide comprehensive protection.
The topic in brief and concise terms
A private household insurance is insufficient for renting out a holiday apartment; a commercial inventory insurance is necessary.
Pay attention to the inclusion of specific risks such as damage caused by tenants, natural hazards, and gross negligence.
A correctly assessed sum insured and the clause for waiver of underinsurance are crucial to receiving full compensation in the event of a claim.
The fundamental difference: Private household contents vs. commercial inventory insurance
A private home contents insurance is designed for a permanently self-occupied dwelling and typically excludes commercial use, such as renting to holiday guests. Insurers assess the risk of a holiday home as up to 50 per cent higher because frequent vacancies increase the risk of burglary, and changing guests can lead to more damage. Therefore, a specialised inventory insurance for the holiday home is essential, as it covers the specific risks of renting as a commercial insurance. Without this protection, you risk a complete refusal of benefits in the event of damage.
The distinction is clearly defined legally: As soon as you pursue a profit-making intention, the rental is considered a commercial activity. A standard policy often covers unoccupied time for a maximum of 60 days, which is quickly exceeded with seasonal rentals. Inventory insurance, on the other hand, is specifically designed for these scenarios and reliably protects your investment. The right policy is thus the basis for worry-free renting.
Scope of coverage: These core risks are covered
A comprehensive contents insurance for renting out your holiday home protects all movable items – from the couch set to the coffee machine. It provides cover against a variety of risks that cause damages amounting to billions every year. Particularly important is the protection against tenant vandalism, which is almost always excluded in private policies. A good contents insurance explicitly covers this.
The standard risks typically insured include:
Fire: Protects against fire, lightning strikes, or explosions, which can quickly cause total losses exceeding €50,000.
Water damage: Covers damage from burst pipes or defective appliances like washing machines, which often remain unnoticed and incur high consequential costs.
Storm and hail: Secures against inventory damage caused by weather-related destruction to the building, such as a torn-off roof.
Burglary and vandalism: Replaces stolen items and covers the costs of repairing malicious destruction following a break-in.
This basic coverage already secures the most frequent and costly risks and forms the foundation of your insurance coverage. The next step is to secure against specific rental risks.
Calculate costs and insured sum correctly
The cost of contents insurance primarily depends on the sum insured and the location of the holiday apartment. For an averagely furnished 60-square-metre apartment, the annual premium can range between 250 and 500 euros. The sum insured should correspond to the new value of the entire contents to avoid underinsurance. An accurate value assessment is crucial because if the sum is only ten percent too low, the insurer can reduce the compensation by exactly that percentage in the event of a claim.
A crucial part of the contract is the waiver of underinsurance clause. If this clause is agreed upon, the insurer does not check in the event of a claim whether the sum insured exactly matched the actual value. Damages are then reimbursed up to the full agreed sum without deductions. This provides enormous security as the value of the contents fluctuates over the years. Nevertheless, it is advisable to regularly review the sum every two to three years.
Special Risk of Tenant Damages: Targeted Closing of Coverage Gaps
Damages caused by holiday guests are one of the biggest concerns for landlords. A red wine stain on the new sofa or a deep scratch in the parquet flooring can quickly rack up costs exceeding €1,000. The tenant's personal liability insurance does not always apply, especially for damages to rented, fixed installations. Many contents insurance policies also exclude damages caused by tenants, so it is necessary to carefully review the terms and conditions.
However, modern and specialised policies provide solutions precisely for this scenario. Look for policies that cover the following points:
Damage by tenants: Some insurers cover property damage caused by the tenant up to a sum of €5,000, often with an excess of around €250.
Misappropriation: Protection in the event that tenants take away insured items, such as televisions or high-quality kitchen appliances, upon departure.
Vandalism: Coverage against wilful destruction by guests, which goes beyond normal wear and tear.
These additional options are often only slightly more expensive but close a significant financial gap and protect you from the most common annoyances. This ensures you are also safeguarded against risks that arise directly from the letting business.
Expert Knowledge: How to Optimise Your Insurance Coverage
Beyond the basic coverage, there are important additional components that complete the protection of your holiday apartment. These expert tips help you avoid expensive coverage gaps and secure your investment against extraordinary events. Often, these details make the difference between full compensation and a high personal financial contribution.
Natural disaster damage as an essential additional protection
Standard policies do not cover damage from natural disasters such as flash floods, landslides, or snow pressure. In view of increasing weather extremes, a natural disaster insurance is a must. The 2021 flood disaster demonstrated that such events can occur anywhere and damages exceeding €100,000 are not uncommon. This component often costs only a five to ten percent surcharge on the annual premium.
Always insure against gross negligence
A common point of contention is gross negligence. If a guest leaves a candle burning unattended and a fire breaks out, the insurer may reduce or deny the payout. Our expert tip: Make sure your policy includes the 'waiver of defence in case of gross negligence'. This ensures the insurer provides coverage up to the full insured amount, even for damages caused by significant carelessness.
Covering rental loss and legal conflicts
If your holiday apartment becomes uninhabitable due to an insured damage, the rental income is lost. A rental loss insurance, often part of good inventory policies, replaces the lost profit for up to twelve months. Additionally, a landlord legal protection insurance is advisable. It covers legal and court costs in disputes with tenants or authorities, which can quickly exceed €2,000.
Request a personalised risk analysis now
Securing your holiday flat requires a well-thought-out strategy that goes far beyond a simple contents insurance. A specialised inventory insurance not only protects your property but also safeguards your rental income and shields you from unforeseen costs. With the right components like protection against tenant damage and natural hazards, you turn risks into manageable factors. This way, you can focus on what matters: satisfied guests and a profitable investment. Have your insurance situation checked for free and receive concrete optimization suggestions.
More useful links
Statistisches Bundesamt offers comprehensive content on the hospitality industry and tourism in Germany.
Verbraucherzentrale provides information on household insurance and the importance of the value of the furnishings.
GDV (Gesamtverband der Deutschen Versicherungswirtschaft) provides the General Household Insurance Conditions (VHB 2022) based on the square meter model.
Deutscher Tourismusverband (DTV) publishes current numbers, data, and facts about tourism in Germany.
Statistisches Bundesamt offers an EXSTAT dataset for booking online accommodations.
Bundesamt für Statistik (BFS) provides detailed statistics on accommodation in Switzerland.
FAQ
What is the right insurance amount for my holiday apartment?
The sum insured should correspond to the replacement value of all the contents. This means you should insure the amount it would cost to buy all the furnishings new today. A detailed list of purchase prices helps with accurate calculation.
Does the insurance also cover during vacancy of the holiday apartment?
Yes, an inventory insurance for holiday homes is specifically designed to provide coverage even during longer periods of vacancy. Unlike private home contents insurance, which often limits coverage after 60 days, these policies offer continuous protection because vacancy is a typical feature of holiday properties.
Do I need any additional insurance besides inventory insurance?
Yes, contents insurance only covers movable property. Additionally, you need buildings insurance for the property itself, property owner's liability insurance for damages caused to third parties, and ideally, landlord legal protection insurance.
Are items on the balcony or terrace also insured?
Yes, in most plans, garden furniture, grills, and other items on balconies and terraces that belong to the insured property are covered against basic risks such as storms or hail. You can find the exact compensation limits in your contract conditions.
What is the difference between simple and gross negligence?
Simple negligence is a momentary lapse of attention (e.g., knocking over a glass of water). Gross negligence occurs when basic duties of care are breached (e.g., leaving the house with candles burning). Ensure that your contract explicitly includes gross negligence, as otherwise the insurer may significantly reduce the payout.
How can I insure against damage from natural hazards?
Damage caused by natural events such as flooding, heavy rain, or landslides must be covered by a separate component, the elemental damage insurance. This is added as a supplement to the contents and home insurance and is essential for comprehensive protection.
