Holiday apartment contents insurance: How to protect your investment against 99 per cent of risks
19.09.2025
12
Minutes
Katrin Straub
Managing Director at nextsure
Your holiday apartment is a valuable investment, but its furnishings are exposed to risks every day. A standard household contents insurance policy often does not cover damage during rental, and in the event of a claim it can cost you thousands of euros. Find out how specialised contents insurance for your holiday apartment offers comprehensive protection.
The topic in brief and concise terms
A private household contents insurance policy is insufficient for letting a holiday apartment; a commercial contents insurance policy is required.
Make sure it includes special risks such as damage caused by tenants, natural hazards and gross negligence.
An appropriately calculated sum insured and the underinsurance waiver clause are crucial to ensure you receive full compensation in the event of a claim.
The fundamental difference: private household contents insurance vs commercial contents insurance
A private household contents insurance policy is designed for a permanently owner-occupied home and generally excludes commercial use such as letting to holiday guests. Insurers assess the risk for a holiday apartment as up to 50 per cent higher, as more frequent vacancy increases the risk of burglary and changing guests lead to more damage. A specialist contents insurance policy for the holiday apartment is therefore essential, as, as a commercial policy, it covers the specific risks of letting. Without this cover, you risk a complete refusal to pay in the event of a claim.
The distinction is clearly defined in law: as soon as you are pursuing profit, the letting is considered commercial activity. A standard policy often covers only an unoccupied period of a maximum of 60 days, which is quickly exceeded in seasonal letting. A contents insurance policy, by contrast, is designed precisely for these scenarios and reliably protects your investment. The right policy is therefore the basis for worry-free letting.
Scope of services: These core risks are covered
A high-performance contents insurance policy for renting out your holiday apartment protects all movable items – from the sofa set to the bean-to-cup coffee machine. Cover applies in a wide range of risks that cause billions in damage every year. Particularly important is cover against vandalism by tenants, which is almost always excluded in private policies. A good contents insurance policy explicitly includes this.
Typical standard risks covered include:
Fire: Protects against fire, lightning strike or explosion, which can quickly cause a total loss of over €50,000.
Escape of water: Covers damage caused by burst pipes or defective appliances such as washing machines, which often go unnoticed and lead to high consequential costs.
Storm and hail: Covers damage to the contents resulting from weather-related destruction to the building, for example caused by a damaged roof.
Burglary, theft and vandalism: Replaces stolen items and covers the cost of repairing wilful damage after a break-in.
This basic cover already protects against the most common and most costly risks and forms the foundation of your insurance cover. The next step is protection against the specific risks associated with renting out the property.
Calculate costs and sum insured correctly
The cost of contents insurance depends largely on the sum insured and the location of the holiday apartment. For an average 60-square-metre apartment, the annual premium can be between 250 and 500 euros. The sum insured should correspond to the replacement value of all the contents in order to avoid underinsurance. An exact valuation is crucial, because if the amount is just ten per cent too low, the insurer can reduce the benefit in the event of a claim by exactly that amount.
A key part of the contract is the waiver of underinsurance. If this clause is agreed, the insurer will not check in the event of a claim whether the sum insured exactly matched the actual value. Claims are then reimbursed up to the full agreed sum without deductions. This offers enormous security, as the value of the contents fluctuates over the years. However, it is still advisable to review the sum regularly every two to three years.
Special risk: tenant damage – close coverage gaps in a targeted way
Damage caused by holiday guests is one of landlords' biggest concerns. A red wine stain on the new sofa or a deep scratch in the parquet flooring can quickly lead to costs of over €1,000. The tenant's private liability insurance does not always apply, especially in the case of damage to rented, permanently installed items. Many contents insurance policies also exclude damage caused by tenants, which is why it is necessary to take a close look at the terms and conditions.
However, modern and specialised tariffs offer solutions precisely for this scenario. Look for policies that cover the following points:
Damage caused by tenants: Some insurers cover material damage caused by the tenant up to a sum of €5,000, often with an excess of around €250.
Misappropriation: Cover in the event that tenants take insured items such as televisions or high-quality kitchen appliances when they leave.
Vandalism: Protection against deliberate destruction by guests that goes beyond normal wear and tear.
These optional add-ons are often only marginally more expensive, but close a significant financial gap and protect you from the most common headaches. This also protects you against the risks that arise directly from the letting business.
Expert knowledge: How to optimise your insurance cover
Beyond the basic cover, there are important additional modules that complete the protection for your holiday apartment. These expert tips help you avoid costly gaps in cover and protect your investment against extraordinary events as well. Often, these details make the difference between full compensation and a high financial excess.
Natural hazard damage as indispensable additional cover
Standard policies do not cover damage caused by natural disasters such as flooding from heavy rain, landslides or snow pressure. Given the increasing extreme weather, natural hazard insurance is a must. The 2021 flood disaster showed that such events can occur anywhere and that damage of over €100,000 is not uncommon. This module often costs only a surcharge of five to ten per cent on the annual premium.
Always include cover for gross negligence
A common point of dispute is gross negligence. If a guest leaves a candle burning unattended and a fire starts, the insurer may reduce or refuse the claim. Our expert tip: Make sure your policy includes a “waiver of the defence of gross negligence”. This means the insurer will also pay for damage caused by serious carelessness, up to the full sum insured.
Cover loss of rent and legal disputes
If your holiday apartment becomes uninhabitable due to an insured loss, rental income is lost. Loss of rent insurance, often part of a good contents policy, compensates for lost earnings for up to twelve months. In addition, a landlord legal protection insurance policy is worthwhile. It covers legal fees and court costs in disputes with tenants or authorities, which can quickly exceed €2,000.
Request your individual risk analysis now
Insuring your holiday apartment requires a well-considered strategy that goes far beyond simple contents insurance. A specialised contents insurance policy not only protects your property, but also secures your rental income and protects you against unforeseen costs. With the right components, such as cover against tenant damage and natural hazards, you can turn risks into manageable variables. This allows you to focus on what matters: satisfied guests and a profitable investment. Have your insurance situation reviewed free of charge and receive specific suggestions for improvement.
More useful links
Federal Statistical Office offers comprehensive content on hospitality and tourism in Germany.
Consumer Advice Centre provides information on home contents insurance and the importance of the value of household furnishings.
GDV (German Insurance Association) provides the General Home Contents Insurance Conditions (VHB 2022) based on the square-metre model.
German Tourism Association (DTV) publishes current figures, data and facts on tourism in Germany.
Federal Statistical Office offers an EXSTAT dataset for booking online accommodation.
Federal Statistical Office (BFS) provides detailed statistics on accommodation in Switzerland.
FAQ
What sum insured is right for my holiday apartment?
The insured sum should correspond to the replacement value of all inventory. This means you should insure the amount you would have to spend to buy all furnishings new today. A detailed list of purchase prices helps with the exact calculation.
Does the insurance also apply when the holiday flat is vacant?
Yes, contents insurance for holiday apartments is specifically designed to provide cover even during longer periods of vacancy. Unlike private contents insurance policies, which often restrict cover after 60 days, these policies offer continuous protection, as vacancy is a typical feature of holiday properties.
Do I need any other insurance policies in addition to contents insurance?
Yes, contents insurance only covers movable property. In addition, you need building insurance for the property itself, landlord liability insurance for damage caused to third parties, and ideally landlord legal expenses insurance.
Are items on the balcony or terrace also insured?
Yes, in most tariffs, garden furniture, barbecues and other items on balconies and terraces that belong to the insured property are also covered against basic risks such as storm or hail. You can find the exact compensation limits in your policy terms and conditions.
What is the difference between simple negligence and gross negligence?
Simple negligence is a momentary lapse in attention (e.g. knocking over a glass of water). Gross negligence exists when elementary duties of care are breached (e.g. leaving the flat with candles burning). Make sure that your policy explicitly includes gross negligence, as otherwise the insurer may significantly reduce the benefit payable.
How can I insure against damage caused by natural hazards?
Damage caused by natural events such as flooding, heavy rain or landslides must be covered via a separate component, natural hazards insurance. This is taken out as an add-on to contents and buildings insurance and is essential for comprehensive protection.
