Vacation rental insurance in Spain: what VFT property owners must know

Last summer, a guest slipped on wet pool tiles at a rental apartment in Mijas. Broken wrist, hospital visit, lawyer engaged. The owner had no liability insurance. The result: an EUR 18,000 claim paid out of pocket and a VFT registration under threat. This is not an isolated case. In Andalusia, insurance is a legal requirement for every VFT property, yet many owners skip this critical step.

Anouar Zhaoui · 2026-05-20

Is insurance mandatory for VFT properties?

Yes, unambiguously. Decreto 28/2016 from the Junta de Andalucia requires every VFT registration holder to take out a liability insurance policy (seguro de responsabilidad civil). This obligation applies from the moment you submit your VFT registration application. Without a valid policy number, your application will be rejected. The legislation is clear: as the property owner, you are liable for damage or injury that guests suffer during their stay. This includes injuries from poor maintenance, water damage to guest belongings, or damage to common areas of the building. The insurance protects both you and your guests.

What does the law actually say?

Article 7.3 of Decreto 28/2016 states that the owner must hold a poliza de seguro de responsabilidad civil covering the risks associated with tourist rental activity. When submitting your permits application, you must provide the policy number. The Junta conducts random checks to verify that policies remain active.

Types of insurance for vacation rentals

There are three types of insurance relevant to VFT owners. Only the first is legally required, but the other two are strongly recommended.

Insurance type	Spanish term	Required?	What it covers
Liability	Responsabilidad civil	Yes (Decreto 28/2016)	Guest injuries, third-party damage, legal costs
Property	Seguro de hogar	No, but recommended	Fire, water damage, theft, vandalism
Loss of income	Perdida de alquileres	No, optional	Lost rental income during uninhabitability

Liability insurance (mandatory)

This is the absolute minimum. The policy covers personal injury to guests and damage that guests cause to common areas or neighbouring properties. Without this policy, your VFT registration is invalid.

Property insurance (recommended)

A standard home insurance policy does not always cover damage caused by tourists. Many policies explicitly exclude commercial use. Choose a seguro de hogar para uso turistico that specifically covers tourist rental activity.

Minimum coverage and what the policy must include

The Junta de Andalucia prescribes a minimum liability coverage of EUR 150,000. This amount applies per incident. In practice, insurers and gestores recommend coverage of EUR 300,000 to EUR 600,000, especially if your property has a swimming pool or elevated terrace.

Mandatory coverage elements

Your liability policy must cover at minimum: • Bodily injury to guests - slips, falls, cuts, burns • Damage to guest belongings - water damage to luggage, damaged electronics • Damage to common areas - water damage to apartments below your property • Fire and explosion risk - including damage to neighbours and the building • Water damage to third parties - burst pipes, leaks to adjacent properties • Legal defence - cost of legal representation in claims

Recommended additional coverage

For complete protection, consider adding: • Theft and vandalism by guests (not covered as standard) • Key loss and lock replacement costs • Loss of rental income during uninhabitability from a covered event • Swimming pool liability (if applicable)

Choosing the right policy: Spanish insurer comparison

Not every insurer offers policies tailored to tourist rentals. Below is a comparison of four major Spanish insurers that provide VFT-compatible policies.

Insurer	Annual premium	Liability limit	Key features
Mapfre	EUR 250 - 400	EUR 300,000	Dedicated VFT product, 24/7 Spanish customer service
AXA	EUR 220 - 380	EUR 300,000	Online application, combined hogar + RC policy
Zurich	EUR 280 - 450	EUR 600,000	Higher default coverage, international network
Linea Directa	EUR 200 - 350	EUR 150,000	Lowest premium, meets legal minimum

Tips for choosing

• Verify the policy explicitly mentions uso turistico or alquiler vacacional • Ask about swimming pool exclusions if your property has a pool • Choose a policy with direct claims settlement (convenio de indemnizacion directa) • Compare through a correduria de seguros (insurance broker) - they know the VFT requirements • Keep your policy number accessible: you need it for your VFT application and any inspections

Insurance claims: what to do when something goes wrong

When a guest is injured or damage occurs during a stay, acting quickly and correctly is essential. Follow this step-by-step process:

Ensure guest safety - call 112 for injuries and make sure the situation is safe
Document everything - take photos of damage or the scene, note the date, time, and circumstances. Ask the guest for a written statement
Report the claim to your insurer within 7 days - most Spanish policies require notification within 7 calendar days. Missing this deadline can result in claim denial
Complete the claim form - your insurer will send a parte de siniestro (claim report form). Fill it out completely and attach all documentation
Keep all receipts - medical costs, repair costs, temporary accommodation, everything related to the incident
Cooperate with the assessor - the insurer will send a perito (loss adjuster) to assess the damage. Provide full cooperation
Await the decision - the insurer has a legal maximum of 40 working days to decide on the claim

Key deadlines

• Claim notification: within 7 calendar days of discovery • Insurer decision: maximum 40 working days • Statute of limitations: 1 year for property damage, 1 year for personal injury (Spanish law) Tip: take photos of your property's condition at every check-in. This prevents disputes about pre-existing damage. With KeyLessCosta, you can set up the check-in process so that documentation is captured automatically.

Frequently asked questions

Is liability insurance really mandatory for my VFT?: Yes. Decreto 28/2016 from the Junta de Andalucia requires a seguro de responsabilidad civil for every VFT property. Without a valid policy number, your VFT registration will not be approved.
How much does vacation rental insurance cost?: Expect to pay EUR 200 to EUR 500 per year, depending on the insurer, coverage level, and property features (pool, floor level, size).
Does my regular home insurance cover tourist rentals?: Usually not. Standard hogar policies often exclude commercial use. Check your policy terms and specifically ask about coverage for uso turistico.
What if a guest damages my property?: Guest damage falls under your property insurance, not your liability policy. Make sure you have a seguro de hogar that specifically covers vandalism and damage by tenants.
Do I need insurance before or after the VFT application?: Before. When submitting your VFT application, you must provide your liability insurance policy number. See our permits checklist for all required documents.
Can I use an insurance company from my home country?: In theory yes, but the policy must meet Spanish legal requirements and the Junta must be able to verify the policy number. In practice, a Spanish insurer is simpler and faster for claims handling.

KeyLessCosta
Málaga, Andalucía 29001, Spain
+31 6 18 28 40 11 (WhatsApp)
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