Fire, water damage… These inconveniences can occur during a rental. So how do you react when disaster strikes?
1. Check your insurance contract
As a homeowner, you are normally covered by a comprehensive home insurance for your holiday home. This contract includes two clauses:abandonment of recourse or waiver of recourse.
These clauses specify whether or not the owner, and therefore the insurance company, will be able to claim payment from the holidaymaker.
Concerned about your rental and your customers? Opt for comprehensive home insurance with waiver of recourse. This is the only way to ensure that the holidaymaker is covered for third-party liability, fire and water damage.
2. For tenants
If you had tenants at the time of the loss, it’s up to them to take out comprehensive home insurance. Their contracts include a so-called “vacation ” clause for rentals.
You can check with your tenant beforehand whether this clause is included in their contract. Note that if the clause is absent, tenants can take out temporary home insurance (1 to 90 days) to cover them during their stay. It works like comprehensive insurance and is very inexpensive.
Have you ever had to deal with a situation like this? If you’re interested in this topic, we also have an article on the
partnership between Luko and Airbnb
.