Updated: 14 April 2026

What Protection Does a Holiday Rental Property in Spain Need and What Does Welcs Do?

Short answer

If you rent out an apartment, house, or villa to tourists in Spain, you need to have your own basic property insurance. Welcs does not replace it.

At the same time, Welcs strengthens your protection through security deposits, insurance coverage linked to each booking, and full claims handling when damage is connected to a specific stay.

In holiday rentals, it is important not to confuse three different things:

• the owner’s basic property insurance
• the booking security deposit
• the insurance coverage linked to a specific reservation

Why does protection matter more in short-term rentals?

Short-term tourist rentals involve more risk than a standard long-term lease.

Guests come and go more often. The property is used more intensively. Furniture, appliances, and interiors are exposed to more wear, and even a minor incident can quickly turn into a bigger operational and financial problem if it is not handled properly.

Typical risks include:

• accidental damage during a guest stay
• serious cleaning or replacement costs
• broken furniture or damaged interiors
• technical issues discovered right after check-out
• disputes over damage responsibility
• downtime while the property is being repaired

This is why protection is not just a formality. It is part of how a holiday rental remains financially stable and operational.

Does the owner need their own property insurance?

Yes.

This is the key point: Welcs does not offer a general insurance policy to replace the owner’s own property insurance.

If you own a holiday rental, it still needs its own basic protection for situations that are not directly related to a specific guest or a specific stay.

For example:

• leaks
• electrical issues
• power surges or voltage fluctuations
• internal technical breakdowns
• other household or structural incidents not linked to a specific booking

These cases fall under the insurance of the property itself and therefore remain the owner’s responsibility.

What is the purpose of a booking security deposit?

A security deposit is not insurance.

Its main role is to act as a preventive and disciplinary tool for guests. The amount of the deposit is set according to the characteristics of each property: its level of equipment, valuable items, furniture, appliances, and nightly rate.

It is important to understand its role correctly:

• it helps prevent careless behaviour
• it may help resolve part of certain damages
• it is not designed to cover every type of damage in full

This is one of the most important points for owners. A deposit can work well as a deterrent, but on its own it is often not enough for more serious incidents. If a sofa has to be replaced, a wall repaired, or the property restored after substantial damage, the deposit may cover only part of the real cost.

That is why a security deposit does not replace either the owner’s insurance or the specific protection linked to each reservation.

What does Welcs do in relation to booking protection?

This is one of Welcs’ key strengths.

Each reservation can have its own insurance coverage. The amount depends on the type of property and is defined together with the owner. Depending on the property, the coverage may be:

• €20,000
• €50,000

This means we are not talking about a vague statement like “we have insurance,” but about specific protection linked to each individual stay.

Where is the real value of Welcs when damage occurs?

The value is not only in arranging that coverage, but in the fact that Welcs manages the entire process from start to finish when the damage is related to a specific booking.

In practice, this includes:

• opening the claim
• communicating with the insurer
• collecting evidence
• preparing photos, documents, and repair estimates
• following the case through to resolution
• making sure the compensation is properly approved
• arranging the repair work through the operations department

If, after an incident, a wall needs repainting, a sofa needs replacing, furniture needs repairing, or restoration work needs to be coordinated, Welcs takes care of it.

For the owner, this is much more valuable than simply knowing a policy exists, because the goal is not only to obtain approval, but to get the property fully operational again as quickly as possible.

How does Welcs work with Airbnb AirCover?

If the booking comes through Airbnb, Welcs also handles the process related to AirCover, as long as the damage is linked to that specific stay.

This is useful additional protection, but it should not be seen as a full replacement for the owner’s own insurance or for a properly structured protection system around the property.

In practical terms, AirCover can be part of the protection stack, but it should be treated as an additional layer, not the only one.

Where does Welcs help, but not replace the owner’s insurance?

This section is important because it helps avoid false expectations.

If the issue is not directly connected to a specific booking, but to the property itself, Welcs can help the owner, but it does not replace the owner’s home or property insurance.

For example:

• a leak outside a guest stay
• a technical breakdown
• electrical problems
• damage caused by voltage fluctuations
• other incidents unrelated to a specific reservation

In these cases, the correct way to explain it is this: Welcs can help, but the main insurance for the property remains the owner’s responsibility.

So what does the owner get when working with Welcs?

In simple terms, the structure looks like this.

On the owner’s side:

• basic insurance for the house, apartment, or villa
• protection against general property-related risks

On Welcs’ side:

• a security deposit as a preventive tool
• insurance coverage for each reservation
• coverage of €20,000 or €50,000 depending on the property
• full claim handling
• communication with the insurer, evidence gathering, and estimates
• organisation of repairs and restoration work
• handling of AirCover cases when the booking comes through Airbnb

Conclusion

Welcs does not replace the owner’s basic property insurance. And it is important to state that clearly.

The real value of Welcs lies elsewhere: the company adds an extra layer of protection specifically designed for holiday rentals. This includes security deposits, insurance coverage linked to each reservation, and full claim management from the initial report through to the final repair.

For the owner, this means a clearer, more controlled, and far less stressful way to manage the risks of holiday rentals.

FAQ

Does the owner still need their own property insurance if they work with Welcs?

Yes. Welcs does not replace the property’s basic insurance. The owner must still maintain their own protection for the home.

Is the security deposit the same as insurance?

No. A security deposit is mainly a preventive and disciplinary tool. It can help in some situations, but it does not replace insurance coverage.

Why is a deposit alone often not enough?

Because a deposit mainly discourages careless behaviour, but it may not fully cover more serious damage or the real cost of restoration and replacement.

What kind of coverage does Welcs provide per booking?

Each reservation can have specific coverage of €20,000 or €50,000, depending on the type of property and what has been agreed with the owner.

What does Welcs do if the damage is related to a specific booking?

Welcs manages the entire process: opening the claim, communicating with the insurer, gathering evidence and estimates, following the case through, and coordinating the repairs.

Does Welcs also work with Airbnb AirCover?

Yes. If the booking comes through Airbnb, Welcs also handles the case through AirCover when the damage is linked to that stay.

Is AirCover enough on its own?

No. AirCover can be a useful additional layer, but it should not be treated as a replacement for the owner’s own insurance and the broader protection structure around the property.

What happens if the issue is not related to a specific guest?

In that case, Welcs can help, but the property’s main insurance remains the owner’s responsibility.

What is the main difference between Welcs and a simpler management approach?

Not just that there is booking-related coverage, but that Welcs manages the whole process through to the final outcome: from opening the claim to completing the repair and getting the property ready again.