What are the main risks when you rent out a tourist apartment — and why insurance matters

Renting out a property as a tourist apartment — especially when you target short‑term stays — carries risks far beyond those of a regular long-term lease. Guests may cause property damage, cancel last minute, or overstays may lead to complicated claims. Without proper protection, those risks can turn into serious financial losses. That’s why having the right insurance coverage is not just recommended — for serious hosts and property‑management companies, it’s essential.

For owners on the Welcs platform (and similar), insurance isn’t optional — it’s a foundational part of your rental strategy.

Below, we outline three types of insurance (or protection) you should always have when renting out tourist apartments in Spain — and why each one plays a unique and irreplaceable role.

What is the “standard property insurance” — and what should it cover in the context of short‑term rentals?

The first type of protection every property owner must obtain is a comprehensive property insurance. This isn’t just a basic homeowner’s policy — it must specifically account for the fact that your property will be used as a tourist / short‑term rental apartment.

Key requirements for this insurance:

• It must explicitly state that the apartment is rented out as a tourist or holiday rental. Standard home insurance often doesn’t cover short‑term rentals.
• It should protect you against a wide range of contingencies: damage to the apartment itself (furniture, walls, fixtures), potential hygiene or pest‑related issues (“damages, wear & tear, pests, deep‑cleaning, bed‑bugs, etc.”), and even overbooking or booking conflicts which may trigger financial or legal complications.
• It must offer compensation for these risks — otherwise, the value of the coverage is minimal.

In short: this “core” insurance is the first line of defense protecting both your asset (the property) and your peace of mind. Without it — you are effectively assuming all the risk yourself.

Why a cancellation insurance (or booking‑protection policy) is a valuable second layer for owners and guests

Short‑term rentals often operate under non‑refundable or partially refundable pricing policies. But what happens if a guest cancels at the last minute, even under a “no refundable” policy?

This is where a dedicated cancellation (or reservation‑protection) insurance becomes valuable:

• Some insurance providers offer optional add-ons: for a fee (e.g., 15–30€), the guest (or owner) can buy insurance that protects against cancellations.
• If a guest cancels (even under a no‑refund or partially refundable policy), insurance can cover the cost — meaning the guest doesn’t pay a penalty, but the owner still receives the full amount due.
• For owners, this means stable revenue regardless of abrupt cancellations; for guests, it offers more flexibility and reduces financial risk.

For short‑term rental operators — especially in tourist-heavy areas like Costa Brava — this second layer can significantly reduce financial uncertainty.

Why “damage‑protection insurance” is a must — and why deposit alone often isn’t enough

In addition to property insurance and cancellation coverage, a third category — damage protection — is critical. For example, at Welcs we require a small fee (15–20€ per reservation) for damage insurance that covers up to 20,000–30,000€ per booking.

Why this extra insurance is important even if you take a deposit:

• A deposit serves mostly as a psychological deterrent: guests know there’s a deposit, so they (hopefully) behave better. But it doesn’t guarantee full compensation for major damage.
• If the damage is substantial — beyond what a deposit can cover — the damage‑protection insurance will act as the safety net. It allows owners to claim compensation for serious issues (broken furniture, major spills, structural damage, etc.).
• Combined with the regular deposit, this layer ensures you are covered for both minor and major risks, giving you full financial protection.

In other words: deposit + damage‑protection insurance = much stronger risk mitigation than deposit alone.

How AirCover (from Airbnb) fits — and why you should still consider additional insurance

AirCover — the damage‑protection and liability program automatically provided by Airbnb for hosts — offers useful baseline coverage.

For example:

• Host damage protection may reimburse you if a guest or invitee damages your property, belongings, or causes significant cleaning issues.
• In addition, Airbnb provides liability insurance in case a guest or third party gets injured or has property damaged during the stay.

This sounds reassuring — but it’s important to understand the limitations:

• AirCover is not a substitute for a proper homeowner’s or rental‑property insurance. Airbnb itself states that this protection “does not replace personal insurance” and may not cover all types of damage or situations.
• Some risks remain uncovered, especially prolonged or structural issues, acts of nature, wear and tear, or damage when the property is not occupied.
• Therefore, many professional hosts treat AirCover as a useful additional layer — but not their primary or only protection.

For owners using Welcs (or similar property‑management services on the Costa Brava), the optimal approach is multi-layer protection: personal or third‑party rental insurance + supplementary damage/cancellation policies + Airbnb AirCover (if relevant) — together forming a robust shield against multiple risks.

What’s the bottom line for property owners in Spain (Costa Brava) using Welcs

If you own a tourist apartment in Spain — and especially if you plan to rent it short‑term — protection isn’t optional; it’s a necessity.

Here’s a recommended insurance strategy for responsible owners:

1. Core property insurance adapted for short‑term rental (“turist apartment”) use — ensure the policy explicitly allows vacation rental operations.
2. Damage‑protection insurance + security deposit — to cover both minor and serious incidents, ensuring financial protection beyond just the deposit.
3. Cancellation or booking‑protection insurance — to guard against last‑minute cancellations and maximize revenue stability.
4. Use of AirCover (if hosting via Airbnb or another platform offering similar protection) — but treat it as supplementary, not primary, protection.

This layered approach gives you — as a property owner or manager — the best possible balance of flexibility, security, and financial stability.

Why this matters for Welcs clients

As a platform offering apartments to tourists, Welcs has a responsibility to property owners: to manage risks, uphold quality, and ensure trust. Encouraging (or requiring) these insurance layers helps protect the owner’s investment, maintain guest satisfaction, and reduce headaches from damages or cancellations — ultimately preserving the long-term value and reliability of your rental portfolio.

If you skip these protections, you’re effectively gambling with your property and income.

What next — and what we suggest

• Consult with insurance providers in Spain to get a rental‑property insurance policy that explicitly covers “tourist rental” use.
• Implement deposit + damage‑protection fees for each booking (as Welcs does).
• Offer (or require) optional cancellation insurance to guests booking under non‑refundable or partially refundable rates.
• If using Airbnb or similar platforms — rely on their coverage only as a supplementary layer, and always document condition of the property (photos, inventory, check‑in/out records) to support any claims.

Investing a little more in proper insurance now can save you significant time, money, and stress later — and ensures your rental business remains sustainable and professional.