Many holiday rental owners in Marbella and surrounding areas such as Elviria, Cabopino, Río Real, El Rosario, Nueva Andalucía and San Pedro de Alcántara believe that booking platforms automatically protect them in case of accidents, damages or legal claims. Unfortunately, this is not true.

In Spain, the legal responsibility for what happens inside the property always remains with the owner, even when bookings come through Airbnb, Booking.com or other platforms.

Who Is Legally Responsible If Something Happens in a Holiday Rental in Spain?

The property owner is legally responsible for guest safety, property conditions and damage caused to third parties. This responsibility remains even if the property is managed by an agency or listed on booking platforms.

For this reason, proper insurance coverage is essential for all holiday rental properties in Spain.

Without the correct insurance and liability coverage, a single incident can result in:

• Expensive compensation claims

• Legal proceedings

• Property damage not fully covered

• Long-term financial consequences

Understanding your legal exposure and having the right protection in place is essential for operating a holiday rental safely and sustainably in Marbella.

What Legal Responsibility Does a Holiday Rental Owner Have in Spain?

Spanish law considers the property owner responsible for:

• Guest safety inside the property

• Structural conditions

• Fire and accident prevention

• Damage caused to neighbours

Even if you use a management company or booking platform, the owner remains legally accountable in most cases. This includes damage affecting neighbouring properties, which is especially relevant in apartment buildings and dense residential areas such as El Rosario, Nueva Andalucía and San Pedro de Alcántara.

This is why insurance coverage must be adapted specifically to short-term rental activity, not standard residential use. 

Why Standard Home Insurance Is Usually Not Enough

Many owners rely on regular home insurance policies that are designed for private residential use.

These policies often:

• Exclude commercial or rental activity

• Limit coverage when guests are present

• Exclude liability towards paying guests

As a result, incidents occurring during a guest stay may not be fully covered, leaving owners personally liable for damages or injuries.

Does Regular Home Insurance Cover Holiday Rental Guests?

In most cases, no. Standard home insurance policies are designed for private residential use and often exclude liability related to paying guests or short-term rental activity.

Owners should always confirm that their policy explicitly allows tourist or short-term rental use.

Types of Insurance Holiday Rental Owners Should Have

To operate safely, owners should consider:

Public Liability Insurance

Covers claims if a guest or third party is injured in the property, for example due to:

• Slips and falls

• Faulty installations

• Fire incidents

This is one of the most important protections for holiday rentals.

Property Damage Insurance

Covers damage caused by:

• Guests

• Accidents

• Weather events

However, coverage conditions vary, and not all guest-related incidents are automatically included.

Legal Assistance Coverage

Helps cover:

• Legal defence costs

• Claims management

• Dispute resolution

This can be crucial if neighbours, communities or guests take legal action.

What About Platform “Host Guarantees” and Damage Protection?

Platforms like Airbnb offer certain protection programs, but these:

• Are not insurance policies

• Have strict eligibility conditions

• Do not cover all types of incidents

• Do not replace professional insurance

Relying solely on platform protection can leave owners exposed to risks that only proper insurance policies cover.

How Professional Management Reduces Legal and Financial Risk

Professional holiday rental management adds several layers of protection, including:

• Safety compliance checks

• Proper guest screening

• Incident reporting procedures

• Documentation for insurance claims

At Pass the Keys Marbella, we work with owners to ensure:

• Insurance policies are suitable for holiday rental use

• Safety standards are maintained

• Any incidents are documented correctly and immediately

This significantly improves the owner’s position if a claim occurs.

Does Using a Property Management Company Replace the Need for Insurance?

No. Even with professional management, the owner remains legally responsible and must hold appropriate insurance. Management reduces risk by enforcing safety procedures and documentation, but it does not replace the owner’s legal liability.

Insurance and professional management work together to protect the owner effectively.

Real Examples of Situations Where Insurance Matters

Claims may arise from:

• Water leaks affecting neighbouring apartments

• Electrical faults causing damage

• Guest injuries on terraces or staircases

• Fire incidents caused by appliances

Without adequate insurance, owners may be required to cover repair costs and compensation personally.

These situations are rare, but when they happen, they are financially serious.

These incidents can occur in villas as well as apartments, whether in coastal zones like Cabopino and Río Real or in residential neighbourhoods such as Elviria and Nueva Andalucía.

Why Reviewing Your Insurance Regularly Is Essential

As regulations, property usage and rental patterns change, insurance policies should be reviewed to ensure they still match:

• Rental activity levels

• Property upgrades or renovations

• Changes in legal requirements

What was sufficient two years ago may no longer offer adequate protection today.

Contact Pass the Keys Marbella

Not sure if your insurance coverage is suitable for holiday rental activity in Marbella or surrounding areas? Our local team can help you understand what protection is recommended and how professional management supports safer and more compliant rental operations.

👉 Book a free property risk and compliance review call here:
https://calendly.com/ana-torrens-passthekeys

Protect your investment, your income and your peace of mind.