The exclusions that catch holiday-home owners out — empty-property conditions, wear and tear, undeclared letting — and how to avoid a refused claim.
The exclusions that catch holiday-home owners out — empty-property conditions, wear and tear, undeclared letting — and how to avoid a refused claim.
Most guides tell you what holiday home insurance covers. This one does the opposite — because the claims that get refused or reduced almost always come down to an exclusion or condition the owner didn't know about. For a Spanish holiday home, owned from abroad and empty much of the year, the gaps are predictable, and every one of them is avoidable once you know it's there. Here's what a holiday home policy typically does not pay for, and how to stay on the right side of the small print.
The biggest one. If your policy is rated as a normally-occupied home but the property actually sits empty for months, a claim arising during a long unoccupied spell can be reduced or refused. Insurers treat unoccupied property as higher risk and expect it to be declared. The fix is simple: be honest about how often the home is used, and take holiday home cover (or unoccupied-property cover for long gaps) that's actually rated for the empty months.
Even with the right policy, cover usually comes with conditions for long absences — most commonly the water turned off at the mains, basic security in place, and sometimes periodic checks. If a burst-pipe claim arises after you left the water on for three months against the policy condition, the insurer can decline it. These conditions aren't traps — they prevent the most expensive claim of all — but you have to actually meet them.
Insurance covers sudden, unforeseen events — not the slow deterioration of a property. A long-weeping seal, damp from years of poor ventilation, or a roof that finally fails after visible neglect are generally excluded as wear and tear or maintenance issues. For a holiday home you visit rarely, this matters: small problems left unaddressed can become uninsurable ones.
If you let the property to holidaymakers — even occasionally — and haven't told the insurer, a guest-related claim (damage, injury, liability) may not be covered, because a standard holiday-home policy assumes you and your circle use it. Letting needs holiday-rental cover. We cover this fully in our guide to renting out your holiday home.
Not strictly an exclusion, but it bites the same way. If your sums insured are below the true rebuild and replacement values, Spain's regla proporcional lets the insurer cut any claim in proportion — so even a covered event pays out less than you expected. Accurate buildings and contents values are the cure.
Contents cover usually caps what it pays for any one item unless it's specifically listed. Jewellery, watches, art or a high-end bike left at the property can fall outside the standard limit. If you keep valuables at the holiday home, declare them so they're properly covered.
This isn't a gap so much as a redirect: major floods, earthquakes and other catastrophes aren't paid by your insurer at all — they go to the state Consorcio de Compensación de Seguros, based on your sums insured. It's covered, but through a different door, and knowing that saves confusion after a disaster.
Money and documents, certain pest or vermin damage, damage from defective workmanship, and anything specifically excluded in your schedule. Exclusions vary by insurer and policy, so the golden rule is to read the schedule — or have us read it with you in English — so there are no surprises when you claim.
It comes down to four habits: declare how the property is really used (including any letting), meet the empty-property conditions (water off, security), keep the home maintained, and set accurate sums insured. Do those and the exclusions above simply don't apply to you. See holiday home insurance for the cover detail.
General guidance only — not personal insurance advice. Cover, limits and exclusions vary by insurer and policy, so always check your policy terms. Last updated: May 2026.
Common exclusions include damage during undeclared empty periods, claims where empty-property conditions weren't met, gradual wear and tear and poor maintenance, undeclared letting, and high-value items above the single-item limit. Exclusions vary by insurer and policy, so always check your policy terms.
It can, if the property was empty beyond what was declared or you didn't meet the policy's empty-period conditions (such as water off at the mains). Declare the real occupancy and a holiday-home policy covers the empty months. Cover varies by insurer and policy, so always check your policy terms.
No — insurance covers sudden, unforeseen events, not gradual deterioration or lack of maintenance. For a rarely-visited holiday home, keeping on top of small problems matters. Cover varies by insurer and policy, so always check your policy terms.
Not excluded as such — major declared floods and similar catastrophes are paid by the state Consorcio rather than your insurer, based on your sums insured.
Declare how the property is really used, meet the empty-property conditions, keep it maintained, and set accurate sums insured. We'll read your policy with you in English to spot any gaps.
Tell us about your property and we'll recommend the right cover — in plain English, with no pressure.
