What insurance do I need if I let my holiday apartment?

Which insurance policies are affected?

• Buildings insurance: In 19 cantons, a cantonal building insurer covers buildings against fire and natural hazards, usually on a compulsory basis. In Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais and Obwalden, there is no cantonal insurer, so you need to insure with a private company.
• Contents insurance: covers your furniture, appliances and linen. Check whether theft or damage caused by guests is covered when you let the apartment for payment.
• Liability insurance: As a building owner, you must pay for damage caused by a defect in the building or poor maintenance, such as a loose stair tread (Art. 58 CO). Depending on your policy, this may be included in your personal liability insurance or you may need separate building owner's liability insurance.
• Legal expenses insurance: can help with disputes involving guests, neighbours or authorities, provided letting is not excluded.

Do I have to tell my insurer about the letting?

The Federal Act on Insurance Contracts (ICA) covers increased risk: if you cause a substantial increase in risk during the term of the policy, the insurer is no longer bound by the contract for the period that follows (Art. 28 para. 1 ICA). It is substantial if it relates to a fact the insurer asked about when you took out the policy (Art. 28 para. 2 ICA). The contract may specify whether and how quickly you must notify them (Art. 28 para. 3 ICA).

Whether letting to different guests counts as an increased risk in your case depends on the questions in your application and your policy terms. Your policy may treat short-term letting as commercial use. So ask in writing and get confirmation of your cover.

What do Airbnb and other platforms cover?

Airbnb advertises AirCover for hosts: liability cover of up to USD 1 million and protection against guest-caused property damage of up to USD 3 million. Airbnb's terms and exclusions are available on its website. The protection applies to stays booked through Airbnb. You need your own policies for direct bookings, Booking.com or the tourist office.

Condominiums and rented apartments

• Condominium: The owners' meeting is responsible for insuring the building against fire and other risks, and taking out the usual liability insurance (Art. 712m para. 1 no. 6 CC). Ask the property manager whether letting to guests is covered by these policies. Find out more about condominiums.
• Rented apartment: You need your landlord's consent (Art. 262 CO), and you are responsible for making sure your guests do not use the apartment in a way that differs from what you are allowed to do. Find out more about subletting.

If you hire someone to clean

Employees in Switzerland must be insured against accidents (Art. 1a AIA). If you hire a cleaner directly, you must take out accident insurance as their employer and register with the AHV compensation office. For annual wages of up to CHF 2'500 per employer, AHV contributions are only collected at the worker's request; lower thresholds apply to domestic work (Art. 34d OASI Ordinance). If you hire a cleaning company, it takes care of this.

What to do

1. Put all your policies side by side: buildings, contents, liability and legal expenses, plus the owners' association policies if you own a condominium.
2. Write to your insurer and explain that you let the apartment to holiday guests: how many nights, through which channels and to how many guests.
3. Get written confirmation of what is covered, especially theft, guest-caused damage and your liability as the building owner.
4. Record the condition of the apartment with photos before the season and after any damage.
5. Set out the deposit and damage arrangements in your booking terms. You may only withhold the amount of the proven damage (Art. 267 CO).

What differs between cantons?

The main difference is buildings insurance: where there is a cantonal insurer, such as in Bern, Graubünden or Zurich, you are insured with it automatically. In Valais, Ticino and Geneva, you choose a private company. We have not checked whether cantonal building insurers require anything different for short-term letting.

A short summary, not legal advice. The linked official source and your municipality’s rules prevail.