Reviewed by Hugo Gonçalves, Founder & Risk Management Specialist at Adler & Rochefort · Degree in Business Management (University of Hertfordshire) · Ongoing training at the Chartered Insurance Institute (CII), London.
A private home policy is written for a family living in its own house. Once the villa is let to guests — even for a few weeks a year — much of that policy may no longer apply: theft by guests is often excluded, liability to paying guests is a commercial risk, and staff who serve them are employees in the eyes of the law.
We arrange cover for high-value villas let in Portugal and Spain, whether occasionally or through a managed rental programme, placed with insurers, specialist markets and co-brokerage partners who write letting risks.
Owners of villas that are both a family home and, for part of the year, a rental property.
The losses that matter are damage and theft by guests, injuries around pools and on terraces, accidents with equipment provided to guests, damage to art and contents that a family would never expose to strangers, and the loss of bookings after a fire or flood. Each country adds its own licensing layer:
| Portugal | Spain | |
|---|---|---|
| Licensing | Short-term letting to tourists requires Alojamento Local registration with the municipality; the regime has been amended several times in recent years | Tourist rental licensing is regional — for example the Balearics, Andalusia (VFT) and Catalonia (HUT) — and some municipalities restrict new licences |
| Compulsory insurance | The AL regime requires the operator to hold insurance covering liability for damage to guests and third parties arising from the activity | Several regions require liability insurance as a condition of the licence; the requirement and minimum limits are set regionally |
| National registration | The AL registration number must appear in listings | A national short-term rental register introduced in 2025 was largely annulled by the Supreme Court in 2026; the regional licence and its number remain the reference |
| Staff | Workers’ accident insurance is compulsory for employees | Employees are registered with Social Security; accident insurance is often required by collective agreement |
Licensing rules change frequently and differ by municipality and region. We describe them here in general terms; your manager or lawyer should confirm what applies to your property.
The policy must recognise that the villa is let, and describe how.
Rebuild cost and contents on an all-risks basis, with the letting activity declared and accepted by the insurer.
Scheduled items covered while guests are present, or a clear plan for items locked away or removed during lets.
Damage caused by guests, including malicious damage and theft, which home wordings often exclude.
Bookings lost after an insured event — fire, flood, storm — for the period needed to restore the villa.
Injuries around pools, terraces and gardens, and liability for boats, e-bikes, events and other activities offered to guests.
Compulsory workers’ cover for employees, employer’s liability, and clarity about contractors provided by the manager.
Liability cover that meets the Alojamento Local requirements in Portugal, or the regional requirements in Spain.
The rental calendar and the licence are as important to the underwriter as the house itself.
Before any proposal you receive a written note: what the exposure actually is, where your current policies stop, and what a well-placed policy should contain. It is yours to keep whether or not you proceed.
Letting risks for high-value villas are written by a limited number of insurers and specialist markets. We place them directly or through co-brokerage partners, and coordinate the letting cover with your private home and valuables policies so the two do not contradict each other.
The same person handles the file from the first conversation through placement, every renewal and any claim. You never re-explain your circumstances to somebody new.
If something happens, we notify the insurer, assemble the documentation, and stay with the claim until it is settled, in writing, with a record of every step.
Adler & Rochefort is an ASF-registered insurance intermediary, not tied to any insurer, with its head office in Lisbon and clients across Portugal and Spain. No client names are published, and information about what you own or how you live goes only to the markets approached on your instructions.
Tell us briefly what you would like to protect, and where. We reply in writing, in English, within 24 hours, with a first assessment and the information an underwriter will need. No call is required at any stage.
By sending this form you agree to us using your details to prepare and discuss the cover, in line with our privacy policy. We never sell your data, and we do not publish client names or details of what we insure.
We will reply in writing within 24 hours.