Governments across Europe and Asia are cracking down on short-term rentals.
Last month, Spain ordered Airbnb to delist 65,000 properties. Earlier this year, Thailand issued a warning to foreigners that buying apartments and renting them out violates Thai law.
Other popular destinations, like Italy and Greece, have implemented their own similar measures.
These new laws and regulations come on the brink of the busy summer travel season.
“They can leave travellers in a bind and cost them money, especially if accommodations are suddenly cancelled or become unavailable,” says insurance provider Squaremouth.
So what are travellers’ rights when their rental booking is cancelled and what insurance should you take out to ensure you are covered for this situation?
What are my rights to a refund if my Airbnb booking is cancelled?
Travel insurance can cover Airbnb stays and other holiday rentals as long as it includes trip cancellation or trip interruption coverage, Squaremouth says.
However, these benefits only reimburse you if you cancel for a covered reason, like an illness or severe weather that prevents you from travelling. Most plans do not cover government restrictions.
That said, Airbnb and other rental booking companies have policies in place to protect the traveller.
“If the host cancels or the listing is significantly different than advertised, Airbnb will help you find a comparable replacement or offer a refund,” says Ernesto Suarez, CEO of insurance provider Gigasure.
Can I claim expenses for alternative accommodation?
“Airbnb’s protection policy should ensure you get a refund on the accommodation, but of course this won’t cover you for any other expenses such as travel, car hire and other incidental costs,” says Suarez.
“Standard travel insurance would not normally cover cancellation of these if due to a change of government regulations or cancellation of your travel arrangements, as this is caused by circumstances outside of their control.”
If you want to make sure you are covered in this situation, you should opt for an insurer that offers more customisable cover so you can select exactly what you need.
What travel insurance policies protect against cancellations?
There are several things that can be done to protect yourself against an Airbnb booking being cancelled.
Suarez says you could consider booking a package trip. This does not necessarily mean with a tour operator.
“Booking travel and accommodation together through a travel agent means that you will be protected under the package travel regulations, providing financial protection if the travel or accommodation providers change your package or become insolvent,” he says.
“Booking flexible flights and travel arrangements can sometimes cost more but enable you to change plans at the last minute.”
If you prefer to book travel and accommodation separately, you may not be covered by a standard policy if one component of your trip is cancelled. If this is the case, look for a more comprehensive provider to ensure you are adequately protected.
Squaremouth recommends opting for a policy with ‘cancel for any reason’ (CFAR) coverage.
CFAR is an upgrade that offers partial reimbursement for prepaid and non-refundable trip payments if you need to cancel your trip for a reason not otherwise covered by trip cancellation, such as a government crackdown on Airbnbs.
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