Insurance for Short Term Rentals in North Cyprus

What Airbnb Owners and Investors Must Know

Short-term rentals in North Cyprus are booming.
Airbnb, Booking.com, and private holiday lets have turned homes into income-producing assets.

But insurance has not caught up with how these properties are actually used.

Most short-term rental problems begin with one sentence:
“I thought my home insurance covered that.”

It usually doesn’t.

Why Standard Home Insurance Often Fails for Short-Term Rentals

A typical residential home insurance policy is designed for private, long-term use.

Short-term rentals introduce different risks:

• frequent guest turnover

• accidental damage by tenants

• higher liability exposure

• increased fire and water risk

• loss of income after a claim

Many standard policies either:

• exclude rental use entirely

• limit coverage when guests are involved

• reduce claims without clear warning

This becomes visible only after a loss.

The Real Risks Short-Term Rental Owners Face

Guest Liability

If a guest slips, falls, or is injured inside the property, the owner can be held liable. Medical and legal costs can escalate quickly, especially with foreign guests.

Accidental Damage

Broken furniture, damaged appliances, cracked glass, water leaks. These are common, but not always covered unless explicitly included.

Fire and Electrical Risk

Short stays mean unfamiliar users. Incorrect appliance use and electrical overloads increase fire exposure.

Loss of Rental Income

After a fire or major water damage, the property may be uninhabitable for weeks or months. Without business interruption or rental income cover, the income stops while expenses continue.

What Proper Short-Term Rental Insurance Should Include

A well-structured policy for short-term rentals in North Cyprus should cover:

• Building and contents at correct, updated values

• Accidental damage caused by guests

• Third-party liability for tenants and visitors

• Fire, flood, storm, and natural events

• Optional loss of rental income after an insured event

• Clear acceptance of short-term or holiday rental use

The key is not the policy name.
It is whether rental activity is explicitly accepted.

The Underinsurance Trap for Rental Properties

Many rental properties are insured at outdated values. Furniture upgrades, renovations, or higher market values are never reflected in the policy.

When a claim occurs:

• payments are reduced proportionally

• disputes arise

• expectations collapse

Underinsurance is not a technicality.
It is a financial haircut written into the policy.

Why Local Expertise Matters

Short-term rental insurance is not a template product.
It requires understanding:

• local building standards

• seasonal usage patterns

• tourism-related claims

• realistic repair timelines

This is why working with a locally experienced insurer like CAN Sigorta matters. Policies are structured around how properties are actually used, not how forms assume they are used.

Good insurance is preventative.
It eliminates misunderstandings before they become losses.

A Simple Rule for Investors

If a property produces income, it must be insured as an income-producing asset.

Short-term rentals are not “just homes.”
They are businesses with guests.

Insurance should reflect that reality.

Final Thought

Short-term rentals can be highly profitable in North Cyprus.
But profitability without proper insurance is fragile.

The right coverage does not cost much more.
The wrong coverage can cost everything.

Insurance should be boring, predictable, and reliable.
Especially when guests come and go.