Every investor should protect and ideally diversify their investments.
Floods, fires, vandalism, and earthquakes are common risks in the rental business, and insurance companies cover these risks. In Greece, insurance rates for real estate are relatively low.
For example, the average cost of insurance for our studios is €60-100 per year, which amounts to approximately 0.1% of the value (€60-70k) and about 1.5% of the annual rental income (€4.5-5k).
For studios operating on Airbnb, additional insurance is provided by the Airbnb platform and is called Aircover, covering damages up to €1 million. Those who work with short-term rentals know that insurance cases occasionally arise, and Airbnb insurance easily covers such incidents.
Sometimes we hear from property owners that property management companies explain to owners that they cannot receive anything from Airbnb – don’t believe it!, it’s complete nonsense. It’s just that such companies don’t want to bother and shift this expense onto the owners. In reality, the process is very simple and automated on Aircover; it requires understanding of the process and providing certain evidence of property damage and submitting documents for repairs or replacements.
The same applies to long-term rental properties because the main insurance companies operating in Greece are German, Dutch, and French insurance conglomerates. They have well-organized processes for handling insurance claims, and their reputation is built on their efficiency in assisting those affected.
Our advice to all investors is not to neglect insurance for their investments.
