Holiday home insurance in Cyprus: your essential guide

Nestled in the Mediterranean sea, Cyprus is the third largest island in the region and has become an increasingly popular holiday destination for Brits over the years. This small island nation is rich in both history and culture, and with long, hot Mediterranean summers spanning from February to November, it's easy to see the appeal of owning a holiday home here.

Whether you're in the market for a property in Cyprus, or already own a holiday home, having the right holiday home insurance in place is essential. In this guide, we'll cover everything you need to know about holiday home insurance in Cyprus; from core protections to optional extras, and how to save money on your insurance.

What's covered:

• What is holiday home insurance?
• What insurance do I need for a holiday home in Cyprus?
• Can I rent out my holiday home in Cyprus?
• How long can I stay in Cyprus if I own a property?
• Is Airbnb legal in Cyprus?
• Is holiday home insurance more expensive?
• 5 ways to save money on your Cypriot holiday home insurance
• A note from Howden
• Key Takeaways
• FAQs

Are you looking for holiday home insurance for your property in Cyprus? At Howden, our team of trusted experts can help you find a policy that’s the perfect fit for you.

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What is holiday home insurance?

Holiday home insurance is a type of specialist property insurance specifically designed for those who own a second property or holiday home abroad.

Given that second properties are often left unoccupied for long periods or rented out to paying guests, they are exposed to increased risks. These include theft, fire and flooding, water leaks and guest-related damage. These tailored policies safeguard your property against such risks that come with owning a property abroad.

What insurance do I need for a holiday home in Cyprus?

This depends on how you plan to use your overseas property, however you will need buildings and contents cover as the bare minimum. The following additional types of cover are also strongly recommended for all holiday home owners:

• Escape of water and oil

• Accidental damage cover

• Unoccupancy cover

• Alternative accommodation cover

• Emergency travel costs cover

• Legal cover

If you plan to rent out your holiday home, public liability cover is legally required. The following are also strongly recommended:

• Loss of rental income cover

• Domestic staff cover

A specialist Cyprus holiday home insurance policy usually includes buildings and contents cover as standard, just like regular home insurance. Many comprehensive holiday home insurance polices also include some or all of the additional cover options mentioned above.

If they're not automatically included, you can add them as optional extras so your holiday home insurance cover matches your needs. Always check your policy wording carefully to see what's included.

Combining these under a single policy is usually more cost-effective than using multiple providers. Let's take a look at each cover type in more detail:

Buildings insurance

Protects the property’s structure against risks such as earthquakes, fire, storms, flooding, vandalism, and landslides. It may also include permanent fixtures like fitted kitchens and bathrooms.

Cyprus sits in a seismically active region at the meeting point of the Eurasian and African tectonic plates, meaning it's prone to natural disasters, making this cover especially important. Holiday homes in close proximity to the coast may also face increased risk.

Note: If you plan to finance your property with a mortgage, buildings insurance is compulsory in Cyprus

Contents insurance

Contents insurance covers the items inside your holiday home, such as furniture, electrical devices, appliances, and personal belongings (including high value contents)

Escape of water or oil

Typically included as standard, covering damage caused by leaks from water pipes, heating systems, or domestic appliances. It covers both structural damage (e.g. walls, floors, ceilings, and permanent fixtures) and damage to your holiday home's contents.

Accidental damage cover

Accidental damage cover protects both the buildings and contents of your holiday property against accidental damage, including that caused by guests if you plan to rent out your holiday home.

Public liability insurance

Often included as standard, public liability insurance protects you against claims if someone (i.e. a third party) sustains a bodily injury or their property is damaged while staying at your holiday home.

Note: Public liability cover is a legal requirement in Cyprus if you plan to rent out your property while you're away.

Unoccupancy cover

Owning a holiday home in Cyprus often means leaving it empty for weeks or even months at a time. Homes left unoccupied for long periods increase the risk of theft, water damage, and unnoticed maintenance issues. Plus, standard home insurance providers require you to live in the property and won't usually cover homes left for extended periods than 30 days.

That’s why unoccupancy cover is a key feature of many holiday home insurance policies. These policies are designed for longer vacant periods, often providing unoccupancy cover for up to 60 days or more during the off-season. These policies usually come with conditions (e.g. removing high value items) and may exclude certain risks like loss of metered oil or water.

Alternative accommodation cover

If your Cypriot holiday home becomes uninhabitable due to insured damage, this cover pays for alternative accommodation so you and your family have somewhere to stay during repairs. It’s often included in holiday home insurance, but always check your policy documents first.

Emergency travel costs cover

Emergency travel cover pays for travel expenses if you need to visit your holiday home due to an emergency, such as a burst pipe, fire, or storm damage.

Legal cover

Holiday home legal insurance provides cover if you face a legal dispute related to your holiday home, including:

Contract disputes:

• Problems arising from buying or renting out your holiday home for leisure purposes.

• Disputes related to buying or hiring services.

• Issues involving your tenancy or a lease where you are the tenant or lessee.

Property disputes:

• Claims against another party who causes damage to your holiday home, nuisance or trespass.

Tax:

• Assistance from an accountant if HMRC investigates your personal tax affairs.

Legal defence:

• Covers the cost of legal representation if you are investigated for, or charged with, an incident related to letting out your holiday home.

Can I rent out my holiday home in Cyprus?

Yes, you can rent out your holiday home in Cyprus, subject to meeting local legal requirements:

• For tourist or short-term lets (e.g. on Airbnb), your holiday home must be registered as a ‘self-catering accommodation’ with the Deputy Ministry of Tourism. Long-term rentals of more than 90 days are generally exempt from this requirement.

• You will need to pay a fee of €222 per property, and your permit will be valid for three years. You can apply online via https://www.gov.cy/tourism/

• Public liability insurance is legally required for short-term rentals with a minimum recommended cover of €100,000.

• Other requirements include safety certifications, tax registration, and permissions from local authorities.

While not legally required, buildings insurance is also normally mandatory. The following insurance types are also strongly recommended:

Loss of rent cover

Loss of rent (or loss of rental income) cover helps protect your earnings if your property becomes uninhabitable due to an insured event, such as fire, flooding, or storm damage. This means you can recover lost income from cancelled bookings while repairs are carried out.

Domestic staff cover

If you employ domestic staff at your holiday home, this cover protects you if they are injured or fall ill while working.

How long can I stay in Cyprus if I own a property?

As a UK citizen, you can stay in Cyprus for up to 90 days within any 180-day period without a visa, since post-Brexit you are classed as a third-country national. However, owning property in Cyprus does not grant you the right to stay for longer.

To exceed this 90-day limit, you’ll need to apply for either:

Temporary residence permit

• Valid for 1 year, renewable annually (up to 5 years).

• Requires proof of income, health insurance, and property ownership or rental.

• Does not allow you to work in Cyprus.

Permanent residence permit

• Available if you invest €300,000 or more in new property.

• Requires a secure annual income (usually €50,000 for the main applicant).

• Approval typically takes 6–9 months and is valid for life (ID card renewal every 10 years).

Find out more here

Is Airbnb legal in Cyprus?

Yes, using Airbnb to rent out your holiday property in Cyprus is legal, given that you've registered it as a ‘self-catering accommodation’ with the Deputy Ministry of Tourism. Once approved, you'll need to display your registration number on Airbnb and any other online listings you choose to use.

What does Airbnb insurance cover?

AirCover is Airbnb’s built-in protection program for hosts. It is free and automatically applies to every booking made through the platform. It includes:

• Host liability insurance: Covers up to $1M for guest injuries or property damage claims during a stay.

• Host damage protection: Covers up to $3M for damage to your property or belongings caused by guests.

However, it should be noted that AirCover does not meet the legal requirements for letting out a property in Cyprus; you'll still need to meet the requirements laid out by the Deputy Ministry of Tourism.

Is holiday home insurance more expensive?

Holiday home insurance is generally more expensive than standard home insurance policies, due to the increased risks associated with owning a property abroad. Fortunately, there are still ways you can save money on your insurance!

5 ways to save money on your Cypriot holiday home insurance

1. Regular maintenance

Keeping your holiday home in good condition helps prevent wear and weather damage, reducing the likelihood of claims and keeping premiums lower.

2. Improve security

Adding features like burglar alarms, secure locks, and security cameras to your holiday home can deter break-ins and may lower your insurance costs.

3. Increase your excess

Choosing a higher excess can reduce your premium, but make sure it’s an amount you can comfortably afford if you need to make a claim.

4. Use one insurance provider

Combining buildings and contents cover (plus any additional cover options) under a single holiday home insurance policy is often more cost-effective than using multiple insurers.

5. Pay annually

Paying your premium in one annual payment is usually cheaper than spreading the cost monthly.

A note from Howden

If you're looking for tailored Cyprus holiday home insurance, we're here to help. We work with leading insurers that offer holiday home insurance for both personal use and holiday lets. Our brokers can compare options across the market and find you the right insurance for your needs. Get a quote today or call us at 0117 403 3000

Holiday home insurance Cyprus: Key takeaways

• Holiday home insurance is essential for anyone who owns a second property in Cyprus. Standard home insurance won’t cover the unique risks of a owning a holiday home.

• Cyprus is more prone to natural disasters, so having the right buildings cover in place is essential.

• A specialist holiday home insurance policy typically includes buildings and contents cover, but you should also consider extras like accidental damage, alternative accommodation and emergency travel costs for complete protection.

• Always check the policy wording carefully to see what's included in your holiday home insurance.

• If you plan to let your holiday home, public liability cover is legally required. You should also consider loss of rent cover and domestic staff cover.

• UK citizens can apply for either a temporary or permanent residence if they want to stay in Cyprus for longer than 90 days. Owning a holiday home does not affect period of stay.

• You can use Airbnb to rent out your holiday home provided that it's registered with the Deputy Ministry of Tourism. Note that Airbnb's 'AirCover' is not sufficient insurance for holiday homes.

• There are several ways to save on your Cyprus holiday home insurance, such as regular maintenance, improving security and paying your insurance annually.

Hear from our insurance expert…

What’s new or changed in the holiday home insurance market which I should be made aware of?

"One of the most common claims on holiday homes is for escape of water e.g. pipes bursting. Holiday homes tend to be left unoccupied for longer periods, so any damage may not be found quickly, resulting in high claim costs - especially with the cost of construction/living in recent years. Holiday home insurers have started increasing their escape of water excess to reduce claims, so if you are adding a voluntary excess, check if that’s on top of the escape of water excess."

Rob Neal, holiday home insurance expert.

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