Holiday home insurance in Greece: Your essential guide

Greece remains one of the most popular destinations for British holidaymakers, offering a mix of mainland charm and idyllic Greek islands like Crete, Corfu, and Santorini.

While the country is part of the EU, its property market is still developing, which means buyers can often find excellent value. Securing a mortgage is now relatively straightforward, and while navigating local regulations takes careful planning, the process is entirely manageable with the right guidance.

One of the most important steps when buying property abroad is arranging insurance. Greece is vulnerable to natural disasters, and with a spat of devastating wildfires in recent years, insurance ever more important for Greek holiday home owners.

In this guide, we'll break down everything you need to know about holiday home insurance in Greece, including cover options, legal requirements and how you can save money.

What's covered:

• What is holiday home insurance?
• What insurance do I need for a holiday home in Greece?
• Can I rent out my Greek holiday home?
• Is rent income taxable in Greece?
• Is Airbnb legal in Greece?
• Is holiday home insurance expensive?
• 5 ways to save money on your Greek holiday home insurance
• A note from Howden
• FAQs

Are you looking for holiday home insurance for your property in Greece? 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 home insurance designed for those who own a second home or property overseas.

Since these properties are often left vacant for long periods of time or let out to paying guests, they face higher risks than a main residence. Common issues include theft, fire, flooding, water damage, and accidental damage caused by visitors. A tailored holiday home insurance policy helps protect your Greek property against these increased risks, giving you peace of mind while you’re away.

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

The insurance you'll need depends on how you plan to use your property. At the very least, you should have buildings and contents insurance. Beyond that, here are several extra types of cover that are highly recommended for anyone who owns a holiday home in Greece:

• Escape of water and oil

• Accidental damage cover

• Unoccupancy cover

• Alternative accommodation cover

• Emergency travel costs cover

• Legal cover

Greek holiday home insurance policies typically include building and contents cover, much like standard home insurance policies. Many comprehensive holiday home insurance policies will also include some or all of these extra cover options outlined above.

If these options aren’t included as standard, you can usually add them to your holiday home insurance as optional extras. Always review the policy wording carefully so you know exactly what’s covered.

Note: combining all your cover types under one policy is usually more cost-effective than arranging them through multiple insurers.

Let’s explore each cover option in more detail:

Buildings insurance

An integral part of any property insurance policy, buildings insurance protects the structure of your holiday home against risks such as earthquakes, fire, storms, flooding, vandalism, and even landslides. It often includes permanent fixtures like fitted kitchens and bathrooms (including sanitary fixtures).

Greece is often affected by natural disasters, particularly forest fires during summer, and occasional earthquakes. In recent years, Greece has frequently hit the headlines for devastating wildfires, making both buildings and contents cover ever more important. Since policies may vary, it's also crucial to confirm specific inclusions like earthquakes and fires.

Note: If you’re buying your Greek holiday home with a mortgage, buildings insurance is usually a contractual requirement.

Contents insurance

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

Note: Insurers may require specific security measures for high-value contents insurance, such as fitting five-lever deadlocks and key-operated locks.

Escape of water or oil

Typically included as standard, covering damage caused by leaks from pipes, heating systems, or household appliances. It usually covers both damage to the building itself (for example walls, floors, ceilings, and fixtures) and your property's contents.

Accidental damage cover

This protects your property and its contents against accidental damage, including that caused by guests if you plan to let out your holiday home.

Public liability insurance

Often included as standard, public liability insurance protects you against claims if someone is injured or their property is damaged while staying at your holiday home.

Unoccupancy cover

Naturally, your Greek holiday home will be left unoccupied for extended periods of the year. Empty properties face higher risks of theft, leaks, and neglected maintenance issues. What's more, standard home insurance usually won’t provide cover for homes left vacant for more than 30 days.

That’s why unoccupancy cover is an essential part of many holiday home insurance policies. These policies cover longer vacant periods, often up to 60 days or more. They may be subject to certain conditions (such as removing valuables) and some insurers may exclude certain risks like loss of metered water or oil, so make sure you double check your policy wording to see what's included.

Alternative accommodation cover

Should your Greek holiday home become uninhabitable after an insured event, this cover ensures you and your family have somewhere to stay during the repair work. Many policies include alternative accommodation cover as standard, but be sure to double check.

Emergency travel costs cover

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

Legal cover

Holiday home legal insurance covers you in the event of a dispute related to your holiday home. This could include:

• Contract disputes: Issues with buying or renting out your property; disputes related to buying or hiring services; and issues involving your tenancy or a lease where you are the tenant or lessee.

• Property disputes: Claims against a third party who causes damage, nuisance, or trespasses your holiday home.

• Tax: Accountancy support if your personal tax affairs are investigated by HMRC.

• Legal defence: Covers legal representation costs if you’re investigated for, or charged with, an incident in connection to letting your holiday home.

Can I rent out my Greek holiday home?

Yes, you can rent out your Greek holiday home, but there are strict rules you need to follow. To rent your property for short-term stays (anything under three months), you'll need to obtain a licence from the Greek National Tourism Organisation (EOT).

Regardless of who you plan to rent your property to, be it paying guests or family, if you're earning income from their stay, you must hold an EOT licence. Failing to do so could result in a hefty fine or even deportation.

In order to obtain the licence, your Greek holiday home will need to meet the following requirements:

• The building must fully comply with the original building plans, meaning no unauthorised extensions or illegal structures.

• Rooms must meet the minimum size requirements.

• If your property has a pool, it must display clear depth markings and safety warnings. Failure to do so could result in prosecution if an accident occurs.

Note: obtaining the licence can be time-consuming and costly (often €3,000 or more), and in some areas, licences may be restricted due to market saturation. It’s best to check availability before you buy a property for rental purposes.

You'll also need public liability cover, which is a legal requirement for all holiday home lets. The following cover 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

Covers domestic staff at your holiday home if they are injured or fall ill while working.

Is rent income taxable in Greece?

Yes - if you're earning rental income from your holiday home, you must:

• Register your holiday home with the Greek tax authorities

• Obtain a Property Registry Number (PRN) and include it in all listings

• Declare each rental period through the official tax platform

Note: You'll also need to inform HMRC about additional income from overseas properties, since British residents are generally required to pay tax on any income from outside the UK.

Is Airbnb legal in Greece?

Yes, using Airbnb to rent out your Greek holiday home is legal, given that you've obtained your EOT licence and followed all the other requirements outlined above.

What does Airbnb insurance cover?

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

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

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

However, AirCover does not meet the legal insurance requirements for renting out a holiday home in Greece.

Is holiday home insurance expensive?

The cost of holiday home insurance in Greece can vary widely, and it’s influenced by several factors, such as:

• Where your holiday home is located – homes near the coast, rivers, or other bodies of water often attract higher premiums due to increased flood risk.

• The size of your holiday home – larger homes generally cost more to insure because repairs and rebuilds are more expensive.

• What’s inside your holiday home – if you keep high-value items or luxury furnishings in your holiday home, expect your insurance costs to rise.

Luckily, there are several ways you can save money on your insurance costs!

5 ways to save money on your Greek holiday home insurance

1. Stay on top of maintenance

Regular upkeep helps prevent damage from wear and weather, reducing the chance of claims and keeping your premiums down.

2. Boost your security

Installing burglar alarms, secure locks, and even security cameras can deter intruders and may lower your insurance costs.

3. Consider a higher excess

Opting for a larger excess can cut your premium, but make sure it’s an amount you can comfortably afford if you need to claim.

4. Keep everything under one policy

Combining buildings, contents, and any extras under a single holiday home insurance policy is usually more cost-effective than using multiple providers. 

5. Pay annually 

Paying your premium in one go is often cheaper than spreading the cost monthly.

A note from Howden

Looking for tailored holiday home insurance in Greece? We work with leading insurers to find you the right cover for your needs, whether your property is for personal use or short-term lets. Our brokers can compare options across the market to help you get the right protection at the right price. Get a quote today or call us at 0117 403 3000

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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