How to protect yourself from Airbnb cancellations? - European governments are cracking down on short-term rentals
European governments are sharply restricting short-term rentals like Airbnb, increasing the risk for travelers during the tourist season. Experts are recommending a series of measures to ensure customers are protected from unexpected cancellations.
Governments across Europe are cracking down on short-term rentals. Last month, Spain ordered Airbnb to delist 65,000 properties. Other popular destinations, such as Italy and Greece, have implemented similar measures.
These new laws and regulations come ahead of the busy summer travel season. "They can cost travelers money and put them in a difficult position, especially if accommodations are suddenly canceled or become unavailable," says insurance provider Squaremouth.
Travel insurance can cover Airbnb stays and other vacation rentals as long as it includes trip cancellation or trip interruption coverage, Squaremouth explains. However, these benefits only reimburse you if you cancel for a reason the company covers, such as illness or bad weather that prevents you from traveling. Most of them don't cover government restrictions.
However, Airbnb and other companies have policies to protect travelers. “If the host cancels or the reservation is significantly different from the one advertised, Airbnb will help you find a comparable replacement or offer you a refund,” industry experts explain. But this refund will not cover additional costs that may be associated with travel tickets, rental cars, etc.
To fully protect yourself from canceling an Airbnb reservation, experts say you can consider booking a travel package. This doesn't necessarily mean with a tour operator.
“Booking travel and accommodation through a travel agent ensures that you are protected under package travel regulations, offering financial protection if travel or accommodation providers change your package or are unable to provide the service,” they explain.
Also, booking flexible flights can sometimes cost more, but it allows you to change plans at the last minute. If you prefer to book your travel and accommodation separately, you may not be covered by a standard policy if one component is cancelled.
Squaremouth recommends choosing an insurance policy that offers a ‘cancel for any reason’ (CFAR) option. This option provides a partial refund for prepaid and non-refundable bookings. If you need to cancel your trip for a reason not covered by a standard policy, such as government measures against Airbnb, then this is the right solution.
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