Renting out your property should feel secure, even when unexpected damage happens.
Damage Protection is now automatically included at no extra cost with all eligible bookings in Madrid. It can cover valid claims for accidental damage to your property or furniture during a tenant’s stay, based on the insurance coverage.
For bookings in France, Munich, or Barcelona, Damage Protection is included as part of Rent Guarantee.
So you can rent out your property with more confidence, knowing there’s support in place if eligible damage happens.
In this article
What is Damage Protection?
Damage Protection is an insurance we include with all eligible bookings on HousingAnywhere. It protects you if your tenant accidentally damages your property or the furniture during their stay.
How much coverage does Damage Protection provide?
For eligible claims, Damage Protection covers up to €10,000 under one combined limit. Eligibility depends on the type of listing, required documents, coverage rules, and Mila, HousingAnywhere’s insurance partner’s claim assessment.
HousingAnywhere Damage Protection covers up to €10,000 for property and furniture damage under one combined limit. This means you won’t have separate sub-limits for different items, making any claims process much simpler.
Damage protection is not an automatic payout. Claims are reviewed based on booking eligibility, required documents, move-in and move-out reports, claim evidence, and any exclusions that may apply.
Renting with security deposit
If you collect a security deposit, the tenant is responsible for repair or replacement costs up to the amount of the deposit. If the accidental damage costs more than the deposit, Damage Protection covers valid extra costs, up to the coverage limit.
So while the security deposit still applies, Damage Protection gives you extra protection if the damage goes beyond what the deposit can cover.
Example
Let’s say the tenant’s rent and deposit are €1,000 each. During the stay, the tenant accidentally damages the sofa, and the replacement cost is €1,500.
Deposit: €1,000
Repair cost: €1,500
Tenant responsibility: €1,000, the deposit amount
Damage Protection coverage: €500, the amount above the deposit
Your cost: €0
Renting with no security deposit
If you rent out a place with no deposit required, Damage Protection covers valid accidental damage from the first euro, up to the coverage limit.
This means you will still be protected even when you don’t collect a security deposit.
How does Damage Protection work?
Once a booking is confirmed, Damage Protection is included according to the booking’s setup.
For eligible Madrid bookings, standalone Damage Protection is included automatically at no extra cost. You don’t need to activate it separately.
For bookings in France, Munich, or Barcelona, Damage Protection is included with the booking if the tenant added Rent Guarantee.
Within 3 days of rental confirmation, INSURED services will create your insurance policy and email it to you. You’ll also receive login details to their online claim management system for when or if you need to file a claim. Damage Protection is provided by Mila and administered by INSURED Services.
Damage Protection coverage starts on the tenant’s move-in date.
Does Damage Protection cost extra?
No, it does not cost you anything.
In Madrid, Damage Protection is separate from Rent Guarantee. If your booking is eligible for Damage Protection, it'll be included automatically at no extra cost. If the tenant adds Rent Guarantee to their booking, they will pay for it. You'll get both Damage Protection and unpaid rent coverage at no cost to you.
For bookings with Rent Guarantee in France, Munich, or Barcelona, Damage Protection is included as part of Rent Guarantee. Rent Guarantee is broader, covering missed rent and damage.
What’s covered by Damage Protection?
Damage Protection covers valid tenant-caused damage and related costs, such as:
The fixed or structural parts of the home
This includes damage to immovable parts of the property, such as interior walls, floors, ceilings, and other built-in parts of the home.
Furnishings you provide as part of the rental, as long as they’re listed in the lease, inventory, or annexes
This can include items such as:
Sofa, armchairs, coffee table, curtains
Kitchen furniture, utensils
Bed, wardrobe, desk, chair
Bathroom mirror or storage furniture
TV, lamps, rugs, bookshelves
Lost rental income during repairs
Damage Protection also covers rental income lost during the time needed to complete valid repairs, up to 2 months’ rent.
What isn’t covered by Damage Protection?
Damage Protection doesn’t cover everything.
It doesn’t cover costs for:
Normal wear and tear
Damage before the tenant moved in
Damage covered by another property or liability insurance policy
Damage caused by fire, water damage, theft, natural disasters, or similar events
Furniture or belongings owned by the tenant
Your personal belongings stored in the property
Professional equipment, tools, or merchandise
Items not listed in the insured furnishings list, lease, or inventory
Some fixed or structural parts of the property are also excluded, such as:
Exterior walls, doors, windows, shutters, gardens, terraces, pools
Electrical wiring, boilers, radiators, air conditioning
Fitted kitchen elements, bathroom furniture, and built-in appliances.
What makes a booking eligible for Damage Protection?
A booking is eligible when:
The property is a residential dwelling, student housing, or another eligible rental type
The monthly rent is up to €5,000, including charges and taxes
The lease is signed and follows local housing regulations
The property meets habitability and safety standards
The tenant has provided the required documents, such as a valid ID and proof of university enrolment or employment
A booking is not eligible if:
The property is a holiday home, secondary residence, rural lease, agricultural lease, or social/subsidised housing
The property is declared unfit for habitation or is in a state of disrepair
The tenant is your spouse, civil partner, parent, child, or another direct family member
The rent is above the eligibility limit
The required lease or tenant documents are missing
What do you need to keep Damage Protection valid?
To make sure Damage Protection applies, the lease must be signed, and the move-in and move-out reports must be completed and signed by both you and the tenant.
These documents help Mila compare the property’s condition before and after the tenant’s stay. Without them, Mila may not be able to assess or approve the claim. You’ll also need the tenant’s required documents, such as a valid ID and proof of university enrolment or employment, so Mila can review the claim if needed.
If Damage Protection isn’t automatically included in a booking, the booking is not eligible. You can request Rent Guarantee from the tenant instead. Rent Guarantee is a paid add-on for tenants that provides broader protection, including missed rent coverage and damage coverage. This gives you another way to add protection when standalone Damage Protection isn’t included.
Related: Filing a claim
How move-in and move-out reports help support a claim
Move-in and move-out reports help show the condition of the property before and after the tenant’s stay.
Move-in and move-out reports are important for Damage Protection coverage. They are used by Mila, HousingAnywhere’s insurance partner, to review a damage claim and decide whether it’s covered.
This report is usually in the form of an inventory or handover report. It can include:
Date of move-in or move-out
Details of the landlord and tenant
Rooms, fixtures, furniture, and fittings
Condition of each room and item
Photos or notes of existing damage
Meter readings, if relevant
Keys handed over
Comments or reservations from either party
Signatures from both the landlord and the tenant
Make sure the report is completed and signed at both move-in and move-out.
What if the move-in or move-out report wasn’t signed?
Move-in and move-out reports are important for proving the condition of the property before and after the stay. If a report wasn’t signed, INSURED Services may ask for additional documents or evidence before Mila can assess the claim.
What if damage happens during the tenant’s stay?
If the tenant tells you something was damaged during their stay:
Keep a written record of what happened. Keep the conversation on HousingAnywhere where possible, so you have a clear record.
Ask the tenant to share photos and explain what happened
Damage Protection claims are reviewed using the move-in and move-out reports, photos, repair quotes or invoices, and any other documents requested by INSURED Services.
How to file a claim
If damage is found at move-out or you’re notified of damage during the tenant’s stay, follow these steps:
1. Complete the move-out report
Compare the property’s condition at move-out with the move-in report. Take clear photos and document the damage room by room, item by item.
2. Get a repair or replacement quote
Ask a contractor or supplier for a quote or invoice showing the expected repair or replacement cost.
If the damage needs urgent repair, arrange the repair and keep the quote or invoice. If it can wait until move-out, make sure it’s clearly included in the move-out report.
3. Notify the tenant
Notify the tenant in writing within 2 months of completing the move-out report and request payment for the damage.
In Spain, this should be done by certified postal letter or certified email with an acknowledgement. Include the repair or replacement quote with your notice.
4. Submit your claim file
After the tenant receives your formal notice, you’ll need to wait 8 days before submitting the claim file. This waiting period is a required step in the claims process. If the matter is not resolved after this period, submit your claim file to Mila, through the online claim management system shared with you.
Documents needed to file a claim
To file a damage claim, you’ll need:
The signed lease and any annexes
The move-in and move-out inspection reports
Photos or other evidence of the damage
The written notice sent to the tenant
Contractor quotes or invoices for repair or replacement
Your bank details
The tenant file, such as ID and employment or enrollment proof, if requested
Any other documents requested by INSURED Services
INSURED Services may ask for additional information before Mila decides whether the claim is covered.
What to avoid before your claim is reviewed?
To avoid delays or issues with your claim, don’t make changes to the property or agree to private arrangements with the tenant before the claim has been reviewed.
Before Mila or INSURED Services confirms your claim coverage, don’t:
Carry out repairs, unless the repair is urgent and you’ve kept the quote or invoice
Replace damaged items
Re-rent the property
Offer the tenant a rent discount or rent reduction for the damage
Agree to delay or waive payment without written confirmation from Mila
Make a private settlement with the tenant without informing INSURED Services
If the tenant pays you, contacts you about payment, or you agree on any next steps with them, let INSURED Services know. This helps keep your claim file accurate and avoids delays during the review.
What happens after you file a claim
After you submit your claim, INSURED Services will review your documents and let you know if anything is missing.
Once your claim file is complete, Mila, HousingAnywhere’s insurance partner, will decide whether the damage is covered. If the claim is approved, Mila will calculate the final compensation amount.
If compensation is paid, Mila may recover the amount from the tenant afterwards, where applicable. You may need to cooperate if the insurer needs information for recovery proceedings.
How long does the claim process take?
INSURED Services will acknowledge receipt of your claim within 2 business days and respond within 5 business days. If anything is missing, they’ll let you know what else is needed.
Once your claim file is complete and all requested supporting documents have been received, the insurer will pay the final compensation within a maximum of 20 calendar days, if the claim is approved.
Who provides the coverage?
Damage Protection is provided by Mila, HousingAnywhere’s insurance partner, and administered by INSURED Services, the claims administrator.
If you need to file a claim, INSURED Services will be your main point of contact for the claims process. They receive your documents, check whether your claim file is complete, and let you know if anything else is needed.
Mila is a trusted insurance company based in France and approved by the French Prudential Supervision and Resolution Authority, ACPR. This means they meet strict standards for safety and reliability. Mila is also backed by Munich RE, Hannover RE, and Swiss RE, 3 of the world’s largest and most respected insurance reinsurers. These companies provide extra financial support, so you know the coverage is dependable.
Once your file has been reviewed, Mila decides whether the claim is covered and, if approved, calculates the final compensation amount.
HousingAnywhere helps make Damage Protection available through the platform, but HousingAnywhere is not the insurer. Coverage depends on Mila’s eligibility requirements, the required documents, and the claim assessment.
Does Damage Protection replace the security deposit?
No. Damage Protection doesn’t replace the security deposit.
If you collect a security deposit, it remains part of the rental agreement. Damage Protection covers valid repair or replacement costs that go beyond the security deposit, up to the coverage limit.
If no security deposit applies, Damage Protection may cover valid accidental damage from the first euro, up to the coverage limit.
How Damage Protection is different from Rent Guarantee
If a booking is eligible, Damage Protection will be included even if the tenant doesn’t choose Rent Guarantee.
Damage Protection
Damage Protection focuses on tenant-caused damage to the property or furnishings. It may cover valid damage claims up to €10,000 under one combined limit, depending on eligibility, required documents, and Mila’s claim assessment.
For eligible Madrid bookings, standalone Damage Protection is currently included automatically at no extra cost.
Rent Guarantee
Rent Guarantee provides landlords coverage against missed rent payments and damage costs. It works as a great replacement for tenants without guarantors, or for situations where you need a stronger guarantor than an individual.
In Madrid, Damage Protection is already included for eligible bookings. If the tenant needs a guarantor replacement or if the booking isn’t eligible for standalone Damage Protection, you could request Rent Guarantee from the tenant.