Holiday Velvet, a Barcelona-based holiday rental agency, has partnered with the Adar to offer its clients an insurance to offer liability insurance for short-term rentals.

The option will be offered when clients receive their booking voucher, which includes other details such as the full address of the property, where to pick up keys and the local contact.

According to the Holiday Velvet, Adar’s policy, which applies to rental agreements under 90 days of duration, covers cancellations due to illness (up to EUR15,000 ), damage caused by fire, theft and water, and expenses occurred by road and rail disruption up to 48 hours after clients were due to take possession.

It also covers cancellation by the owner due to property damage. The policy covers all types of holiday accommodation, including caravans, villas and boats.

Frederic Lagacherie, operations manager at Holiday Velvet, said: “We have been looking at the possibility of offering our customers travel insurance for some time. We chose to do it through Adar precisely because they are one of the few insurance companies that cover damage to short-term rental properties.”