Lanzarote lawyer Erardo Ferrer explains the Law of Classified Activities and liability insurance as they apply to holiday rental owners.
Classified activities are those that, by their nature, require administrative authorisation from local councils to ensure the safety and well-being of guests. This applies to any type of business open to the public, including bars, shops, cafes, etc.
Holiday homes intended for tourist rental are also considered as classified activities and therefore require this authorization. A report from an expert (preferably an engineer) is required to ensure and certify compliance with the safety, habitability, and hygiene requirements established by the regulations.
The owners and operators of the license are accountable for failure to comply with this requirement in the event of an accident, injury, or death of the guest. All tourist accommodation must be safe and meet a series of health and habitability requirements for the benefit of tourists.
This requirement is not new, but until recently hardly any owner has complied with it.
It is also extremely important to have special home insurance for tourist rentals with sufficient liability coverage. Most owners are unaware of this and have regular home insurance that does not cover this activity. This, apart from being a serious violation of the Tourism Law, is a very serious risk for owners in the event of a fall, injury, or death of a client, as they will face not only high fines from the competent administrative authority but also the payment of substantial financial liabilities that regular insurance does not cover.
Difficult times lie ahead for holiday rentals in the Canary Islands. The new Canarian holiday rental law will seek to regulate and control the boom in vacation rentals, prioritizing access to housing and sustainable tourism development. Town councils (Ayuntamientos) will play a key role in the planning and management of this activity, being able to establish restrictions in specific areas.
In short, the Ayuntamientos will become the primary regulators of holiday homes in the Canary Islands. They will review the licenses in each municipality and reduce all possible licenses, first cancelling those that do not meet all the requirements (including the classified activities regulated by each city council) and also those based on quality criteria.
We offer a comprehensive service for classified activities, in which our engineer, electrician, and official fire safety installer will certify the safety of your home for tourist rentals.
We can also obtain the best insurance policies with the broadest coverage to give owners peace of mind.
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