Liability insurance for your Italian property: practical tips
Updated: 2 days ago
Property you own abroad is generally not covered by your personal liability insurance in your home country. It is therefore particularly important to arrange liability cover for your overseas property, either as part of your buildings insurance or as a separate policy. This article explains what to look out for.
1. Why liability insurance is essential in Italy
Under Article 2051 of the Italian Civil Code (Codice Civile), a person who has custody of an object is liable for damage it causes unless they can prove that it resulted from a fortuitous event. This is a form of strict liability with a reversed burden of proof. Article 2053 also applies to collapsing buildings or parts of buildings: the owner is liable unless they can prove that the collapse was not caused by a maintenance defect or a construction defect.
In practice, this could involve a loose roof tile, a falling icicle, a rotten jetty or a wet marble staircase. The burden of proof rests with you even if you were in Zurich or Stuttgart when the incident occurred. Liability is not capped. Personal injury compensation is assessed using the Milan tables and can quickly reach high six- or seven-figure amounts in cases of permanent disability.
Special case: commercial short-term letting
If you let property as a business—because you let more than four units or provide additional services such as breakfast, cleaning during stays or reception services—you need a dedicated policy for accommodation businesses, such as “RC Bed and Breakfast”. Private home insurance policies (“polizza casa”) exclude damage arising from commercial activities. This article, however, focuses solely on private property liability insurance.
2. The four types of liability cover
Italian policies distinguish between liability arising from different roles. These types of cover are not automatically included; each must be selected individually.
RC della proprietà – liability arising from the building itself
Example: a storm dislodges a roof tile, which causes an injury.
RC della conduzione – liability arising from occupying or using the property
Examples: an overflowing bath, a chimney fire or a window that blows into a neighbour’s car during a storm.
RC del locatore – liability towards tenants and their guests
Example: you let your property and a tenant suffers injury or damage. Under many policies, tenants, relatives and members of the same household are not automatically treated as covered third parties (“terzi”) unless this type of cover is included.
RC del committente – liability as the person commissioning building work
Example: you hire a contractor who is clearly unsuitable for the planned work, and they damage the communal property of the apartment building in which you own a flat. Your neighbours then bring claims against you. This cover addresses such claims arising from your role as the person commissioning the work. Important: this insurance covers third-party claims, not damage a contractor causes to your own property. It may respond indirectly where, as in the example above, communal property is damaged and your neighbours bring claims against you.
3. The information that determines your cover
Italian insurance policies rely on the information you declare. Under Articles 1892 and 1893 of the Italian Civil Code, incorrect information may allow the insurer to challenge the policy or reduce compensation proportionately. In addition to selecting the appropriate cover, you therefore need to ensure that the insurer has accurate information about the property:
Use of the property: This is the most important field. Specify whether the property is permanently occupied, vacant for long periods, let on a long-term basis or used for short-term rentals. This will usually affect your annual premium. Limit of indemnity: €500,000 is too low in view of Italian personal injury compensation levels; €1.5–3 million should be your starting point. Check for lower sublimits applying to water and fire damage.
Other important details to include in the policy:
Ongoing or planned building work, which must be disclosed and usually attracts an additional premium
Specific risk features: a swimming pool, jetty, mooring, mature trees or retaining walls
Building type and whether the property forms part of a condominium
Year of construction
Accurate policyholder, municipality and cadastral details. Administrative errors can persist through years of renewals and only become an issue when a claim is made.
Still planning your purchase? Read our overview of buying a holiday apartment in Italy to consider personal use, financing and letting together.
