Squaremouth Reports on Global Airbnb Crackdown: What Travelers Need to Know
ST. PETERSBURG, Fla., June 20, 2025 /PRNewswire/ -- Governments across Europe and Asia are cracking down on international rentals. Last month, Spain ordered Airbnb to delist 65,000 rentals. Earlier this year, Thailand issued a warning to foreigners buying apartments and renting them out that they are violating Thai law. Other popular countries, like Italy and Greece, have implemented their own similar measures.
These new laws and regulations come on the brink of the busy summer travel season, when traveler anxiety is already skyrocketing. Squaremouth, the nation's largest travel insurance comparison service, reveals what you need to know before booking your trip this summer.
How These Crackdowns May Impact your Trip
The crackdowns across Spain, Italy, Thailand, Greece, and other regions are part of a larger push to address housing inequality and overtourism.
Crackdowns like these can leave travelers in a bind and cost them money, especially if accommodations are suddenly canceled or become unavailable. This happened to a Squaremouth employee recently, who had her rental suddenly canceled at the last minute.
"We had an Airbnb booked in Bangkok, but Thailand had just issued a ban on short-term rentals in apartments and condos because they say it disrupts the public," said Arielle Turriff, Product Development Manager at Squaremouth. "Our booking got canceled, and since a lot of our plans were based around that area, we had to find a hotel nearby last minute. It ended up costing us an extra $500."
Does Travel Insurance Cover Airbnbs?
Travel insurance can cover Airbnb stays and other vacation rentals as long as you have Trip Cancellation and Trip Interruption coverage. However, these benefits only reimburse you if you cancel for a covered reason, like an illness or severe weather that prevents you from traveling. Most plans do not cover government restrictions.
If you're staying in an Airbnb and want complete flexibility, opt for a policy with Cancel For Any Reason (CFAR) coverage.
CFAR is an upgrade that offers partial reimbursement for prepaid and non-refundable trip payments if you need to cancel your trip for a reason not otherwise covered by Trip Cancellation, such as a government crackdown on Airbnbs.
CFAR is a popular benefit for many travelers, as it provides the most possible flexibility when it comes to canceling a trip. In fact, Squaremouth has seen a 34% increase in travelers purchasing CFAR compared to last summer.
Squaremouth's Tips for Enjoying your Summer Vacation Rental
Always purchase travel insurance as soon as you book your Airbnb to maximize your coverage window, especially for Trip Cancellation benefits.
Heed local government notices and warnings when it comes to disruptions.
For maximum flexibility and peace of mind, consider Cancel For Any Reason (CFAR) coverage.
About Squaremouth
Squaremouth is a trusted name in the travel insurance industry offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients.
Media Contact
Ned Tadic
ntadic@squaremouth.com
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