Short answer: When you cancel a cottage rental, what counts is what you agreed with the owner: how much of the deposit you lose is set by the cancellation terms. Without them, disputes over the deposit are hard to win. Cancellation insurance reimburses the lost deposit or price after deducting the 10% excess if you can’t go because of illness, injury or other covered reasons. The condition is a written booking and proof of payment.
One-minute summary
- The owner sets the cancellation terms. With a private owner, get them in an email or message before you pay the deposit.
- By law, the owner can keep earnest money (závdavek) if you don’t turn up. How much of a deposit you lose is set by the agreed terms.
- The 14-day withdrawal period doesn’t apply to a cottage booking, and with a private owner, consumer protection doesn’t apply either.
- Cancellation insurance reimburses the lost deposit or price after deducting the 10% excess. For a cottage costing CZK 16,000, the premium is CZK 1,440, and if you lose the deposit it pays back CZK 7,200.
- You can only insure a booking you can prove: a confirmation with the dates, price and cancellation terms, and proof of payment.
How holiday cottages are rented
With holiday cottages, you usually pay a deposit when you book and the balance before you arrive. The owner sets the cancellation terms. If you book through a platform, they’re in your confirmation; with a private owner, it depends on what you agree.
This is where most of the confusion comes from. An agreement over the phone, a deposit by bank transfer and not a word anywhere about what happens if you don’t turn up. Then you end up arguing about money just when you have a fever or a sick child.
What to have in writing before you pay the deposit
It doesn’t have to be a signed contract. An email or message that makes everything clear will do. It helps in any dispute and with the insurance:
- who is renting out the cottage: name, phone or email, and for a company its company ID (IČO),
- the address of the cottage, the dates and the number of people,
- the price and what it includes: energy, cleaning, bed linen, local tourist tax,
- the deposit: how much and by when, and when the balance is due,
- the cancellation terms: how much you lose if you cancel a month, a week or a day before,
- what if the owner cancels: a refund of the whole deposit, or alternative dates,
- a refundable security deposit for damage, if the owner wants one, and when it will be returned.
Pay the deposit by bank transfer, or get a receipt for it. Cash without a receipt is hard to prove.
Deposit or earnest money? And why the 14-day withdrawal period doesn’t apply
| Situation | Deposit (záloha) | Earnest money (závdavek) |
|---|---|---|
| What it is | Part of the price paid in advance. | An amount confirming that the contract has been concluded and guaranteeing that you’ll keep to it. |
| You don’t turn up | How much you lose is set by the agreed cancellation terms. | By law, the owner can keep it. |
| The owner cancels | The owner should refund the deposit. | You can ask for double the earnest money, or for the contract to be fulfilled. |
The 14-day period for withdrawing from a contract concluded online doesn’t apply to accommodation for specific dates — Section 1837(j) of the Czech Civil Code excludes it. And if the cottage is rented out by a private individual rather than a business, the consumer protection rules don’t apply at all.
If you haven’t agreed any cancellation terms, a dispute over the deposit is uncertain and drags on. That’s why it’s easier to have them in writing in advance.
When a group goes: splitting the cost and one policy
Usually one person pays for the cottage and the others send them their share. A list of who sent how much comes in handy if someone drops out.
You take out the insurance for the whole group with one policy: enter the total price of the stay and all the people (up to 10 people online). If one of the insured people then can’t go for a covered reason, the insurance reimburses their proportionate share of the price. The insurance pays nothing back to anyone who isn’t on the policy. Nor does it cover a friend who simply changed their mind.
When cancellation insurance helps
Cancellation insurance reimburses the lost deposit or price after deducting the 10% excess if you can’t go for a reason listed in the policy terms. For holiday cottages, the most common are:
- illness or injury of you or one of the insured people — a doctor confirms the diagnosis and length of treatment,
- illness, injury or death in the family or of the person you booked the cottage with,
- caring for a sick family member who isn’t going with you,
- a road accident involving the car you were going to travel in, if it can’t be driven and the accident was recorded by the Police of the Czech Republic,
- a burglary or major natural damage at home just before departure.
What the insurance doesn’t cover
- the weather: rain, too little snow or heat,
- the group changing its mind or not being able to agree,
- the owner cancelling the rental — they have to refund your deposit,
- health problems you already had when you took out the insurance (except a stabilised chronic illness).
Conditions not to forget
- You must be able to prove the booking. You can insure a stay for which you have a booking contract or a binding order, or which you’ve paid for in advance. If you make a claim, you provide the confirmation of the booking and payment, and a statement of how much the owner didn’t refund.
- The 30-day deadline. More than 30 days before arrival, you can take out the insurance at any time, even if you’ve already paid the deposit. A cottage booked 30 days or less before arrival can only be insured on the day of payment.
- Only new events. Illness, injury, death and pregnancy are covered if they arise no more than 180 days before arrival; other reasons, no more than 30 days before it.
- 10% excess. It doesn’t apply if the insured person is hospitalised for at least 24 hours or dies.
The insurance is always taken out for that specific booking. It doesn’t matter whether you rent the cottage through a platform or directly from the owner. More on the accommodation cancellation insurance page; all the reasons and exclusions are in the overview what the insurance covers.
What insuring a cottage for a week costs
A cottage for a week for CZK 16,000, deposit CZK 8,000. You insure the full price, and the premium is CZK 1,440. If you fall ill a week before arrival and the owner keeps the deposit as agreed, the insurer pays you CZK 7,200. If, under the agreement, you lost the full price, it pays CZK 14,400.
The premium is 9% of the price, at least CZK 26 per policy, and you can insure stays from CZK 300 online. Work out your own amount in the price calculator.
We’ll email you a quote for insuring your stay: I’d like an accommodation insurance quote.
What to do if you can’t go
- See a doctor before departure. You need a report with the diagnosis and length of treatment.
- Cancel the stay in writing and as soon as possible. An email or message is enough. The insurer may reduce the payout if cancelling in time would have been cheaper.
- Ask for the deposit back and get in writing how much the owner won’t refund. You can also ask about alternative dates.
- Report the claim to the insurer without undue delay, with your policy number. The process is on the how to make a claim page.
Frequently asked questions
Does the owner have to refund my deposit if I fall ill?
It depends on what you agreed. If the cancellation terms say the deposit is forfeited, you’re not entitled to a refund, even if you’re ill. Without agreed terms, the outcome of a dispute is uncertain. By law, the owner may keep earnest money (závdavek). Cancellation insurance gives you your money back if you took it out in advance.
Can I withdraw from a cottage booking within 14 days?
No. The Czech Civil Code excludes the 14-day period for accommodation for specific dates. With a rental from a private individual, the consumer protection rules don’t apply at all.
I paid the deposit in cash without a receipt. Can I insure it?
You can only insure a booking you can prove. Ask the owner to confirm the booking, price, cancellation terms and receipt of the deposit by email or message. Then you can take out the insurance, as long as there are more than 30 days until arrival.
Does the insurance pay if there’s no snow or it rains?
No. Weather that spoils your plans isn’t a covered reason. The insurance covers situations where you can’t go, such as illness, injury or illness in the family.
Can the whole group be insured with one policy?
Yes, up to 10 people online. The premium is calculated from the total price of the stay. If one of the insured people can’t go for a covered reason, the insurance reimburses their proportionate share of the price.
Sources
We verified the wording of the law on 26/10/2026. The links lead to third-party websites.
- Czech Civil Code (Act No. 89/2012 Coll.), Section 1808 — earnest money (závdavek) (opens in a new window)
- Czech Civil Code, Section 1810 — consumer contracts are concluded by a business (opens in a new window)
- Czech Civil Code, Section 1837(j) — exceptions to withdrawal within 14 days (opens in a new window)
- PP STORNO CZ 11/2025 policy terms — on the Documents page
Related
This article is general information, not legal or financial advice. The wording of the policy terms and your seller’s terms is what counts. The example scenarios are illustrative.