Research has shown 3.4 of house-swappers were heading for Spain, 15 to France and 10, opted for a home exchange as a cost-effective way of spending their holidays.
But nearly a quarter, or 24%, reported returning home to a damaged property.
Lloyds TSB Insurance urged home-owners to notify their insurer before embarking on a house swap.
It also said house-swappers should register with a reputable house-swap website to reduce the risk of any unwelcome exchanges.
Paul Spillane, head of home claims at Lloyds TSB Insurance, said: "House-swapping looks set to be the trend of the year - it's easy to see why, as this type of holiday caters for so many different tastes.
"To ensure people make the most of their house-swap holidays, we're urging them to alert their insurers before taking part in an exchange so they don't jeopardise their cover."