Home insurance in Spain is cheap by northern European standards and quietly useful. It is also the policy most people sign once and never read again. A little attention at the start, and again at renewal, is usually enough to make sure you are covered for the things that actually happen.
Two different policies
There are two separate products and people often confuse them. The first is building insurance, which covers the structure, the walls, the roof and the common elements. The second is contents insurance, which covers what is inside your home, from furniture to electronics to personal belongings.
If you own an apartment, the building is normally insured by the community of owners and you are charged for it through your community fees. What you buy for yourself is contents cover, plus improvements you have made inside the property.
If you rent
Renters often assume they are covered by the owner's policy. Usually they are not, or only partially. The owner insures the building. Your belongings, your bicycle, your laptop and your liability as a tenant are your own responsibility.
A renters policy in Spain is inexpensive and covers contents, theft, water damage and third party liability. Some policies also cover accidental damage to the rented property, which protects your deposit.
If you own
Owners need contents cover and should check that the building is properly insured through the community. Ask the administrator for the current policy and confirm the sum insured is realistic. Underinsurance is common in older buildings, and it can reduce payouts proportionally.
If you rent your property out, tell the insurer. Short term letting changes the risk and can void a standard policy if it is not declared.
What a standard policy usually covers
- Fire, explosion and smoke damage
- Water damage from pipes and appliances
- Theft and attempted theft
- Storm and hail damage
- Glass breakage
- Third party liability, which covers damage you cause to others
- Temporary accommodation if your home becomes uninhabitable
What is often excluded
- Wear and tear and poor maintenance
- Damage caused by insects or rodents in some policies
- Items left outside the home
- High value jewellery and art beyond a stated limit
- Damage from flooding in areas classified as high risk, unless specifically covered
Read the exclusions page first. It tells you more about a policy than the summary ever will.
The community of owners
If you live in an apartment, the community of owners, the comunidad, maintains the building and holds the building insurance. You pay a monthly or quarterly fee and you have a vote at the annual meeting. Keep a copy of the building policy and the administrator's contact details. When something goes wrong with a shared pipe or the roof, they are your first call.
Comparing and renewing
Policies renew automatically. Set a reminder three weeks before the renewal date and compare a quote on the same coverage, not on the premium alone. Increasing the sum insured to reflect rebuilding costs is worth doing every few years, because construction costs rise faster than most people assume.
A short checklist
- Confirm whether you need contents cover, building cover or both
- Check the sum insured against the real value of your belongings
- Look at the water damage limit, which is where most claims happen
- Check whether accidental damage is included
- Tell the insurer if you let the property or work from it
- Keep photographs and receipts for anything valuable
- Review the policy every two years
None of this takes long, and it turns a policy you never think about into one that actually works when you need it.