Insuring Your Spanish Property

Insuring Your Spanish Property

We never know when a calamity might occur in a home, which could be anything from a burst pipe, to a tree falling and causing considerable damage, right through to a fire that destroys the entire home. Therefore, it is always best to be well prepared for any mishap whether minor or major by having adequate home insurance.

In Spain, compared to the UK, home insurance policies are relatively cheap. However, having said that, it is always vital you read the fine print, as the cheapest policies tend to also be those that allow the insurance companies more excuses to deny your claim.

Types of Home Insurance

When choosing an insurance policy you have the option of contents cover, building cover, or covering both contents and the building.

If you buy a property with a mortgage, you are obliged to take out buildings cover. This insures against structural impairment, and damage to any fixtures. Content cover insures any belongings that are not part of the building – so anything that can be picked up and carried away, such as computers, unfixed furniture, jewellery and paintings. The amount you pay for your contents insurance will depend on how well you have secured the property, so it is worth installing alarms, strong shutters and robust doors, not only for your peace of mind, but also to decrease the cost of your annual premiums.

Insuring a Rental Property

If you have bought a property you plan on letting, as well as taking out contents and building insurance, you are advised to think about public liability insurance. This insures you in the event that anyone should sustain an injury whilst on your property, such as tripping over an uneven path or slipping on wet swimming pool tiles. Even if they are at fault, you can still be held liable if the accident occurs on your property, so this is worth looking into, particularly if you plan to let the property to groups of holidaymakers.

You can also insure against non-payment, where you are covered in the event the tenant fails to make the rental payments. This type of insurance is recommended if you plan to let your property to long-term tenants, and not apt for short holiday lets when you should always receive the payment in advance.

Insuring a Holiday Home

A large percentage of buyers purchase a property in Spain as a holiday home, which they plan to use more often, or indeed live in all year round when they retire. Holiday home insurance can be arranged through any Spanish bank, and usually tends to be reasonably priced, though you might be disappointed with the service provided when it comes to making a claim.

Alternatively, find an insurance broker – there are many in Spain, but as a holiday home owner who has not yet moved to the country, chances are you will struggle with understanding the documentation and small print written in Spanish. If that is the case, you might prefer to look for a company offering overseas property insurance in your home country. This tends to be more expensive that taking out insurance with a Spanish bank or insurance broker, but at least all the paperwork is issued in a language you understand.

Unless you take out a Spanish mortgage, home insurance in Spain is not mandatory. However, we recommend this is a matter you don’t overlook regardless of whether you live in the property, rent it, or use it as a holiday home.

For more advice and tips on all things related to buying a property in Spain, visit