Property Insurance: Considerations for Expats Living in Spain
Finding your dream home or holiday home in Spain is very exciting. You’re finally able to enjoy all the things the Spanish lifestyle has to offer – such as great food, plenty of sunshine and the various fiestas throughout the year. But, imagine if something were to happen to your beloved home. A theft, perhaps. Or maybe a fire?
Not only do such events have an emotional impact on homeowners in Spain, but they can also be devastating financially. This is why getting your head around Spanish property insurance is important to ensure you’re fully insured in the worst-case scenario.
In this guide, we’ll explain everything you need to know about protecting your home in Spain so you can rest assured knowing that you’re covered in an emergency.
Is Property Insurance a Legal Requirement in Spain?
You might be surprised to find out that property insurance is not a legal requirement in Spain. Unlike car, health and social insurance, you don’t need property insurance – although it is highly recommended. Without property insurance, you’ll have to foot the bill if there is any property damage to your home or those around you and also buy replacements for stolen items.
The only time you may be required to take out home insurance is when you get a mortgage from a bank. The institution may lend you money or place a loan with a third party to ensure that their investment is covered.
An Overview of Spanish Home Insurance
Insurance companies usually offer two types of property insurance. These are:
● Seguro de Contenido (Contents Insurance)
● Seguro de Construcción (Building Insurance)
Contents insurance covers all the moveable assets in a home, such as valuables, furniture and fittings and it’s sometimes referred to as renters insurance.
Building insurance, as you might imagine, is insurance for the physical building, including internal fixtures, ceilings, walls and floors.
Most insurance companies offer both types of Spanish property insurance in a combined package, which can often work out cheaper. It’s also important to check that the package includes liability insurance, which covers you if you’re legally responsible for damages to someone else’s property.
Understanding Spanish Holiday Home and Rental Insurance
Many of us buy property in Spain to enjoy ourselves but also to rent out when we’re not there. If this is the case for you, it’s worth thinking about holiday home and rental insurance. This will cover you in the case of tenants breaking things in your home or theft. The amount of insurance you’ll have to pay will depend on the location of your home, size and amenities.
Can You Use Foreign Home Insurance in Spain?
Spain doesn’t legally prevent you from using home insurance from your own country. It really depends on your insurance provider. They may allow you to extend your current package to include overseas insurance or you may need to consult a specific holiday home/overseas insurance provider in your country.
It may be the case that they only offer building insurance rather than contents insurance, so be sure to double-check. They’ll also probably want to reassess your premium, depending on your new circumstances.
Choosing the Right Spanish Property Insurance Provider
It can be difficult to choose a provider, especially when they’re protecting something as important as your home. It’s essential to do your research and choose an insurance company that has extensive experience in home insurance in Spain and that’s trustworthy. Consider things such as customer service, how they handle claims and coverage options. You need to read through proposals carefully to ensure you’re fully covered for your property’s needs and requirements.
Payments are another important aspect to consider. Do they expect monthly payments? Or one lump sum? By setting up a Bueno Current Account, you can easily manage your payments and transfer funds as and when necessary.
How Much Does Property Insurance Cost in Spain?
There are several factors that insurance providers will take into account before offering you a policy. These include location, size, age of the building, amenities and what kind of coverage you want. Basic coverage usually includes the main worries, such as fire, flood, and explosion but it may not cover everything you require. For example, have you recently invested in a solar energy system in Spain? Then you may need to take out extra cover to ensure solar panels and systems are kept safe too.
Investing in good property insurance in Spain can seem expensive. But, long term, it could work out to be seriously beneficial financially in the case of an emergency.
Vacant Property Insurance in Spain
Squatting laws are complicated in Spain, especially when it comes to defining squatters and their method of entry. The pandemic, in particular, meant that many holiday homes were sitting empty which increased the number of squatters in Spain. Even after the pandemic, if your home goes unoccupied for a while, you might want to consider vacant property insurance. Not only can certain insurances help with missing costs from squatters but they can also cover you in the case of damage, from, for example, a water pipe bursting and it going unnoticed.
Property Insurance in Spain: Final Thoughts
In all likelihood, your property in Spain is going to be one of your biggest assets. It’s therefore really important to take out Spanish property insurance to ensure you’re covered in the worst-case scenario. It might not be legally required but it is highly recommended. Not only will this help you financially but it will also give you peace of mind, meaning you can enjoy your Spanish holiday home knowing you’re insured.