Home insurance in Spain is not mandatory, however it is a very good idea to have your Spanish property insured to cover you against various risks such as theft, fire, water leaks etc.
Home insurance is pretty reasonably priced in Spain, the important factor is to make sure that you have the right type of insurance to cover your property correctly.
Here are some important things to consider when taking out a home insurance:
Do I need to insure the building?
If you own a property that is part of a Community, then generally you would not need to insure the building as this aspect is covered by the Community’s insurance policy. However, it is recommended to include a small amount of buildings cover, often called ‘first loss’, which will cover you for any internal structural damage, which the Community policy may not cover.
How much should I insure my property for?
If you live in an independent property, then you should insure the building. It’s key to remember that the value of the build cover is based on the estimated re-build cost of the building, not including the land. This figure would be automatically calculated by the underwriters based on size, location, quality etc. It is not based on the sale value of the property.
How do I calculate the value of my contents?
This is not such an easy task and can be time consuming, but it is up to you as to how precise you wish to be. Things to consider are; the size of the property, the property use and the number of people living at the property. The contents value should be the total sum of all of your furniture, including Kitchen furniture and appliances, soft-furnishings, clothes and personal belongings. Do not forget that jewellery and valuable objects are considered part of the contents cover and you will need to include the value of each item in the overall contents value.
Correct use of the property
When insuring your property, it is important to state the correct ‘use of the home’. Do you live in the property full or part time? Do you rent the property out? If so, is it a long term rental contract or is it for holiday rentals? If the correct use is not stated, the insurance could unfortunately become invalid.
Un-occupancy
Another important factor to include on the policy is how many consecutive days that the property is unoccupied. There are usually specified ranges to choose from, e.g, up to 30 days, 31 to 180 days or more than 180 consecutive days. However, if you have a property management company that regularly check your property, then this would be taken into account.
Feel free to contact us if you would like any more information on home insurance. We can also help with other insurances such as car insurance and would be happy to provide a quote.