Property insurance in Spain

Although it is not a legal obligation to have property insurance in Spain it is strongly advisable to have at least the minimum cover. Why?

Philip Rayner from AJB INSURANCE notices, that is very important to insure your property.

A house is the most expensive thing that we own. We have taken years to save enough money to buy one. Imagine what would happen if the property is damaged by a major storm, there is a gas explosion, it is flooded. If you don’t have insurance would you be able to replace all the damage? The cost of property insurance is very low in relation to the insured value so it is very wise to have an insurance policy.

Strongly recommended

Although it is not a legal obligation to have property insurance in Spain, it is strongly advisable to have at least the minimum cover. Especially the public liability cover. This covers for any damage that your property may do to a third party.

For example: if you live in an apartment and have a water leak, which causes damage to the apartment below, you are responsible for all the damages. So if you do not have insurance you would have to cover the costs yourself.

Or if you live in a villa and your tree falls onto the neighbor house /car. You are liable for the costs.

There are many levels of insurance cover for properties. They range from the very basic cover, only to insure for third party liability up to comprehensive cover which would include accidental damage to your contents, jewellery cover etc. The policy you choose will depend on the level of cover you require.

What should be considered when insuring a property?

Of course, the insurance premiums are calculated on the insured values as well as the covers contracted. Also the type of property, protections of the property, area in which you live and usage of the property i.e. main house, holiday home or let to third parties.

The age of the property is important for insurance purposes as the risk increases as the property is older i.e. water pipes, electrical installation, condition of roof, walls etc.

Remember, the insurance companies premiums are rated on the area in which you live. For example, an area that has had a large number of claims over the years will be more expensive to insure. It is not normal for a company to refuse to insure in a certain area, but – yes – they can charge more.

Verify the information

When insuring a property it is vital to understand the covers that you require and that all the information that you give regarding the property is correct. If, for example, you state that you have an alarm system connected to a security company then the insurance premium will reflect this (cheaper price ). However, if you later take out the alarm system or do not activate it when you leave the property then in the event of a robbery the policy will be invalid.

Read before signing

It is important that you get a quote in writing before you contract an insurance policy. So that you can see what is being covered under the policy and more importantly what is NOT covered.

Each insurance company offers different covers. For example, many companies do not include theft cover as standard. It is an optional extra. Others have an excess for any claim, others do not cover any jewellery unless specifically requested.

It is very important to discuss your needs with a qualified insurance agent to ensure that you find the right policy for your particular needs. The agent will advise on the best covers for each client and the values that they should be insured for.

The most common claims

Lists of claims vary considerably. But the most common claims are for broken water pipes, electrical damage to contents and storm damage. Of course there are always claims for robberies.